ValueRich Magazine Fall 2004 | Maria Bartiromo by GLX.com

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The Hard Facts Remember when the markets paid for the new Porsche, the addition to the family house, the vacation- and market buzz was part of every conversation? "Have you heard of HibittyHobbity & Company? They trade under the symbol HOTI. The stock keeps going up. The company is great:' "Really? What do they do?" "I don't know, something in the, ah, I mean they ... I can't remember, but my broker told me it's a real barn burner:' Back when the markets were flush, small-cap public companies had quality research and analysis published about their stock, quality fina ncing options and quality investors that added value and created wealth . Well, those days are over. Here's what you can take to the bank

choices except to dance with the devil. Mephistopheles will show up with investments based on extraordina rily complex financial vehicles and checkbook in hand. Make no mistake. His money comes with a price tag and the warning: Predator Investor. Take for example the toxic-spiraling-poisonous-reverse-convertible-preferred with 400 percent warrant coverage and reset provisions that kick in as soon as the sun rises in the east. Nine out of ten times these toxic investments do nothing but suck the lifeblood from a public company and its management. Given all of the above, public company officers owe it to themselves to look into ValueRich.

today: FACT: The public markets for small-cap companies have changed forever. FACT: There were more than 15,000 U.S. public companies in 1999. There are fewer than 11,000 today. FACT: 7,000 of those 11,000 U.S. public companies trade on the bulletin boards or Pink Sheets.

ValueRich was designed to re-energize public company finance. Each issue, we market your business objective to 53,000 readers who represent the most influential financial professionals in the United States, Canada and Europe. We will help make the right contacts until you find the right partners or investors. If you are a public company officer- or have the ear of one- be sure to check out the ValueRich MarketPlace in this issue.

FACT: It is now illegal for brokers or investor relations firms to cold-call new clients at home about stocks. FACT: New secu rity regulations and in-house financial controls

Also, please inquire about the ValueRich International Public Company Assembly and Exposition we are holding March 2005 in Palm Beach, Fla. We will be hosting over 300 public companies at

have all but crippled the ability for quality banking firms to do business with small-cap companies. FACT: Most credible brokerage firms in the U.S. have an internal policy against recommending stocks trading for under $5 to

the Palm Beach County Convention Center, along with thousands of Wall Street professionals and investors, in what will surely be the largest public company finance, networking and business development event ever held. Visit www.valuerichonline.com for the details.

clients. FACT: Approximately 90 percent of all public companies trade under $5. Historically, chaos and desperation rule after the meltdown of an industry. This is especially true with the collapse of the smallcap market of the '90s. Public companies have been left with few

There is no mystery to the ValueRich cure for what ails today's small-cap public companies - it's old-fashioned marketing and networking using direct marketing, Web publishing and special events. Problem solved.

Joseph Visconti President, ValueRich, Inc. www.v rexpo.net

Fall 2004 ValueRich Magazine I 5

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The Four-Hurricane Challenge This issue of ValueRich has arrived to you several weeks later than we intended, in large part due to hurricane madness. Charley hit the west coast of Florida August 13 and Frances hit the east coast in Palm Beach County, three weeks later. Ivan threatened, and then three weeks to the date after Frances hit, Hurricane Jeanne came ashore in the exact same place -just as we were making much belated final press preparations. ValueRich was right in the thick of it! Palm Beach County received no damage from Charley, but many of our resources were diverted to aid the west coast's recovery effort. So we were caught short when Frances

VALUERICH THINK SMALL-CAP, LIVE LARGE

Joseph C. Visconti President & CEO Jcv2000@bellsouth.net

David A. Willson Editor-in-chief dwillson@valuerichonline.com

J.C. Spradley Art Director jcs@valuerichonline.com

New York Contributing Editor Thomas Werner

threatened. The big warehouse building supply stores ran out of plywood, generators and other essentials very quickly. Lines of customers formed out into the parking lots, waiting hours for t he next truck to come in. Frances knocked out electrical power for nearly three million residents. Some remained

Contributing Editors

powerless for weeks. As Jeanne was brewing, and Ivan approached, the lines of people hoping to repair damage and restock grew even longer at the national chain stores.

Greg Allikas Will Andrews Steve Bennett Bill Burt Ralph V. De Martino Ronald D. Hunter Martha Moffett Charles V. Payne

And so, I found myself one morning wondering how I was going to get more bottled propane for our camp stove. Waiting in line for three hours in the hot sun was not a welcome prospect. Suddenly it dawned on me that we had a small local hardware store that might be less crowded. Sure enough, when I stopped by on the way to work, they were well-stocked and selling propane, camp stoves, generators and more, to a steady but manageable stream of local customers. The owner said their shipments had been arriving regularly. As I happily continued my drive into work, mission accomplished, I began thinking about the nature of small business versus big business. To reduce the effects of inventory on their corporate bottom line, the big warehouse stores employ just-in-time stock replacement methods that obviously couldn't meet the emergency needs of Florida. They became part of the problem rather than the solution. Most of the local hardware stores were forced out of business when the big building supply warehouses came to town. Those that survived did so by being creative and adaptable. My neighborhood store turned over sections of its floor space to home decor accessories and home theater electronics to keep the customers coming in. Small businesses and small-cap public companies account for more than 90 percent of American companies. The energy, diversity and flexibility of this sector have kept our economy chugging along in spite of the economic challenges we've faced since 2000. Yet the financial community and media have maintained a myopic focus on the top 10 percent of American companies. Government has compounded the challenges for smallcap public companies. The Sarbanes-Oxley Act of 2002 was hastily enacted to address lax accounting oversight, but created debilitating costs for smaller public companies. What will happen if America has even more difficult challenges ahead? Will the small business sector, the 90 percent, be able to pull our feet from the fire again? Not if it has been strangled by inattention and neglect. Our four-hurricane challenge in Florida has reminded me of perhaps the most important reason why we evangelize the small-cap sector at ValueRich. The 90 percent are important to all of us- apparently more important than we realize.

Rita Samols Liza Grant Smith Karen Willson

Contributors

Advertising & Convention Sales Gregg Lowenstein Vice-President of Sales greggl@valuerichonline.com

Dave Roeder Director of Corporate Development droeder@valuerichonline.com

Kim J. Armstrong Advertising Executive kja@va luerichonline.com

Brandyce H. Stephenson Public Company Profiles brandy@va luerichonline.com

Ashley Sosner Director of Corporate Development ashley@valuerichonline.com

Donna Falcone dfalcone@valuerichon line.com

Anne Hardy anne@vrexpo.net

Roxane E. West Director of Global Affa irs 1-214-244-6400,1-212-956-2461 Copyright 2004 by ValueRich, In c. All ri ghts reserved. ValueRich magazine is published four times a year. Reproduction without the permission of the publisher is prohibited. The publisher and editors are not responsible for unsolicited material and it wi ll be treated as unconditionally assigned for publication subject to ValueRich magazine's right to edit. Return postage must accompany all manuscripts, photographs and drawings. Every effort has been made to assure that all information presented in this issue is accurate, and neither ValueRich magazine or any of its staff is responsible for omissions or information that has been misrepresented to the magazine.

ValueRich, Inc.

David Willson Editor, ValueRich magazine www. vrexpo.net

1804 N. Dixie Highway, Suite A West Palm Beach, FL 33407 561 -832-8878, Fax: 561 -841-1524 www.valuerichonline.com www.vrexpo.net

Fall 2004 ValueRich Magazine

WORLD'S LARGEST

D E A l E R

VALU

ICH

THINK SMALL-CAP, LIVE LARGE

FALL 2004

Cover Story

fm Maria Bartiromo By David Will son

CNBC's most recognizable star takes over the helm of The Wall Street Journal Report. Cover p hot o of Maria Ba rtirom o by Thomas Werner. Ms. Bartiromo is wea ring a Niveo le nec kl ace and pendant, and Snowfl ake ea rrin g s, in diam ond s and w hite gold by Van Cleef & Arpels.

i.Want.l Smoke 'em if you can get 'em. From the world 's most coveted cigars to the world 's finest musical in strument, take a look at what's new, unique and just plain unusual.

: Cuervo y Sobrinos: The Revival of Famous Havana Timepieces By Bill Burt

A historic house of Havana horologists is back with a collection of Swiss-made timepieces that keep tim e to a mambo beat.

n.Fashion

Flower Song: Van Cleef & Arpels

By Karen Wil lso n

Inimitable VC&A has once again managed to encapsulate pure romance in a collection of fine jewelry. Aloha ! Welcome to Hawai i.

n.Motion

viva Rival

By Steve Bennett

The Italian boating legend com es to America with a fleet of sleek new cruisers.

mChampion: Racing to Prominence By Wi ll Andrews

South Florida Porsche and Audi dealer Champion is rocking the racing world with win after win, and its high-rolling customers are along fo r the ride.

9] Porsche 997: The 2005 Carrera, Carrera S More power, stunning technology, new creature comfort and archetypal styling make this new generation of the Porsche 991 a pre-ordained classic.

mAvantair: Soaring in Style By Liza Gra nt Sm ith

New Jersey-based Avantair is changing expectations of cost and performance for fractional aircraft ow nership, flying the fast and comfortable Piaggio P180 Avanti.

The Value~=~-~ MarketPlace Fall2004 Directory Public companies advertise their investment banking and financial needs in this revolutionary new directory for the financial industry.

www.vrexpo.net

- ""!. \

View public companies seeking to: Raise Capital

pg 57

Merge & Acquire

pg60

Partner & Joint Venture

pg 62

Develop New Business

pg 64

Attract Market Support

pg 66

Fall 2004 ValueRich Magazine

n.Business Norway: A Smart Play By Liza Grant Smith

Get to know some of the key players in Norway's booming investment sector.

mThe Paper Chase

By Liza Grant Smith

AccuPoll was among the first to build a voter-verified paper audit trail into its voting machines, and now activists and politicians are clamoring for the feature.

~ Choice or Chance: Small-Cap Stocks By Ronald D. Hunter Begin within the local commun ity to find the best small-cap company opportunities.

mHow to Escape the Small-Cap Trap

By Ralph V. DeMartino

Small-cap companies are in a historically unprecedented predicament, with very few financial resources available. But there are still ways to find success in this difficult market.

n.Ovations

a:J Courting Biotech

By Liza Grant Smith

Competition is fierce to develop biotech clusters. A few choice hotspots have emerged.

ml] SinterCast and the Engine of the Future By David Will son SinterCast of Sweden has eliminated all barriers to high-volume production with lightweight and super-strong Compacted Graphite Iron. The market potential is outstanding.

n.Spiration

~ Thomas Werner: Art as Business A New Yo rk photographer and gallery owner aids corporations, universities, fashion houses and serious collectors in meeting their specialized art needs.

mi] Capturing Cool By David Wi llson Photographer Willi am Claxton was Steve McQueen's constant companion when he was America's coolest film star. His new book is a hip, testosterone-filled journey into the '60s.

n.Town

Society of Illustrators

What's Behind the Red Door By Martha Moffett Many New Yorkers are not awa re of the little museum and club on East 63rd Street that has been the hangout of some of America's most beloved artists.

x.Peditions 1

Pampered Santa Fe Style By David Willson

Three hotels combi ne the unusual with the sublime in America's most distinctive city.

a.Taste 1â&#x20AC;˘

The Inn at Little Washington

By Karen Wil lson

Five-star host and chef Patrick O'Connell reinvents home-style st andards in his new cookbook, Refined American Cuisine: The Inn at Little Washington.

a.Toast

D!liJ Do Say Viognier!

By Greg Allikas

Tired of uninspiring white wines? Try Viognier, a spicy Rhone grape variety growing increasingly popular among California winemakers.

Take Your Hand Out of My Pocket- You'll Get My Vote By charles Payne Both political parties have avoided the issue most compelling to voters- ta x reform. 1

www.vrex po.net

Fall 2004 Value Rich Magazine 111

(

Thin Is In /

Since the return of Steve Jobs, Apple has increasingly improved the way we relate to technology by creating simple, user-friendly products that engage us in a personal and helpful way. With the new iMac G5, Apple now takes the desktop computer one step closer to those handy little personal devices that we've all come to know and love. At first impression, the iMac G5 makes you look twice: Where's the computer? Somehow Apple managed to pack a substantial desktop system into a mere two inches of depth - the world's thinnest desktop computer. It looks like a cross between a big full-color iPod and a flatscreen monitor. The entire computer, including the power supply and slot-load optical drive, is built right into the display and rests on a sleek aluminum foot. All the 1/ 0 ports line up neatly along the rear right side for easy access- and with easy-to-install optional AirPort Extreme and Bluetooth wireless modules, there's no more cable clutter. With its elegantly thin profile, compact footprint and whisper-quiet operation, the iMac G5 is the perfect fit for any location in the home or office. iMacs in the office? Don't laugh. Usable workspace is at a premium in today's workplace. Corporate space planners are increasingly designing office environ12 1ValueRich Magazine Fall 2004

ments around a whole range of slimmer, smarter and more mobile devices. The iMac G5 sets a new standard in that category. Strategically, Apple is staying right on message with the iMac G5. It is designed to be the perfect computer for ilife, Apple's pre-installed award-winning suite of digital lifestyle applications. ilife includes iTunes for managing and buying digital music, iPhoto for organizing and sharing digital photos, iMovie

7,200 rpm Serial ATA hard drives up to 250GB. Highperformance NVIDIA graphics with dedicated video memory is standard, providing outstanding graphics performance. The new iMac G5 is available in both 17-inch widescreen LCD and 20-inch widescreen LCD versions. The base model 17-inch widescreen LCD iMac G5 includes a 1.6 GHz 64-bit G5 processor, 256MB of 400 MHz DDR SDRAM, DVD-ROM/ CD-RW optical drive and 80GB

for digital moviemaking, iDVD for creating and burning video DVDs, and

Serial ATA hard drive for $1,299. The 17-inch iMac G5 is also available

GarageBand, a near-professional-quality musical instrument and recording studio. With its additional bundled software, the iMac G5 includes everything you need for the digital lifestyle, plus the ability to connect seamlessly to just about any device. Don't be fooled by the iMac G5's laptop-like dimensions. It is the most powerful iMac ever. With completely redesigned system architecture, this computer has expansion room for 2GB of 400 MHz DDR memory and comes with a selection of

with a 1.8 GHz 64-bit G5 processor, 256MB of 400 MHz DDR SDRAM, DVD-R/ CD-RW SuperDrive and 80GB Serial ATA hard drive for $1,499. The 20-inch widescreen LCD iMac G5 has a 1.8 GHz 64-bit G5 processor, 256MB of 400 MHz DDR SDRAM, SuperDrive (DVD-R/CD-RW) optical drive and160GB Serial ATA hard drive for $1,899. Available at Apple's retail stores and Apple authorized resellers. www.apple.com www.valu eri chonlin e.co m

Put Your iPod to Work

In the Spring 2004 issue of ValueRich, we covered a series of plug-in devices that enabled Apple's iPod to become a useful business tool. A number of new iPod add-ons have been introduced since then. One that caught our eye was the iTalk by Griffin Technologies. The iTalk module plugs into the top of the iPod without altering its sleek profile, converting it into a full-featured voice recorder with room for literally thousands of hours of recording time. The iPod comes with voice recording software installed and was made for managing sound files in conjunction with a desktop computer, so this is an ideal upgrade. iTalk has a built-in microphone designed to record crisp audio. Its Automatic Gain Control assures the best possible signal level for recording, whether you are making voice memos or recording in an open room . You can even connect an external microphone directly to iTalk for more recording options.

..............

The iTalk's built-in speaker is great to play back voice memos. In addition, you can use the mini-speaker to play audioboo ks or listen to downloaded seminars. You'll never realize how much you've missed a built-in speaker on your iPod until you have one. iTalk also includes a pass-through mini-jack to monitor voice recordings or listen to music without removing the module. With iTalk, the iPod becomes a portable, dockable dictation machine with a built-in high-quality speaker. $39.99 www.griffintechnology.com

Robo-dude He walks, he dances, he farts and belches. He's every 1a-yearold boy's ultimate companion.

tures; fast, dynam-

price not to have fat her and son fighting over him. Loaded with att itude and intelligence, Robosapien is the first robot based on the science of applied biomorphic robotics. Designed by Mark Tilden, a robotics physicist who has worked for NASA, DARPA and JPL through Los Alamos National Laboratory,

ic two-speed walking and turning; and full-function arms with two types of grippers. He comes programmed with 67 functions including pick up,

Robosapien is ready to rock right out of the box. This robo-dude is the result of a brilliant idea. Instead of individual motors attached to each joint being controlled by a microprocessor, as with Sony QRIO and Honda Asimo, Robosapien uses a set of sliding plastic parts to deliver output from only a couple of motors. This innovation reduces the number of parts, and wear and tear, allowing for low-cost production. It also greatly reduces the amount of digital computing power needed and makes it more flexible than it would be otherwise. As a result, Robosapien's power lasts several hours longer than other robots, using just four batteries. Robosapien is not merely a toy. He has fluid motions and ges-

throw, kick, dance, kung-fu, fart, belch and rap. You can even custom program him using up to 84 program steps with four program modes for advanced operations, including programmable "reflexes" to sound and touch stimuli. His only limitation is your imagination. $99 suggested retail price www.robosapienonline.com

Robosapien is predictably the "must have" toy of the 2004 holiday season. You'd better go ahead and buy one early while they're in stock- heck, buy two. At less than $100 apiece, it's worth the

www.v rexpo.net

Fall 2004 ValueRich Magazine ~ 13

AChair With a Human Touch The massage you get while embraced in the leather Human Touch massage recliner from The Sharper Image is so, urn, human that you'll probably want to name it Helga. This densely cushioned leather upholstered chair was inspired by the luxurious recliners found in premier corporate jets, and would look stylish in any office. You'll also enjoy rejuvenating full-body stretching - an extraordinary 15-minute massage and stretching program that is the ultimate tension-relieving spa experience. The chair also has a calf-and-foot-massaging footrest and many of the customizing Robotic Massage features of Sl's top-ofthe-line quad-roller massage chairs- but for $1,000 less. The chair integrates four quad rollers that move threedimensionally in a way that realistically mimics the in-andout, up-and-down movements of the arms, hands, wrists, fingers and thumbs of a skilled and tireless massage professional. The Leather Human Touch chair also features penetrating neck massage, custom height and body type adjustments, programmed 15-minute back massage routines, focused foot massage programs, programmed "spa" sessions and enhanced calf and foot massages. $1,999.95 www.sharperimage.com

World's Finest Cigar Ask any connoisseur of handmade cigars which cigar they consider to be the world's best, and they will mention Fuente Fuente Opus X.

to old-world Cuba of the 1800s. Arturo Fuente learned the art of cultivating tobacco and manufacturing handmade cigars from his father in Cuba. His son, Carlos

Since the Opus X was introduced, it has been popular with cigar lovers throughout the U.S. and abroad - but in short supply. Opus X cigars are blended with rare tobaccos

Sr., was raised in a home that also served as the Fuente cigar factory in Tampa. Carlos Jr. was literally born

that are aged for a very long time, and only 25 of Fuente's finest craftsmen are deemed

into the business as well. In 1980, Fuente relocated to the Dominican Republic. After building a family plantation in Caribe, the company began producing shade-grown silky

qualified to hand roll the Opus series. As a result, Opus X cigars are not produced in sufficient numbers to meet the demand of tobacconists and cigar lovers, and are considered a rare delight. Opus X and other Arturo Fuente cigars are produced in the Dominican Republic by the Fuente family, third- and fourth-generation cigar manufacturers. The Fuente family 's tobacco roots go back 14 1ValueRich Magazine Fall2004

Carlos Fuente Sr. and Jr. at the Caribe plantation.

rosado wrapper leaves that are recognized as the best in the world. All of the tobaccos blended into every Opus X come from Chateau de Ia Fuente, the crown jewel of the Fuente family. $7.50- $25 each www.cigarfamily.com www. val uerichonline.com

Graham Hawkes is making this huge territory more accessible with his Deep Flight Aviator, a state-of-the-art two-person underwater flight submersible. Deep Flight Aviator is the newest craft in the Deep Flight series of winged submersibles. Th e two-seat exploration craft was built literally to fly underwater at depths of up to 1,000 feet. While conventional submersibles are slow, bulky, stiff underwater balloons, Deep Flight Aviator is a lightweight, high powe red composite airframe with wings, thrusters and flight controls. The Deep Flight Aviator is positively buoyant and will float on the surface until it is powered down in a dive. It is designed to cruise easily with large marine animals at typically 4-5 knots for

long periods of time and has a maximum speed of up to 10 knots (four times faster than conventional craft), giving it the range and speed to operate from an anchorage or shore base. Hawkes, an internationally renowned ocean engineer and explorer, also runs the Sub Sea Aviation School for serious ocean enthusiasts, explorers and adventurers. His goal is to foster a small, dedicated band of pioneering individuals ready to exploit the new freedom of undersea flight. The next Deep Flight Sub Sea Aviation School, three days of intensive training to be licensed to fly the Deep Flight Aviator, will be offered in the spring of 2005 - most likely in Bermuda . $1 .7 million and up www.deepflight.com

Look Ma, No Cans According to John Brock, lnBev's CEO, "When lnBev came up with the idea of developing an in-home draft-beer dispen sing appliance, Philips, one of the world 's biggest electronic companies, was a natural choice. Philips shares with lnterbrew the objective of developing innovative products designed to improve daily life:' We agree, John. Life will be significantly improved with draft beer in the kitchen .

Have a kegger in the kitchen. There's nothing like a delicious glass of draft beer freshly drawn ... at home. PerfectDraft is a new appliance with a real tap handle, internal cooling system, pump and 6-liter light metal keg. It keeps beer at its optimal temperature of 37 degrees Fahrenheit. Once PerfectDraft is installed, the beer stays fresh for four weeks. The system was developed jointly by lnBev (formerly lnterbrew), a leading global brewing company, and Royal Philips Electronics. www.vrex po. net

PerfectDraft was launched in Belgium with Stella Artois and Jupiler beer and a plan to gradually roll the product out in other countries. Now that lnterbrew and AmBev have merged to create the world's premiere brewer, lnBev, maybe we'll see PerfectDraft in the U.S. sooner- serving its wellknown Bass and Beck brands. Cheers! www.inbev.com Fa ll 2004 ValueRich Magazine 115

Pianissimo Steinway pianos are reputably the world's finest musical instruments. Steinway still makes its pianos the way it used to- approaching each instrument as a handcrafted work of art. In a tradition that is almost as old as the 150-year-old company itself, Steinway has produced a series of one-of-a-kind art case pianos in partnership with renowned artists and furniture craftsmen. One of the most recent art case Steinways is a stunning satin-finish cher-

Inquire about the James Schriberdesigned Pianissimo Steinway grand piano or receive a free color brochure about other unique Steinway Art Case pianos and the artists who designed them by calling 718-204-3116.

www.steinway.com

ry veneer Model B grand piano named Pianissimo, designed by James Schriber, an acclaimed New Milford, Conn., furni ture designer. Pianissimo is the perfect piano for a large music room. Its warm bookend cherry finish is ideal as the focal point for a piano quartet as well as the room's decor. The lid, formed by three cherry sections trimmed in ebony, rests on the piano case without an overhang. A one-piece carriage featuring elegant split-cherry lyre-shaped legs supports the case. Other distinctive design elements include cherry dampers with clear coat lacquer, hardware finished with a custom patina, a maroon piano plate and coordinated maroon leather bench.

James Schriber James Schriber has been a guest lecturer at prestigious design schools from Rhode Island to California. His work has been exhibited at the Museum of Fine Arts in Boston, the Chicago International New Arts Exhibition, and the Renwick Museum in Washington, D.C. An extremely accomplished furniture maker, Schriber began his career as a woodworker in a small Vermont shop. From there he went on to the Rochester Institute of Technology, where he met designers such as Jere Osgood and Wendell Castle and began developing his own personal style of combining woodcraft and art.

16 JValueRich Magazine Fall2004

www.va luerichonlin e. com

Although the Lugano, Switzerlandbased watchmaker no longer has its headqu arters in historic Havana - it exiled itself to Europe after Castro took power more than four decades ago - Cuervo is still producing the exquisite watches that made it an international institution in its

"Esplendidos" 18 1ValueRich Magazine Fall 2004

Cuervo y So ri os The Revival of Famous Havana Timepieces

Torpedo "Puls6metro"

Havana heyday. After several years of maintaining a low but dignified profile, Cuervo is very much back in the watch business today. The company has literally been born again - currently offering a completely new line of watches: Esplendido, Prominente

"Prominente"

"Torpedo GMT" www.va lu eri chonlin e. co m

institution throughout the Ame ricas for distributing one of the world's most coveted brands of clocks and watches. Its sterling reputation earned the boutique the appellation "The Pearl of the Caribbean:' At the height of its fame in the late 1940s, Cuervo enjoyed the same cachet and brand recognition as Tiffany in New York and Cartier in Paris, and its sales ledgers held names like Einstein, Caruso, Hemingway, Churchill and Gable. This new line of watches brings back the glory days of Cuervo y Sorbinos. In a tip of the hat to their proud Cuban legacy, every Cuervo watch is packaged in an elaborately constructed humidor made of Pish cedarwood, which can hold 25 to 50 cigars. The watches are precision-perfect mini works of art, each one in a case carved from a solid

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and Torpedo -

all named after

the cigars that have become synonymous with Havana. Cuervo y Sabri nos watch owners truly understand the significance of ret urning to the exciting world of 19thcentury Havana, at a time when it was a Caribbean mecca for adventurers, intellectuals, and bon vivants. It was there in 1882, on the Cuban capital's desirable Fifth Avenue, that Armando Rfo y Cuervo and his brothers opened and developed La Casa, a watchmaker and jewelers boutique founded by their Uncle Ramon- hence the name Cuervo y Sobrinos (Cuervo and nephews). The boutique proved so successful that within half a century, the family opened three additional branches catering to an eager European clientele - in Baden, Germany; Paris; and Chaux de Fond, at the heart of the Swiss watchmaking industry. The Cuervo house became a respected www.vrex po.net

block of steel or gold, and with its own breathtaking enamel dial. The Esplendidos collection is inspired by 1940s art deco styles in a rectangular casing, framed in curved brackets that evoke the shape of the base of the Eiffel Tower. Its sculptured case is available in pink gold or steel, as well as in diamond and sapphire configurations for women. The Prominente, named after the largest and most important cigars ever produced in Havana, has two faces featured on its ornate dial in recognition of the days when Havana was a magnet for international jet setters, who kept one eye on Havana time and one eye on the continent they came from . An independent movement controls the second face that maintains time from a second time zone. The Torpedo, like the rounder cigar of the same name, is an attractive round-

faced watch . It is impressive without being ostentatious or excessive in size. The Torpedo comes with a variety of configurations and faces, including GMTs and chronographs. If the connection between Cuervo watches and Havana cigars has you scratching your head, rest assured that the connection is all part of a very deliberate company policy. The watches hark back to a nostalgic time - when Havana was synonymous with elegance and refinement, wrapped in the down-tempo rhythms of the Caribbean. A Cuervo spokesman explains the concept best: "It is not by chance that the cigar was born in Havana or that Havana is the birthplace of Cuervo y Sobrinos and its sophisticated style. We are packaging our prestigious watches in fine humidors to stress to customers and collectors the parallelism between the pleasure of smoking a fine ciga r and enjoying the old world quality of our timepieces. "It is no accident that these new watches have the names of different cigar bands. To smoke a good cigar produces the same satisfying sensation of owning one of our watches. Nobody has ever been seen rush ing about and getting upset about something while smoking a cigar. To smoke a cigar requires time. It cannot be done quickly or in a hurry- just as the exquisite beauty of Cuervo y Sobrinos timepieces are to be savored as objects of personal pleasure. "While we're no longer headquartered in the old watchmaker's shop on Havana's Fifth Avenue, we're happy to again be bringing to life these new works of art, destined to become collectors' items. Cuervo y Sobrinos is again taking center stage among the world 's most famous watch-producing houses, marked by these details of high quality of life:' VR www.cuervoysobrinos.com Carrazzo Jewelers: 954-523-5237 Fall 2004 ValueRich Magazine 119

â&#x20AC;˘ By David Willson

In the decade since she joined CNBC, Maria Bartiromo has emerged as the network's most recognizable personality. Now she is the new host of The Wall Street Journal Report. The pa iri ng appears to be a marriage made in syndication heaven. The Journal is getting a very popular television journalist with a reputation for exhaustive research, outstanding business acumen and a nose for news. Her recent success as a well-connected and persuasive interviewer certainly will add ext ra dimension to the program's format. For Barti romo, The Wall Street Journal Report with Maria Bartiromo is a timely cobranded plum. Available weekends in syndication through network affiliates

in over 90 percent of the country, it is the perfect opportunity for her to showcase all of her talents. "I want to make it the Meet the Press of business;' she says. Anyone who is familiar with this dynamic doyenne's history knows that t he odds are she'll make it happen.

viewers on exhilarating three-minute tours of market activities. These highenergy reports often included analysts' comments, unusual activity at a trading post, projected foreign market impacts and the occasional brief interview. Many in the predominately male investment community were smitten with her exotic Mediterranean looks. The New

. . . favorable comments by Ms. Bartiromo during her Midday Call segments would immediately raise a company's stock an average of 43 points.

Bartiromo first appeared on the fledgling CNBC network in 1993 - just as individuals began dabbling in the markets en masse. Her ability to convey dense financial information in everyday language struck a chord with the new audience. But it was her rapid-fire reporting f rom the floor of the New York Stock Exchange that began to attract admi ration on Wall Street. Moving quickly from one item to the next, Bartiromo would take CNBC 20 IValueRich Magazine Fall2004

2001 study conducted by professors Clifton Green and Jeffrey Busse of Emory University's Goizueta School of Business, favorable comments by Ms. Bartiromo during her Midday Call segments would immediately raise a company's stock an average of 43 points. Apparently she still has the mojo, even though today's market is nowhere near as energetic. When she recently switched to a new hairdo with bangs, the Dow jumped 42 points. Equity traders received hundreds of calls from clients talking about Maria's hair. In an article about the phenomenon, New York Daily News columnist Lloyd Grove coined the phrase "Bartiromo Bang Effect:' All silliness aside, one does not generate this level of interest in the business world by being merely a

York Post took note and dubbed her the

"Money Honey:'

pretty face. Ms. Bartiromo is a meticulous researcher and tenacious reporter. "I'm

Bartiromo may have been hoisted on a pedestal, but she showed time and again that she could stand toe to toe with the best of them. Of course that just made her even sexier. If Helen ofTroy had a face that launched a thousand ships, Maria Barti romo has probably kept a thousand public compan ies sailing. Acco rding to an early

very much the personality that doesn't trust a lot of people with my stuff;' she says. "I want to look it over, dot the i's and cross the t's myself. "I loved covering the exchange;' she explains. "I would arrive in the morning and start calling all of my sources - different trading desks, CEOs, CFOs - to learn what they saw as most important www.val uerich onlin e.com

for that day. I would put together a list of the most important items to watch and how I thought the day might play out. And then I would just ad-lib it. There is no teleprompter on the floor of the New York Stock Exchange and no one is there to tell you what to say and do. It's very much a position of independence. "I had to think on my feet;' she emphasizes. "At any moment something could develop around any number of posts, and I had to figure it out. At the exchange, I was writing and reporting everything that I came up with:' In fact, Bartiromo was known for her quick reactions on the trading floor. She excelled during times of craziness and made her reputation by being able to report perceptively about it on the spot. "I thrive in situations like that. I really do;' she says. "I could be in the middle of a storm and there's all this noise around me, and I won't lose focus. So the trading floor was something that came easy to me, and something I loved:' Yet she has now left all of that behind in favor of concentrating on her co-branded shows, Closing Bell with Maria Bartiromo and the new Wall Street Journal Report with Maria Bartiromo. "It was a huge decision for me to give up Squawk Box. But I realized that at this point in my career, my interviewing techniques are where my strengths lie;' says Bartiromo. "I've been able to deliver phenomenal guests on Special Report with Maria Bartiromo and my other shows:' This is not braggadocio on Bartiromo's part. George Soros, who would be a prime guest for any interviewer, has been on her show more than once. The diverse list of interviewees on Special Report also includes AIG CEO Hank Greenberg, actress Edie Falco, U.S. Attorney General John Ashcroft, the ambassadors to Saudi Arabia and Syria, King Abdullah of Jordan, and the singer Prince. When Sandy Weill stepped down as chairman of Citigroup, 22 1ValueRich Magazine Fall 2004

he gave Bartiromo the exclusive. Her ability to attract personalities with reputations for being closed-lipped, even reclusive, is probably due to her interviewing philosophy and style. "My goal when interviewing is to solicit information, but not in a 'gotcha' way. You're never going to get any information when a person thinks you're attacking them;' says Bartiromo. "Generally speaking, I wish people well. I'm happy when people do well. That's just my personality. But if there are tough questions -like in the case of Ken Lay - I think it's appropriate to say, 'O.K., look, the company collapsed, the shareholders lost all of this money ... how do you feel?' First you start with how they're feeling, and then you can go into 'What kind of responsibility do you take here?' I let the per-

l've always been married to business. I love business information. It gets me jazzed and excited to talk about the markets and money:'

I feel like The Wall Street Journal Report is almost a network show. It has terrific time slots in some of the biggest markets. This show is really the biggest opportunity for me right now, and I'm going to embrace it with everything I have. I'm going to really try to make it great;' she says. When asked how she sees her career in five to ten years, she takes a moment to reflect. "I 've always been married to business. I love business information. It gets me jazzed and excited to talk about the markets and money. I don't know why that is. It's not like I grew up in a family of big business people. I grew up in a very humble household. But I took to it and I love it. "Over the last four years, Special Report really enabled me to branch out, and I liked it. I was talking to heads of state, and I enjoyed it. So it forced me to recognize that maybe I'm not just interested in reporting about business- maybe I do eventually want to break out of that mold. That certainly is a real possibility:' And what drives her to be so tenacious about the details and put in so many long hours? "Competition;' she says. "What drives me is a love for what I do and a competitive fire in

son have the floor to say what happened - not in a way that I'm saying 'I know all

my belly. "My job makes me happy;' she adds. "I

the answers already and whatever you say I'm not going to believe you anyway,' but truly to say 'Look, this is where we are at this point. We've got investors watching

remember one day I wasn't feeling great, so I took the day off. And that day the mar-

and they want answers, so let's figure it out: That's always been my goal. Get the information. You're never going to get the truth if you go at people in an attacking way:' The Wall Street Journal Report with Maria Bartiromo is her biggest opportunity to

date. The nationally syndicated show will put her in many more markets than cable. "There are people in Iowa that may never have seen me;' she says. "It's an opportunity for me to introduce myself as someone who is trustworthy and who can deliver.

ket was really strong. It was up big. And I was so disappointed that I was home. I remember thinking I should have gone in even if I wasn't feeling well:' However, when it's vacation time she loves to go to the Canyon Ranch Health Resort in Tucson, Arizona, with husband Jonathan Steinberg. They have been going there every January for ten years to start the year off right. "What I love best about the Canyon Ranch in Tucson is the hiking. I love, love, love to hike. It's one of the things that really helps me to relax and feel rejuvenated;' she says. "By the time we get back, we will www. va l ueri chonlin e.co m

have done ten straight hikes:' While at the Va/ueRich magazine photo shoot, she clearly enjoys the process of changing gowns and jewelry for each shot and then pirouetting before the camera. When photographer Thomas Werner comments that she moves like a model, she says, "I was a dancer when I was younger.

"Obviously, you can have a great prod-

about you, it would be hard to generate dollars moving into that stock. It's unfortunate, because I th ink that the smalland mid-cap universe often offers terrific

"''m going to be writing a new regular column about money in Reader's Digest magazine;' she says. "This is for a broad general audience, not like the audience you [ValueRich] are focusing on. My first column will be in October about the impact of interest rates.

I was all girl:' That girl has grown into a driven pro-

opportunities for investors- but how do you find out about them? So, I think what Va/ueRich is doing is terrific:'

"It's an opportunity for me to go indepth on certain subjects. I'm able to go in-depth with my preparation for inter-

fessional and an astute judge of market information. Our conversation eventually swings to the Va/ueRich concept of helping small-cap and micro-cap public companies com m unicate and facilitate

Bartiromo is no stranger to publishing and writing. She wrote monthly columns for Individual Investor and Ticker magazines for nine years and she has been published in Newsweek, Town and Country, Registered

their investment banking needs. She comments, "The way everything has played out with the whole research situation on

Rep and the New York Post. Harper Collins

views, but when I was live on CNBC's Closing Bell, it was hard for me to give more than five minutes on one story. And obviously, sometimes we need to go indepth much more, so I love writing:' Where she finds the time to write, we don't know. All we can say is whenever

Wall Street, it's probably a challenge for some of the small- and mid-cap compa-

Nuggets and Make Money in Any Economy,

nies. They're not necessarily going to get the coverage that t hey need.

www.vrexpo. net

uct and be a great company, but if no one is covering you and telling investors

published her book, Use the News: How to Separate the Noise from the Investment

in June 2001. The book was on the bestseller lists of The New York Times, The Wall Street Journal and USA Today.

you find a little extra time, Maria, we'd love to have you write a piece or two for your biggest fans - ValueRich readers, those professionals in the public-company trenches. V R

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123

Van Cleef & Arpels

By Karen Willson

Golden leaves intertwined with flowers of sapphires, diamonds and rubies ... a heart of diamonds surrounded by petals of rubellite ... colorful gems and luminous tropical flowers forming earthly delights: Van Cleef & Arpels has once again created an exquisite jewelry collection, called Hawaii, that will transport any woman to the fantasy island of her mind. Clockwise from top: Nine-petal ring in yellow gold with pink sapphires surrounded by deep purple amethyst petals; flower

clips with pink sapphire centers surrounded by six purple amethyst petals; five-petal ring in yellow gold with orange sapphires surrounded by amethyst petals; bouquet clip in yellow gold with flowers of pink sapphire and amethyst. 24 1ValueRich Magazine Fall 2004

www.valuerichonl i ne.com

ing celebration of one person's affection for another, in the ancient tradition of the Hawaiian Islands. Gems are crafted into flowers using different colors of sapphires or diamonds surrounded by petals of amethyst, citrine or rubellite. The collection includes rings, pendants and earrings, as well as clips that can be converted into hair or fashion decoration or brooches. Van Cleef & Arpels has created special settings for the Hawaii collection : halfclosed for the flower centers and a single prong at the outside edge of each petal. The petals, surrounded by open space, appear to be attached to the hearts of the flowers. As a result, the stones and gold motifs reflect light from every part of each flower. For decades, Van Cleef & Arpels has been known for its innovative transformable jewelry designs, allowing each woman to create her own look. Earrings can have detachable drops, and bracelets are designed to link together to form a necklace. Brooches can become pendants or hair clips. In 1938, the PassePartout was introduced -a snake chain (flexible gold band) and two flower clips composed of colorful precious stones that could be worn as a necklace, bracelet, clip or belt ornament.

The romance of Hawaii - what could be more fitting for a company that began with a love story? When Alfred Van Cleef, son of a diamond dealer from Amsterdam, and Estelle Arpels, daughter of a dealer in precious stones, fell in love just before the dawn of the 20th century, they created a jewelry dynasty like no other. Van Cleef & Arpels was born in t he heart of Paris, at 22 Place Vendome, in 1906. For nearly a century, jewelry created www.v rex po.net

by Van Cleef & Arpels has graced some of the world's most remarkable women: Jacqueline Kennedy, Elizabeth Taylor, the Duchess of Windsor, Princess Grace and Queen Sirikit ofThailand. The name of Van Cleef & Arpels became legendary early on and is renowned throughout the world for its craftsmanship, exceptional stone quality and unique designs. The latest collection is a stunning array of tropical island elegance - a welcom-

Van Cleef & Arpels is also well known for its "mystery setting" - a technique in which prongs are hidden underneath gemstones. This unique process is extremely labor intensive: approximately 90 hours per ring and 300 hours for a brooch. In Discovering Van Cleef & Arpe/s, author Anne-Marie Clais says this setting "transcends matter itself and celebrates design: it comes to life and it is fed by light:' From a small shop in Paris to fine stores all over the world, Van Cleef & Arpels continues to wow us. Take a look at some of these recent creations, and dream a little dream for me. VR

Information: www.vancleef.com Fall 2004 Value Rich Magazine ! 25

Blue sapphire and citrine in yellow gold collection.

Diamond and rubellite in platinum collection. www.vrexpo.net

Fall 2004 ValueRich Magazine I 27

The Riva mystique was born in 1842 when a young fisherman named Pietro Riva started a modest business repairing storm-damaged boats. From his base in picturesque Sarnico, a small northern Italian town on the banks of Lake lseo, Pietro soon expanded the scope of the Riva business to include boat building. From the start, Riva boats were known for their exceptiona l quality and craftsmanship, thereby earning a prestigious reputation, that laid the foundation for the Riva legend. In the 1880s Ernesto Riva, one of Pietro's sons, took over the Riva yard . While maintaining the tradition of impeccable quality and craftsmanship, Ernesto added another dimension to the Riva product: innovation. He began by fitting piston engines to Riva boats for the first time, and built larger boats to carry passengers and cargo. Ernesto's son, Serafino, succeeded his father and ended the production of larger boats, shifting the focus of the company to smaller, outboard engine boats. It was at this time that Riva became known for producing fast performance racing boats, achieving speeds never before seen on water. This racing tradition carried on through the first and second world wars with Riva achieving a series of successes in national and international motorboat racing. In tandem with racing, the company initiated the production of pleasure boats. From the outset, Riva pleasure boats were immensely popular not only for their quality but also for their luxury and elegance. In the 1950s Carlo Riva took over the yard and created a range of wooden boats with such exceptional quality, style and elegance that the Riva brand became a worldwide sensation. Francesco Frediani, Riva Sales Manager, puts it plainly: "Carlo Riva invented many years ago the pleasure boat market in Europe:' www. vrexpo. net

The 44' Rivarama, above, has a luxurious interior cabin and a maximum speed of 40 knots. Opposite page, stainless steel Riva logo from an early Riva boat.

Certainly many of the leading celebrities of the day would agree with Mr. Frediani. Brigitte Bardot, Dina de Laurentiis, Richard Burton, Sean Connery, Peter Sellers, Prince Rainier of Monaco, the Shah of Iran and King Hussein of Jordan are but a few of the luminaries who owned Riva boats

in the 1950s and '60s. Among the most sought-after status symbols at that t ime, Riva boats had no equal. Today, Riva boats continue to enjoy exalted status, in part because many of the same painstaking boatbuilding techniques and principles developed during Fall 2004 Value Rich Magazine I 29

The Riva 85' Opera will debuted at the Monaco Boat Show, September 2004.

the company's early years continue to be employed. "To make a Riva boat takes a lot of time and energy; it's a lot of hands-on work;' says Steele. "That's the old-fashioned way of doing it and they do it very well. The craftsmanship is exquisite and the execution is flawless. This is, after all, one of the most famous builders in the world:' Every Riva has an individual personality expressed through meticulous attention to detail. The lines of the boat, the carpentry, the chrome, the lacquer-work, the leather, the fabrics and the fittings are all of the best quality and demonstrate impeccable taste. Riva yachts' refined, elegant and timeless beauty on the water is . backed up 30 IValueRich Magazine Fall 2004

with state-of-the-art design and performance capabilities. The well-known structural quality of Riva hulls results from the use of the very best resins, whose special cream shade is a Riva signature. Hulls are reinforced with Kevlar. Wooden bearers under the engines are filled with foam to help dampen vibration. The Riva tradition The sumptuous lounge of 85' Opera.

Photos courtesy of Ferretti Group

of attention to detail is focused on providing the best possible boating experience. In May 2000, Riva joined forces with another remarkable boat company, Ferretti Group, with an eye toward expansion . A world leader in the design, production and sales of luxury yachts, Ferretti Group has 1,900 employees and 15 shipyards - 14 in Italy and one in the United States, each adhering to the most advanced and innovative standards of international nautical builders. www. val ueri chon lin e.com

The recently redesigned 85' Opera comfortably accommodates eight passengers plus crew and has a top speed of 34 knots.

Joining Ferretti Group's stable of legendary yacht brands Ferretti Yachts, Pershing, Bertram, Apreamare, Mochi Craft, Custom Line and CRN yielded immediate benefits to Riva. Buoyed by Ferretti Group's immense resources and global sales distribution, Riva has more than doubled its annual production (from 22 to 49 units per year) in less than three years. The opening in January 2004 of a new Riva shipyard in La Spezia, set for the production of yachts longer than 60; www.v rex po.net

presents further growth potential in a worldwide market. The number and type of models have also increased, and Riva currently offers 11 different models ranging from 33' to more than 1oo: During the first half of 2004, Riva introduced three brand-new models: the 33' Sunriva, 52' Rivale and 85' Opera. The Sunriva and Rivale will make their U.S. debuts this fall, but arguably the Riva stirring the most buzz these days is a new 115' model. The biggest Riva yacht ever

built, the 115' is slated for completion in spring 2005. Norberta Ferretti, chairman of Ferretti Group, commented on the new Riva 115' saying: "It is a double challenge. In the one hand, towards the market that rewards the shipyard's choices from season to season. In the other hand, it is also a challen1e for the Riva craftsmen, who are askl d to produce a yacht over 35 meters wi h the same quality, style and refinemen~ standards that have made this Fall2004 ValueRich Magazine 131

The 33' open cruiser Sunriva is all about stylish fun. It will make its American debut this fall at the Ft. Lauderdale Boat Show.

brand a legend:' With their centuries-old tradition of delivering the highest-quality yachts in the world, there's no doubt that Riva craftsmen will easily meet the challenge of constructing the new 115'. Addressing the market challenge in the U.S. is the dynamic combination of Ferretti Group USA, the

The Sunriva's sculpted hull and coachwork are reminiscent of a fine Italian sports car.

www.vrexpo. net

Italian builder's U.S.-based marketing and customer service arm, and MarineMax, Inc. (NYSE: HZO), Ferretti Group's exclusive dealer in North America. The nation's largest recreational boat retailer, MarineMax makes finding and purchasing one of these jewels of quintessential Italian engineering and design easier than ever. "Our partners at MarineMax have 67 retail locations across the country, so buyers have no problem finding Ferretti Fall 2004 Value Rich Magazi ne I 33

The new 52' Rivale, above and below, will cruise six to paradise at a top speed of 40 knots in stylish luxury, fully loaded for island adventure.

Group in the u.s.;路 said Bob Fritsky, CEO of Ferretti Group USA. In terms of foreign parts and customer service, Ferretti Group USA has overcome these issues by establishing a unique Product Manager System. Comprising a collection of marine industry experts, each assigned to a particular Ferretti Group brand, the Product Manager System empowers these individuals to do whatever it takes to satisfy U.S.-based customers. This commitment to superior customer service extends throughout the entire life cycle of Ferretti boat ownership. For Riva and its owners - people who want the best, expect the best and live the best- the legend continues ... VR www.riva-yacht.com 34 1ValueRich Magazine Fall 2004

www. valu eri chonlin e.co m

44' Rivarama: the ideal love cruiser for a couple.

36 1ValueRich Magazine Fall 2004

www. va l uerichonline.c om

He views the envelope with anticipation. As an influential businessman, he receives many such invitations - and often dreads their arrival. They frequently portend making an obligatory appearance at dreary black-tie affairs or catty cocktail parties for the socially prominent. But this invitation is different. He recognizes the source immediately and his pulse quickens as he eagerly rips open the flap to discover what lies within. It's from his car dealer. He has good reason to be excited. His car dealer is Champion: Champion Porsche, Champion Audi, Champion Motorsports and, perhaps most distinctively, Champion Racing in Pompano Beach, Florida. They are the No. 1 Porsche dealership in the world, and months away from opening the largest and most advanced Audi dealer facility in the world . The invitation is to a coming-out party for the Porsche 997 - the significantly redesigned 911 series for 2005. When Champion holds an event, it's no wine and cheese gathering at the dealership. This one will be a catered affair at the Boca Raton Club, and the guests are strictly A-list. Champion's customer list includes some of the wealthiest people in the world. The company's reputation has been bui lt on providing the ultimate sales and ownership experience for the ultimate enthusiast. It is not unusual for Champion's customers to hop in their private jet and fly to South Florida to purchase Porsches or high-performance Audis, rather than shop at local dealerships. How does Champion attract and hold so many high-profile customers? Champion's unique business proposition is multifaceted, but one very important aspect is its private club-like esprit de corps. "Celebrities, self-made millionaires and company CEOs come here all the time just to hang;' says Champion Vice President Don Skuta. "This is someplace www.v rexpo.net

Fall 2004 ValueRich Magazine 137

JJ Lehto, Emanuele Pirro, team owner Dave Maraj and Marco Werner with Le Mans trophies.

where they can relax, be themselves and talk about cars. "Our staff has very little turnover;' Skuta adds. "We've got salespeople that have been here for ten years. They end up becoming friends with the customers. Many of them have owned the same cars themselves over the years, so they have a common bond:' Another big attractor is the racing. Champion Racing mounts two top teams, respected not only for their point ran kings but also for their unflappable and professional demeanor. Champion Racing is Audi America's factory racing partner - racing the ADT/ Champion Audi R8 Le Mans Prototype in the American Le Mans Series and the 24 Hours of Le Mans, and the Champion Audi RS 6 in the Sports Car Club of America's SCCA World Challenge GT Series. Champion Racing has rocketed to world prominence since its beginning in 1993. Originally racing Porsche 911 G2s as a private team, Champion developed its winning ways at the grueling 12 Hours of Sebring, the Miami Grand Prix and the 24 Hours of Daytona. By 1998 it was racing the Porsche GTl, challenging the Porsche and Audi factory teams at Sebring. In 2000, Champion debuted its first pro38 1ValueRich Magazine Fall 2004

totype car, a Porsche Lola. But the real success began with the introduction of Champion's Audi R8 Prototype program in February of 2002. The team won third in their class at the 2003 24 hours Hours of Le Mans and came in second in the American Le Mans Series points championship with four wins during the season. This year they were third again at Le Mans. At the end ofthe race, the Champion team proudly stood on the podium as the only American team in an aii-Audi clean sweep of the race. But more than the position, it was the way they won the race that caught everyone's attention. Early in the race, the Champion Audi car skidded through oil and sustained considerable damage upon impact with the barrier. Driver JJ Lehto was convinced they were definitely out of the race, and had to be coaxed by technical director Brad Kettler to quickly get the car back into the pits for repairs. A good move, because once the seriously damaged car was brought in, the Champion crew, in cool fashion, repaired it in an amazing 31 minutes and gave the drivers as good a car after the impact as it was before. The car finished the race at a winning pace, climbing back from 41st place to eventually finish third.

Photos courtesy of Champion www. va lu erichonlin e.com

JJ Lehto puts the RS through its paces during Thursday Practice prior to the 24 Hours of Le Mans. www.vrex po.net

Fall 2004 ValueRich Magazine 139

Afterward, Vice President of Audi of America Axel Mees commented: "The Champion Racing Team exhibited very high standards and . should have been number one. Audi of America is proud to be associated with such a professional team as well as Dave Maraj's Audi dealership in Florida:' A number of enthusiasts including customers, sponsors and invited guests accompanied the team toLe Mans, as they often do with other races. They joined the crew for lunch at the hospitality tent and had access to the pits. They were also on hand to celebrate after the race. "The Champion team is respected worldwide by all of the teams;' says longtime Champion customer Danny Chauvier. "The factory Porsche team comes over to visit all the time. They think the world of Champion, even though they race Audis:' Champion's other racing venue is the SCCA World Challenge GT Series, a professional road-racing series for productionbased sports cars and sedans. Beginning with a Formula 1-style standing start, the races are an all-out 50-minute sprint to the checkered flag. A wide range of vehicle types, including Dodge Viper, Chevy Corvette, Porsche 911, Champion's Audi RS 6 and the Cadillac CTS-V, compete in this scrappy format, which is rapidly becoming one of the most popular spectator draws in racing. The SCCA technical administrator adds weight and uses air intake restrictors to level the playing field for the widely divergent cars so that the races are driveroriented. If a car wins a race, weight is added. Those finishing at the back of the field have weight taken away. It's a controversial format, but it keeps the races exciting. The Cadillac CTS-Vs are factory-built and raced. Cadillac is expending seemingly unlimited funds (estimated at twice as much as Champion Racing) in an all-out bid for the marketing value of winning the 2004 SCCA championship. However, the Audi team was five points ahead in neck-and-neck competition in the Manufacturers' Championship at the 40 IValueRich Magazine Fall2004

time of this writing. Though technically an Audi factory team, Champion Racing builds its racing RS 6s at its state-of-the-art facility in Pompano Beach, Florida. The RS 6, with its Quatro drive, is by far the fastest car off the line. It can achieve 0-60 mph in an unbelievable 2.7 seconds. Champion Racing's Audi 54 and RS6s have effectively dominated SCCA cham pi-

onships since 2000-which isn't supposed to happen given the weight handicapping. After winning three drivers' championships in the 54, driver Michael Galati won the 2001 and 2002 drivers' championships in the RS6, and driver Randy Pobst took the title in 2003. Champion's Audi cars won the GT Manufacturers' Championship in 2002 and took second in 2003. There is no question that Audi is a great www.valu erichonlin e.co m

Randy Pobst drives the Champion Audi RS 6 at the 2004 Road America Speed World Challenge GT, where the team placed second.

factory partner and Champion's drivers are some of the best in racing, but their consistently strong showings in Le Mans and SCCA racing also reflects well on the management and tech nical proficiency of the Champion team, which has been drawn from 11 countries around the world . A trip to the Champion Racing facility in Pompano is impressive. To begin with, it is spotless - so clean that one might www.v rex po.n et

prefer it over a hospital as the place to have surgery. One side of the large open bu ilding complex is devoted to the Le Mans R8, and the other the SCCA RS 6s. Champion's highly proficient technical crew can assemble, test and repair the cars from the ground up here. The tools and equipment are in place to take care of everything down to the smallest detail, including composite

body manufacturing and graphics. It's obvious that Champion Rac ing's philosophy involves meticulous planning and uncompromising execution. In preparing for the 24 Hours of Le Mans, the company duplicated its operation overseas with all new tools, trucks and requisite equipment. Technical Director Brad Kettler's philosophy is "Think of everything -then think some more:' Complete manFall 2004 ValueRich Magazine 141

The Champion Racing Audi RS team beat adversity to finish third in the 24 Hours of Le Mans, winning the respect of the racing community.

ufacturing proficiency and a high level of preparedness came in handy at Le Mans. It made the difference between being knocked out of the race and celebrating on the winner's podium. All of this is a reflection of owner Dave Maraj's vision . Maraj, born in India, originally managed his family's precious metals, diamond and jewelry business in Trinidad in the 1970s, before moving to Florida a decade later and purchasing the 42 1Value Rich Magazine Fall 2004

Champion Motors dealership in 1988. "Dave Maraj does it 100 percent or he doesn't touch it;' says Chauvier, as he is explaining why he deals exclusively with Champion Porsche. "The amount of enthusiasm Champion brings to the brand that they sell runs all the way down to the guy who cleans the car. Other highticket dealers don't have the same respect for the brand. They view the cars as just transportation:'

Visit Champion's Porsche and Audi dealerships or the Champion Motorsport complex and you will see spotless highquality facilities run by competent professionals. Maybe it has something to do with Maraj's background in precious metals and jewelry, but everywhere you look there's polished metal, granite and glass. Obviously, these are not your everyday auto dealership and parts company even the outdoor lighting would be more www.valueri chonline .com

and motorsports parts company. Champion Motorsport provides aftermarket performance parts and accessories for a wide range of exotic and luxury sports cars, including Porsches, Ferraris, Corvettes, BMWs, Vipers and Audis. It develops and markets a host of products -from custom wheels, body kits and interior upgrades to suspension and exhaust systems and performance enhancements. Even though Champion markets its distinctively styled wheels and performance products through other Porsche dealers, it is a measure of the company's uniqueness that its dealership customers can modify a new Porsche with parts directly from the factory, even have them specially designed. And with Champion's racing heritage, many customers will only buy and maintain their cars at Champion, because it is perceived as being the best. It is just one more step from that relationship to following the Champion race team to unique venues like Le Mans, Sonoma, Laguna Seca, Lime Rock Park, Sebring, Road Atlanta . After all, a trip to Sonoma is a trip to the Napa Valley, and you can take in a round of golf at Pebble Beach while visiting Laguna Seca. Followers of Champion Racing are a different breed than NASCAR fans, but they are just as ardent. They can't wait fo r that invitation to come in the mail. VR

fitting for a private club than a car lot. Maraj successf ully built Champion Motors into the No. 1 Porsche dealership in the world and one of the finest Audi dealerships in the United States. He has been involved in motor sports throughout his life, starting at age 18 when he raced rally cars on the island of Trinidad. His philosophy is "We race what we sell:' Maraj uses his Audi R8 and RS6 race teams as an extension of marketing his dealerships www.v rex po.net

Fal l 2004 ValueRich Magazine I 43

2005 Porsche 911 Carrera S More power, stunning technological innova-

The introduction of the 2005 Porsche 911 Carrera S also marks the first time

mph in 4.6 seconds and hits 99 mph in 10.7 seconds, and its engine provides such strong torque that in fifth gear the Carrera S can accelerate from 50 to 75 mph in just 6.1 seconds. An "S" designation has a very special meaning at Porsche, signifying a unique

Carrera S, which also comes with the new Porsche Active Suspension Management technology, larger brakes with red calipers, larger wheels, standard Bi-Xenon headlights, a sports steering wheel, aluminum-look interior trim and a silver-col-

since 1977 that Porsche powers the 911 with a pair of engines.

model, not a mere trim upgrade or option package. The first Porsche to wear an "S"

equipment. And there's much, much more

The 2005 Porsche 911 Carrera is propelled by a 3.6-liter flat six-cylinder engine with 325 horsepower and 273 pound-feet of torque while the 2005 Porsche 911 Carrera S draws on a 3.8-liter flat six that provides 355 horsepower and 295 poundfeet of torque. The 3.6-liter Carrera will do 0-60 mph in

badge was the 1952 356 equipped with the 1.5-liter "Super" engine. Perhaps the most famous "S" model in the company's history was the 911 S launched in 1967, though modern Porsche enthusiasts might tell you their favorite is the 911 Carrera 4S. The larger and more powerful new 3.8liter engine is only one of several features that distinguish the 2005 Porsche 911

tions and a serious upgrade of classic styling principles are bringing back the faithful and winning new converts to the venerable Porsche 911 Carrera.

4.8 seconds and reach 99 mph in only 11 .0 seconds. The 3.8-liter CarreraS cranks 0-60

44 1ValueRich Magazine Fall 2004

ored rear deck lid logo -

all as standard

that can be added optionally. Porsche engineers went all the way down to the chassis to give the 2005 Carrera line a wider, more athletic stance and improved performance. They looked into every nook and cranny to find weight reductions for a nimbler 911 . By starting from the frame out, Porsche was able to build on each innovation enhancing every aspect of the car. Porsche redeveloped the front and www.va lu eric honlin e.co m

rear axle subframes with more rigid components, widening t he structures and the axle pivot points to reduce weight and improve airflow to the brakes. Altogether, the subframe is stronger and more athletic yet lighter by approximately 2.2 pounds. Anti-roll bar pivot point changes and lighter weight have reduced body roll and friction, enabling Porsche to incorporate new aluminum springs that are approximately 70 percent lighter than steel. The Carrera now rides on standard 18inch light-alloy five-spoke rims produced through a new flow-forming process. The Carrera S comes with standard 19-inch wheels. Tires are Z-rated radials. Carrera S now has larger brakes, and for the first time, Porsche Ceramic Composite Brakes are available on the Carrera and Carrera S. Larger wheels and more engine torque gave rise to an entirely new six-speed manual gearbox. Porsche has upgraded to triple synchron izing for first and second gears and to double for third gear, retaining single synchronizing for gears four, five and six. Drivers will notice the difference. Shifter travel is reduced by

mounted controls, is optional for the Carrera and standard equipment on the Carrera S. The 2005 Carrera and Carrera S also have a new seating system, engineered to better absorb vibration . The shoulder area and width of the seat cushion have been increased to better accommodate taller occupants. Higher side bolsters provide more support during lateral acceleration through curves. Optional all-electric seats with a memory feature are adjustable in 12 directions, including the angle of the seat cushion and a lumbar support. Sport seats are available with even greater lateral support, featuring firmer padding. An Adaptive Sport Seat option combines the sports design with electrical controls. In the high-tech department, the optional DVD-based navigation system is now a separate module located in the luggage compartment. This allows the CD drive to be used exclusively for audio COs. The resulting DVD-based navigation is much faster than the former CO-based system, allowing for rapid access of routes and maps, as well as 23 zoom stages up to

a minimum resolution of some 55 yards. The new 911 is also the first sports car available with an optional Bose surround sound system that includes 13 speakers and a seven-channel 5 x 25 watt output digital amplifier. Active electronic equalization adjusts the reproduction of sound to specific acoustic conditions so all passengers enjoy an optimum sound experience. Porsche may have put a great deal of effort into updating the technology of the 997 series, but it obviously also was paying attention to past versions of the 911 that were a resounding success. The decision to go with two engine versions is a nod back to some of the most popular 911 s ever made. The same can be said for the body redesign of the 2005 Porsche 911 Carrera. While it improves aerodynamics, dropping the coefficient of drag from the previous model, its oval headlights and clean lines are a perfectly modernized rendition of the classic. One look at this car and you know that the 997's place in motoring history is assured. R www2.porsche.com

some 15 percent, and is smoother and more precise. But in spite of the performance enhancements, it's quite possible that the interiors of the new Carreras will get the most attention. Porsche seems to have finally amended its Spartan attitude and is providing some creature comforts that compares favorably with its high-ticket competitors. The cabin of t he 2005 Porsche 911 has been completely redesigned with new steering wheel, seats, gauge cluster, improved climate control, standard Porsche Communication Management (with available DVD navigation system), updated audio, upgraded anti-theft system, six standard airbags and a new Sport Chrono Package Plus option. A multifunction steering wheel, allowing the driver to operate audio, navigation and telephone equipment via wheelwww.vrexpo.net

The upgraded interior of the 2005 911 Carrera S sports aluminum-look interior trim. Fall 2004 ValueRich Magazine 45

Fonseca "The Original" Our first and most classic cigar! We have been making this cigar since 1992 with twice aged Connecticut Shade wrapper grown in Connecticut USA. This

wrapper is chosen for its beautiful , golden brown color and mild, rich smoke . We then acld an aged, Mexican Sumatra binder for a little spice and smokey flavor. Also ava ilable in Madu ro!

Fonseca Serie F

Fonseca VinUJ~ee

A ll tobacco in chis cigar is aged a minimum of 5 years! We start with a beautiful Ecuador, Connecticut Seed, Shade Grown wraJJper. The Tercio Aged Dominican filler and binder provide a rich, creamy flavor chat give the cigar presence without being overpowering. A medium bodied smoke supported by a floral aroma of natural tobacco.

The "F is or fuerte ... Spanish for full flavor. This blend starts with a well aged dark brown , oily Connecticut wrapper to a ttrac t the cigar connoisseur. The filler is Tercio Aged Ligero Cuban Seed. The smoke is robu.<t yet smooth and very, very tasty. This blend is designed to be savored slowly when you're in the mood for a full bodied , strong cigar.

Six different cigars. Six different flavors. Six different personalities. One proud name.

Ve~eas

de Fonseca This cigar is bold and daring' We use a Cameroon wrapper for its unique taste and pair it with a sweet tas ting Connecticut Broadleaf binder. The filler is bold with Nicaraguan Ligero and Dominican Tercio Aged tobaccos. Thi.< cigar star ts off mellow and builds in flavor as the Nicaraguan Ligero heats up . The smoke is a medium bodied, rich flavor.

Fonseca Sun Grown Cedar As the name implies, this cigar has a Sun Grown wrapper that is matched with a Dominican Olor binder. In the filler we realiy go wild by combining Nicaraguan Ligero for strength, Peruvian tobacco for its floral character and Dominican Cuban Seed to round out the blend. The result is a medium to full bodied cigar with loads of flavor and taste!

Limited Edition Fonseca Reserva Espedlll 2003 This fuli bodied cigar is wrapped in the finest Havana Criollo Honduran leaf and fill ed with 1996 Dominican and Nicaraguan Ligero. It comes packaged in an exquisite , mahogany chest, brass plate numbered with the box personally signed by Ma.<ter Blender Manuel Quesada . Get yours before they are gone!

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By Liza Grant Smith The Piaggio P180 Avanti

Avantair, a fractional aircraft ownership provider, is redefining jet setting. With its fleet of Piaggio P180 Avantis (the Italian twin-prop aircrafts known as Ferraris of the Sky) and its unique lower cost operating strategy, the company is helping aircraft ownership become a

ership proposition that once dominated the market. The key to Avantair's success lies in its fundamental business strategy of allegiance to a single type of aircraft, the Piaggio P180 Avanti.

One Sweet Ride

luxury within reach. Personal aircraft ownership was once a privilege reserved for the financially

Avanti is just about as cool as they come.

elite. Bragging rights went to those willing to sacrifice economics for comfort and convenience. Avantair CEO, Steve Santo, challenged this widely-accepted tradeoff when he launched the New Jersey-based fractional operation in 2001 . The company provides top-of-the-line aircraft and service to more than 50 current customers at considerable savings. This high-quality low-cost model is rare in the industry and has made the company extremely attractive to those who previously scoffed at the inefficient own-

The twin turboprop airplane, which seats a maximum of seven passengers plus crew, has set a total of eight world speed records, and cruising at speeds of 400 knots, travels faster than some jets. More amazing is the fact that the aircraft's speed does not compromise comfort. With a stand-up cabin larger than many midsize jets and surrounded by an acoustic blanket, passengers enjoy a whisper quiet ride and a level of comfort typically found only in larger and more expensive jets. This opulence includes the

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In terms of commuter aircrafts, the

full stand-up aircraft lavatory, unmatched by any other airplane in the Avanti 's class. These features are coupled with a fuel consumption of 30-40 percent less than a business jet, superior performance on shorter runways and the ability to carry larger payloads all valued in turboprops. All in all, the Avanti's reliability and performance make it the most advanced turboprop in corporation aviation and the fastest turboprop in the world . Avantair 's exclusive agreement with Piaggio America, Inc. to sell P180 fractional shares puts the company in an enviable position.

Strategic Cost Savings Ideas are often the result of an evolution of thought. The creation of Avantair is a case in point. Years ago, Santo was a partner at a law firm that chartered small airplanes for business travel. While convenient, the Fa ll 2004 ValueRich Magazine 47

related expenses were exorbitant. To minimize the cost, he contemplated starting a fractional ownership for a group of law firms. Upon becoming acquainted with the Avanti, however, Santo realized that he could utilize the aircraft to bring fractional ownership to a much larger market. By exclusively offering the Avanti with its inherent advantages, the aircraft could serve as the basis for a unique value-driven fractional ownership proposition. With one type of aircraft, Avantair can keep all components in stock and reduce service downtime. Plus, training and certification costs for pilots are lower than

users of commuter planes, utilized their insight to address many of the traditional hassles and neglected critical success factors buried in fractional ownership. Most notable among the hassles are fees paid for each occupied flight hour. Due to the potential for significant fluctuations, hourly costs are a CFO and individual owner's budgeting nightmare. "When I was using private aircrafts, I hated hourly costs because you never knew what you were going to pay each

purchased a fractional share and may be utilizing older aircrafts or those of lesser quality. Avantair's fleet of identically outfitted Avantis, all less than two years old, eliminates that worry. The integral aspect of any fractional operation is its dedication to safety, as this is what the industry prides itself on. The Avanti's spotless safety record helps the company 's reputation, but the more critical component is a comprehensive flight crew training program . Avantair management maintains an unwavering focus on establishing the high est safety standards.

for companies whose fleets consist of numerous aircraft makes and models. Add to this the fuel efficiency of the

Company pilots have an average of 8,000 hours of flight time and are required to take recur-

Avanti. With all of these savings passed on to the customer, it's clear that owners receive true value while traveling in style.

days. They are also limited in the amount of hours they can fly in a year.

rent training every 90

On the Horizon Avantair currently operates 11 aircrafts in three regions that match

Tweaking Tradition Regardless of the type of aircraft, fraction-

the major time zones in the United States. Due to intense demand, the

al ownership is an enticing prospect. It allows individuals to gain the advantages and conveniences of aircraft ownership without assum-

company anticipates five new aircrafts by yearThe Piaggio P180 Avanti has a stand-up cabin and passengers are end, with an additional surrounded by an acoustic blanket for a whisper quiet ride. 31 on order. ing the burdens of management concerns, month;' says Santo. He estimates that the The company's success serves as tesmaintenance repairs, scheduling issues hourly flight fees average between $1,200 tament to the strength of its business and costs associated with sole ownership. and $1,400. model. With as little as eight hours notice, Avantair built these fees into their fixed "The demand to get into the program

Avantair customers have access to an aircraft ready to take off from one of 5,000 airports, compared to the 950 accessible by commercial aircrafts. Plus, they can tailor their share size to fit their needs, with anywhere from 1/ 16 ownership equal to 50 hours up to a full ownership position of 800 hours. As is often the case, the devil is in the details. The founders of Avantair, as former 48 1ValueRich Magazine Fall 2004

management cost. The elimination of the hourly charges is a fractional first and provides owners with the convenience of a standard monthly fee. Unfortunately, wit h many other fractional companies, owners do not always get what they pay for. The aircraft provided to them is typically based on proximity. This means customers rarely fly in the actual aircraft in which they have

is beyond anything we expected;' says Santo. As a result, the company is currently working off a waiting list. Aircraft ownership is shedding its elitist membership requirements and welcoming a new faction into its ranks. Suddenly, thanks to Avantair, the luxury many professionals deserve is now one they can afford. R

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BARBADOS

Bon Vivant, a luxurious and comfortable private villa, is nestled in a two-and-ahalf acre tropical garden in the renowned Sandy Lane Estates. Recognized by The London Times as "one of the most gracious get-aways for the well-heeled", Bon Vivant is appointed for leisure and sports and is staffed to serve your every need. Our chefs have been trained at the finest restaurants in America. Among them, Le Bernardin, San Domenico, and WD-50 in New York City, Tru in Chicago and Lafitte's Landing at Bittersweet Plantation in Louisiana.

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espite sitting in the Arctic Circle, Norway is one hot country, at least when it comes to investment opportunities. Based on the current global situation and Norway's competitive advantages, the country is particularly appealing for investors attempting to counteract the negative portfolio impacts of the recent energy crisis. As the third-largest exporter of oil and one of the richest countries in the world, Norway is in a comfortable position at a time when many countries are scrambling futilely to improve economic health and boost the value of their currencies. To the Norwegia n people and economy, today's global energy situation translates to a period of prosperity. To American investors depressed by lackluster domestic economic performance, this same situation represents an attractive opportunity whose potential will be realized only upon making an investment play in Norway. The world is in a period of rapid global-

its equity markets. This should all be considered in conjunction with how the country will be impacted by global economic trends. One of the most influential trends recently has been the energy crisis. This is why large opportunities may be realized by taking advantage of assets that stand to thrive directly or indirectly as a result of t he spike in oil prices.

Norway's Oil-Based Strategy Any discussion of Norway is remiss if it does not highlight the importance of oil in the country's economic development. Oil was discovered off the country's coast in the late 1960s, and Norway's current petroleum production capacity is more than 3 million barrels per day. Oil and gas exports accounted for 56 percent of total merchandise exports in 2003. Although Norway is a relatively highcost oil producer when compared with other leading countries such as Iran, its

had reached $131 billion. The government also plans a gradual reduction in oil extraction rates, which is intended to prolong the country's oil production for an additional 50 years. Norwegian monetary policy focuses on maintaining a stable exchange rate of the krone against European currencies by adopting a flexible inflation-targeting framework with an established inflation target of 2.5 percent in 2001. This new system is designed to stabilize and oppose inflation and unemployment while stimulating growth - replacing a previous economic policy that contributed to wide fluctuations in the Norwegian economy. Despite weak economic activity in the early part of 2003, economists predict growth of 2.8 percent in 2004 and up to 3 percent in 2005 due to a rapid increase in domestic activity. This level of activity is bolstered by high consumer confidence, low inflation and the lowest interest rates in the postwar era.

ization, which has had a profound effect on both foreign investment opportunities and our access to financial informa-

political stability and proximity to the major European consumer markets have established it as a major player in the

tion. Increased economic liberalization and focus on privatization throughout the countries of the world have created a boom of international investment opportunities. These economic restructuring initiatives are projected to result in foreign market returns in line with the gains of the U.S. economy and markets in the '90s. With more information available on

world oil market. During the oil crisis years leading into the mid-'80s, huge capital investments in

foreign securities and the significant

riches, the country took a strategic stance

While burgeoning oil wealth is largely responsible for Norway's position as the world's third-richest country in terms of GOP per capita, it is critical to consider the other factors driving the country's economic health. According to the Organisation for Economic Co-operation and Development's 2004 economic survey of Norway, these include: • stability-oriented macroeconomic policies that have prevented oil wealth from being squandered

strides made in regulations and disclosure requirements in foreign markets, there has never been a better time to explore Norway from a financial perspective. Adopting an international strategy can be an overwhelming concept given the sheer number of investment options in today's global market. The key is to focus on emerging markets where the host country is politically sound, economically open and adheres to monetary policies that ultimately will result in the growth of

by creating a state Petroleum Fund in 1990. The fund serves both to smooth out short-term fluctuations in oil revenues, thus reducing its inflationary impact, and to aid with the fiscal challenges related to an aging population by transitioning wealth to future generations. Essentially, the Norwegian government utilizes oil revenue to cover its moderate budget deficits and transfers the remaining balance to its Petroleum Fund, which is then invested. As of April 2004, the fund

• efficiency gains from past liberalizations in a number of service sectors • direct impacts and spillovers from the capita l-intensive, technologically sophisticated and booming oil sector • a strong work ethic, as reflected in unusually high participation rates for men and women, old and young alike • a high-performing labor market, in which a brisk rise in employment has accompanied strong growth of productivity The level of oil production is signifi-

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the offshore oil sector resulted in greater growth in wages and production costs in Norway than in the rest of Western Europe and enabled the country to expand its considerable socia l welfare system. Rather than basking in its newfound

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cant, but these complementary factors are

These days Skorstad is utilizing his

As the country becomes a more inter-

what truly solidify Norway as a strategic energy play in today's market.

experience to help Norwegian and international investors, including Americans, capitalize on the current prosperity of

esting play and safe haven for investors, Skorstad is witnessing an increased interest on the part of not only foreign individual investors but also hedge fund managers and corporations looking to make select investments internationally. While Skorstad 's investment advice varies based on each client's investment

Norway's Star Player In-depth knowledge is critical in international investing. While research can provide some insight into the key components, there is no substitute for experience. With respect to Norway, few investment professionals are as seasoned as Ketil Skorstad. Now a leading stockbroker at one of Norway's preeminent brokerage firms, Norse Securities, Skorstad started trading at the ripe old age of 16. Having an interest in math, he took his entire life savings, approximately $2,000, and went to work. After making a small fortune by age

Norway and its companies. Established in 1974 and originally part of Paine Webber, Skorstad 's firm of Norse Securities is one of the oldest brokerage houses in Norway. The relationshiporiented company competes based on results, not size. With a small group of brokers, Norse specializes in understanding its clients needs.

profile, his top picks for investors in the Norwegian marketplace are as follows: Statoil (NYSE: STO) Statoil is the largest oil company in

Sportsman: Ketil Skorstad on Europe's highest mountain, Mont Blanc, France.

17, he then proceeded to lose everything. Discouraged but determined, he managed his uncle's holdings and boasted returns. By the age of 23, Skorstad was one of the top five brokers in the country, pulling in a salary close to $2 million. He credits his tumultuous start for much of his current success. "You need to get scared of losing money to do well in this business;' says Skorstad. He affirms that only experience breeds understanding. 52 1ValueRich Magazine Fall 2004

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Norway - 77.1 percent is owned by the Norwegian government. We believe Statoil represents one of Europe's most attractive "pure plays" on the oil price. A $1 change in the oil price represents a +1- 5.5 percent change in EPS. With OPEC gradually losing control of the oil price, we expect it to remain firm above $30 per barrel in 2005. The market cap is $28 billion. Norsk Hydro (NYSE: NHY) Norsk Hydro is the second-largest oil company in Norway and one of the world's leading aluminum producers. With falling aluminum inventories, we expect aluminum prices to gradually rise during the second half of 2004, benefiting the company. This, combined with our scenario of an oil price above $30 per barrel in 2005, creates an interesting investment. The market cap is $17 billion and the Norwegian state owns 43.8 percent. Dnb NOR (Pink Sheets: DNBHF.PK) The merger between Norway's two largest banks, DnB and Sparebanken NOR, has opened up large-scale cost-cutting opportunities and therefore improved ROE potential. Nevertheless, DnB NOR is among the lowest-priced banks in the Nordic region, both compared to book value and EPS. The market cap is approximately $1 0 billion. Yara (Oslo: YAR) Yara is the largest fertilizer company in the world based on revenue and has a market capitalization of $2.6 billion. We believe Yara is the best play toward continued strength in the fertilizer markets. Trading at an EV/EBITDA of 4.1, the shares seem substantially undervalued compared to Yara's peer group, which is trading at an EV/ EBITDA of 6.4. Telenor (Nasdaq: TELN) Telenor is one of the leading telecommunications companies in the Nordic region, with a diversified mobile operations portfolio. The company has a market capitalization of $12 billion and delivers stronger growth t han its peers because of its solid position in emerging markets. We believe the earnings growth in Telenor will exceed market expectations. In addition, the shares are traded at 9.3 times www.v rex po. net

Northern Exposure Forum Nordic Hedge presents an interesting opportunity for global fund managers and institutional investors seeking broader exposure to Nordic economies. Consisting primarily of Norwegian and Swedish holdings, the fund typically contains between 10 and 15 carefully selected stocks, with maximum exposure to a single holding set at 15 percent. Investors are able to gain the advantages of both the Oslo and Stockholm stock exchanges as well as tapping into the greatest investment opportunities in the related countries. Sweden and Norway are ranked in the top 10 of the World Economic Forum's 2004 international list of good prospects for future growth. The two countries make an attractive pairing for savvy investors. S.P. Bell Ltd., one of the largest independent regional stockbroker houses in the U.K. and the investment advisor for Forum Nordic Hedge, uses its investment expertise and intense technical analysis to highlight the strengths and capitalize on the critical industries within the two countries. Among these are the Nordic area's much-touted energy and telecom industries, both of which are appropriately represented in the fund. The technical analysis includes both short- and long-term trends, in addition to momentum and trading volume. The aim is to achieve long-term stable growth with controlled risk through both long and short positions. By limiting the portfolio to between 10 and 15 stocks, the risk is diffused without restricting the fund's growth potential. To illustrate confidence in the investment philosophy and guarantee that their interests align with those of the fund 's outside investors, the partners in Forum Asset Management AS, the fund's joint promoter, have invested the majority of their liquid assets into the fund . Thanks in large part to fund manager Lars Christian Beitnes, Forum Nordic Hedge has realized 50.33 percent growth since its inception in 2002 and posted profits in 21 of the last 27 months. Beitnes, whose background includes trading in the Nordic and North American stock markets, has experience in both fundamental and technical analysis. He suggests that the fund is extremely attractive to those wishing to gain exposure to the Nordic markets, but who may not have the knowledge or willingness to invest in a single Nordic holding. The broad stock and industry offerings in the fund present investors with an attractive sampling of Swedish and Norwegian plays, and can act as an effective hedge in the energy and shipping sectors.

next year's estimated earnings, making the share appear undervalued. One of the greatest challenges for investors is to see beyond present hindrances and recognize opportunities. During times of U.S. prosperity, a domestic mind-set and investment strategy can be lucrative. However, the lack of diversification in this stance also can be inherently risky and narrow-minded. The current energy situation has left some economies struggling, but th is suffering need not extend to the

portfolios of American investors. Norway, with its oil wealth and stable economy, could offer investors comfort in the current energy environment. V R Norse Securities ketil.skorstad@norse-sec.no +47 22 01 63 00 Forum Nordic Hedge www.hedgefund.no mail@hedgefund.no +47 22 12 12 02 Fall 2004 ValueRich Magazine 53

The Paper Chase By Liza Grant Smith

AccuPoll

Electronic Voting Systems is emerging as the frontrunner in the race for electronic voting machines with voter-verified paper audit trails.

he highly publicized problems in the 2000 presidential election prompted a public outcry for electronic voting. One voting machine manufacturer, AccuPoll, is putting paper back into the voting process, an initiative supported by a growing number of legislators, human interest groups and citizens across the country. Prior to 2000, the word "chad" was most frequently associated with a country in Central Africa or the name of a childhood friend. Now it is irrevocably linked to the infamous 2000 presidential election and commonly paired with the terms "hanging;'"dimpled" and "pregnant:' The election highlighted myriad problems with paper ballots and served as a call to action for the government to rebuild citizens' trust in the voting process. Unfortunately, more inherent problems are being identified with direct recording electronic (ORE) voting machines, and they no longer seem to be the panacea for the nation's voting woes. One of the strongest complaints is the absence of an auditable paper trail. By including this capability in its machines, AccuPoll believes it ensures accuracy and gives voting autonomy back to citizens. While the intention is noble, the potential requirement of a voter-verified paper audit trail (VVPAT) has sparked intense debate among government officials, citizens, voting machine manufacturers and election administrators.

54 1ValueRich Magazine Fall 2004

www. va lu eri chonlin e.co m

The Electronic Age Most would agree that ORE systems do have their advantages. Also called "touch-screen " voting machines, OREs reduce many of the operational issues related to handling paper ballots that have led to election abnormalities. For example, the problem of overvoting, where ballots are thrown out because more than one candidate has been selected in the same race, is eliminated with OREs. The machines offer foreign languages and can be adapted easily with earphones and Palm Beach County Supervisor of Elections Theresa LePore (left) showed Republican New Jersey Gov. Christine enlarged font to enable Whitman a dimpled ballot during the hand recount of questionable ballots from Palm Beach and Broward counthose with disabilities to ties after the 2000 presidential election. cast their ballots in prirecounts by hand impossible. In some vate. The touch-screen systems also promere errors and into vote tampering . It is states, such as Florida, the absence of a vide immediate access to election results far easier to manipulate millions of elecmanual recount capability directly conand are more user-friendly than most of tronic votes than even a handful of paper tradicts state laws requiring recounts by the other existing systems, such as the ballots. Utilizing electronic machines notorious butterfly ballot. The criticisms of OREs range from prov-

hand in close races. The problems with OREs extend past

en facts to borderline conspiracy theories, but most center around the issues of secu-

AccuPoll offers foreign languages and can be adapted for voters with disabilities.

rity, auditing and trust. Few computer systems are infallible, regardless of the skill and intent of their creators. In the event of incorrect programming or a computer glitch in voting machines, the absence of an external record prevents auditing of ballots. While machines wit hout a VVPAT produce a printout of all votes cast after the polls close, it is merely a duplication of the original information, which may or may not be correct. There is no check-and-balance system available to verify results. This also can be a problem when it comes to recounts . Touch-screen voting systems without paper trails make www.vrexpo.net

without paper trails circumvents much of the chain of custody inherent in paper ballots and does not require tamperers to have physical access to the actual ballots. Programmers can create backdoor enty into the system and alter results. Or a manufacturer or insider could install a "Trojan horse" chip or special code to achieve the same effect. Regardless of any of the above scenarios, there are a growing number of examples of ORE failure, resulting in increased public distrust and a search for more improved technology.

There Has to Be a Better Way After watching the disastrous election events of 2000 unfold, two software consultants were fed up. Dennis Vadura and Frank Wiebe decided there had to be a betFa ll 2004 ValueRich Magazine 55

ter way. Their idea was to include a paper trail in the design of voting machines. After doing some research and realizing that none of the significant voting machine players were incorporating this feature, the two wrote a four-page white paper that they ambitiously sent to every secretary of state in the nation. Roughly 10 days later, they received a call from Ron Thornburgh, then president-elect of the National Association of Secretaries of State, inviting them to Washington to show off their voting system. Knowing that all they had were four pages with words on them, Vadura and Wiebe panicked. They hurriedly procured free hardware from vari-

ily manipulated;' he says, "then without an

short timeline on voting machine pur-

independent audit trail, not only are you reducing the consonance of the democratic process, but you are also adding to the mistrust at the voter level:' Demand for VVPATs is driven in part by public opinion but also by recent government legislation. In response to the concerns raised during the 2000 election, Congress passed the Help America

chases and upgrades. As one of only a few companies producing federally certified machines with VVPATs, AccuPoll is in an enviable position . The majority of industry leaders were slow to respond to the shift in public opinion, and many still argue that a paper trail is unnecessary because of the extra costs and potential problems associated with generating and understanding receipts. Rebecca Mercuri, a Harvard University fellow and recognized expert on electronic voting, disagrees. "Most transactions, even those that involve computers, successfully issue receipts- these are generated

ous manufacturers and printed signs at Kinko's the morning

by the hundreds of millions every day;' says Mercuri. "People

of the presentation to identify their display table. "The other guys laughed at us, I'm sure;' recalls Wiebe, "but we're still here:' AccuPoll (OTC: ACUP), the company the two formed, is

are accustomed to looking at small slips of paper to check for correctness. Ballots are not much different from a lottery ticket, an ATM deposit receipt and a grocery store stub:' Having incorporated a paper trail from the beginning, AccuPoll's machines are

more than just "still here"; it's thriving, due to their inclusion

competitively priced and the of a VVPAT, which allows voters company has already jumped to verify that their votes have through the hoops of federal been accurately recorded and and multiple state certifications. provides an audit capacity in Those ORE manufacturers late the event of problems with the electronic count. to the VVPAT school of thought AccuPoll is ahead of the competition in providing a ballot receipt. are unlikely to receive certificaAfter voters have verified their decisions on the machine's tion in time for states desiring Ballot Review screen and officially cast Vote Act of 2002 (HAVA), which approprito purchase their machines before the their ballots, the AccuPoll Voting Station HAVA deadline. ated $3.9 billion for the upgrade of voting prints out a paper Proof of Vote. The voter Utilizing OREs without paper trails equipment across the nation. In addition can then approve selections or request means taking the risk that the machines' to mandating the replacement of outchanges and drop the paper in the balresults won't be accurate. With the trust of dated voting machines, HAVA requires lot box when satisfied. Each Proof of Vote citizens and political acceptance at stake, machines to produce a paper record of also has a bar code for cross-checking AccuPoll believes most state officials will votes cast that has been verified by votit against the electronic record during a be unwilling to make that gamble. VR ers and is available for a manual audit of recount. the voting system. VVPAT capability is the Wiebe underscores the importance of John Stiles: (314) 994-0560 clearest way to meet this requirement. an independent audit trail. "If you go soleir@accupoll.com States must conform to HAVA requirely electronic, where the results can be easwww.accupoll.com ments by January 1, 2006, which puts a 56 1ValueRich Magazine Fall 2004

www.valuerich online. com

FALL

2004

DIRECTORY

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Ashvattha SEMI C 0

N DUCT 0

IN C.

SYMBOL: CAU

PRIVATE

EXCHANGE: AMEX

INVESTMENT BANKING/ BUSINESS OBJECTIVE:

Ashvattha Semiconductor, Inc. seeks $5-8 million in a Series C financing to fund Ashvattha through early commerci alization of its first product the MME2700 RF IC. Proceeds will be for product comme rcia lization, design/ engineering of additional products, sa les and marketing activities.

Canyon Resources is currently seeking capital to develop the McDonald Gold Project and investigate new advance-stage precious metal exploration and development projects. Each project has its own specific capita l requirements. The Company anticipates rai si ng capital through equ ity, possibly debt, and/ or joint venture financings as projects mature.

COMPANY DESCRIPTION

A fabless semico nductor company and leading edge designer of ultra-high performance, multi-mode radio frequency IC technology. Their revolution ary Multi-Mode Engine (MM E) architecture allows the simu ltaneous use of a ce llular standard, a location standa rd (GPS), and a personal area/ local area network (PAN/WLAN) standard. Ashvattha's technology is comprehensively designed to enable the integration of multiple disparate RF front end s on a single chip, with no compromise in the performance of the individual systems implemented.

Canyon Resources is a U.S.-based mining company, whose business is the discovery and production of precious metal s. The Company's gold inventory of

13.8 million ou nces includes 9.8 million ou nces of mineable reserves which are being developed or are operating mines in the western U.S.

CONTACT INFORMATION

James Kamke, CEO 9591 Waples Street San Di ego, CA 92121 Ph: 858-622-9484 x14 Fax: 858-622-9489 jkamke@ashvattha.com www.ashvattha.com

Richard H. DeVoto, President 14142 Denver West Parkway, Ste. 250 Golden, CO 80401 Ph: 303-278-8464 x11 0, Fax: 303-279-3772 rhdevoto@canyonresources.com www.canyonresources.com

•••• I•

•••

imedia digital media aolutlona

SYMBOL: GNOI

EXCHANGE: OTC BB

SYMBOL:

IMNL

EXCHANGE: OTC PINK

INVESTMENT BANKING/ BUSINESS OBJECTIVE:

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Genio Group, is currently seeking capital in order to fu rther market its products and increase busi ness and advertising opportunities.

iMedia Internati onal is currently looking for private capital and qualified management or joint ventu re partners to finance its international expansion. We seek to partner with existing management team s having experience in the publishing industry, media sa les, advertising and marketing who have an existing client base. Our curre nt international expansion interest involves the U.K., western Europe, Asia, Australia and South America.

COMPANY DESCRIPTION

Genio Group, Inc., is a developer and marketer of entertainment and leisure products. Genio Group hold s a wo rld w ide license with Marvel Enterprises, Inc. to manufacture and sell specific categories of products based on the globally recognizable Marvel Super Heroes~. The Company's first product, the Genio Cards' " series is now available at more than 10,000 retail outlets nationwide.

iMed ia International is in the digital media and publishing business. The Company creates proprietary iMag azines and promotional discs that are interactively viewed on computers. This allows traditional print media publishers to effectively use interactive digital enhancement to rival all other media. The discs converge the combined power of print, audio, video, broadcast and the Internet in a multimedia presentation that is interactive, measurable and effectively packaged for the most efficient distribution to a targeted audience.

CONTACT INFORMATION

Genio Group, Inc. Andrew Schenker, CFO 1120 Avenue of the Americas, New York, NY 10036 Ph: 212-626-6702 aschenker@geniocards.com www.geniocards.com

Investors Relations Contact: Company: Investors Stock Daily, Inc. Jody Janso n 160Tobey Road Pittsford, NY 14534 Ph: 585-232-5440, Fax: 585-232-5457 jody@istockdaily.com http:// www.istockdai ly.com

www.vrex po.net

Company Contact: Kelly Konzelman, EVP 1721 21st Street Santa Monica, CA 90404 Ph: 310-453-4499, Fax: 31 0-453-6120 info@imedia -intl.com www.imedia-intl.com Fall 2004 ValueRich Magazine I 57

e p1pehne PRIVATE

SYMBOL: FCON

INVESTMENT BANKING/BUSINESS OBJECTIVE: Epipeline, Inc. is seeking capital and acquisition candidates to expand business opportunities in the rapidly grow ing business intelligence industry.

EXCHANGE: OTCBB

INVESTMENT BANKING/ BUSINESS OBJECTIVE: FinanciaiContent, Inc. seeks a second round of funding in order to expand its product offering and to expand its global client reach .

COMPANY DESCRIPTION

Epipeline, Inc. w as founded in 1999 for the purpose of providing government cont ractors unparalleled contracting information, research and resources. Epipeline was the first company to provide high value research to government contractors over the Internet. Currently, epipeline is serving over 4,000 users across 310 companies. In the U.S. alone, there are over 100,000 government contractors who may benefit from using our services.

FinanciaiContent, Inc. is a leading provider of financial data and business applications to online media and financial services companies worldwide. The Company offers solutions for market data, real-time news, and analytical tool s for Web, wireless and print applications. With over 300 deployments worldwide, FinanciaiContent is rapidly grow ing its client base of banks, brokerages, credit unions and application service providers as well as diversified media businesses and Fortune 500 companies.

CONTACT INFORMATION

CONTACT INFORMATION FinanciaiContent, Inc. Wing Yu, Chief Executive Officer 400 Oyster Point Blvd., Suite 435 South San Francisco, CA 94080 650-837-9850, Fax: 650-745-2677 wyu@financialcontent.com www.financialcontent.com

Tim Walsh, President & CEO Epipeline, Inc. 607 Herndon Parkw ay, Suite 103 Herndon, VA 20170 Ph:781-929-7657 tim .walsh@epipeline.com www.epi pel i ne.com

raser

------

s EM8 T u

SO LUTI ONS

TE C H N O L O G I E S

SYMBOL: RSTG

the w i r el ess ar ch itect s-

EXCHANGE: OTC BB

SYMBOL:

DLK

EXCHANGE: AMEX

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Raser Technologies, Inc., is w orking with its investment banker to raise capital to fund the development of their business model, which is focused on licensing their Symetron'" electric motor technology to motor manufacturers, worldwide. Applications include virtually all electric motors, when AC induction or PM type motors are used.

Semotus Solutions is seeking capital only through a strategic relationship or partnership.

COMPANY DESCRIPTION

Founded in 2001 , Ra ser Technologies believes that its pending patents cover breakthrough electric motor technology. Thi s technology more effectively harnesses one of nature's most usef ul fo rms of energy and delivers it in a low cost, lightweight electric drive system for industry, home, and electric vehicles. This revolutionary motor technology requires a few simple changes to conventional motors, but yields significant increases in power, performance and efficiency without the use of exotic materials.

Founded in 1993, Semotu s Solutions (AMEX:DLK) is a premier provider of software for enterprise applications, connecting employees wirelessly t o criti cal business systems, information and processes. Products provide custom data, notification services and two-way wireless access to corporate system s.

CONTACT INFORMATION Raser Technologies, Inc. David West, VP Marketing 5152 North Edwood Drive Provo, Utah 84604 Ph : 801-765- 1200, Fax: 801-374-3314 dw est@rasertech .com 58 1ValueRich Ma azine Fa ll 2004

INVESTOR RELATIONS CONTACT Investors Stock Daily, Inc. Jody Janson, President 400 Andrews Street, Suite 617, Rochester, NY 14604 Ph: 585-232-5440, Fax: 585-232-5457 jody@istockdaily.com www.istockdaily.com

CONTACT INFORMATION Semotus Solutions Anthony LaPine, CEO 16400 Lark Avenue, Suite 230, Los Gatos, CA 95032 Ph. 408-358-7100, Fax: 408-358-7110 www.semotus.com w

i h nlin .

uswirelessonline

SYMBOL: SWYC.OB

EXCHANGE: OTCBB

SYMBOL: UWRL.OB

EXCHANGE: OTCBB

INVESTMENT BANKING/ BUSINESS OBJECTIVE:

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Sky Way Communications Holding Corp. Aircraft is seeking to raise capital t o continu e funding the deve lopme nt trials of its network in a test region and then fu lly fund an operationa l network nationwide.

US Wireless Online is currentl y seeking capit al of $3 mill ion to comp lete its deployment of a rece ntly developed non-line-of-sig ht (NLOS) wireless data transmission system in Lou isville, KY and to begin NLOS deployment in the Company's other core markets.

COMPANY DESCRIPTION

Sky Way is a development stage company with a focus on In-flig ht wi reless services. These se rvices include Homeland Security and In-flight Entertainment (IFE) to the government and civili an airline industry via its nationwid e broadba nd ground-to-air co mmunications. The Sky Way enabling technology provides an increase in the speed of data transmission to in-flight aircraft at more than 1Ox th e capacity of alternative sol utions to provide video transmission, data co llection, and high-s peed Internet traffic.

US Wireless Online was formed in June of 2000 to take advantage of opportunities in th e broadband data marketplace, including "last mile" hi gh-speed Internet access, mobile Intern et access, and other high-speed access products. It began comme rcia l operations in Atlanta in January, 2001 , and has since grown to more than 500 commercia l customers representing 24,000 users in five metropolitan market s: Atlanta, Loui svill e, Cincinnati, Columbus and Dayton.

CONTACT INFORMATION

SkyWay Commun ications Holding Corp. Contact: David Huy Titl e: Director of Sa les/ Marketing Address: 6021 142nd Avenue N. Clearwater, FL 33760 Ph: 727-535 -82 11 , Fax: 727-535 -1 930 vrinvest@swyc.us www.skywayaircraftsecurity.com

Douglas Keeney, CEO 745 W Main Street, Suite 100 Loui sville, KY 40202 Ph: 502-213-3700, Fax: 502-583-8251 info@uswo.net www.uswirelessonline.com

Prevention SYMBOL:

PVNC.OB

Insurance

EXCHANGE: OTCBB

INVESTMENT BANKING/ BUSINESS OBJECTIVE: Prevention Insurance is seeking a strategic partner to assist in the acquisition of several large in surance who lesalers. PVNC also is seeking to raise$ 10 million in working capital through a co nvertible preferred stock sa le.

COMPANY DESCRIPTION Prevention Insurance is a new publicly traded insurance holding company li sted on the NASDAQ BB. Our main objective is to acq uire long -term care and medical supplement insurance w holesa ling companies. The primary attraction is excellent residual income provid ing predictable earnings and rising demand due to aging population.

CONTACT INFORMATION Prevention Insurance Scott Goldsm ith, President 2770 South Maryland Park, #416 Las Vegas, NV 89109 Ph. 702-732-2758, Fax: 702-732-2778 scgold7 1 1@aol.com

www.vrexpo.net

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Raise Capital • Merge and Acquire Partner and Joint Venture • Make New Business Contacts • Attract Market Support Call 561.832.8878 • www.valuerichonline.com Fall 2004 ValueRich Magazine 59

Alpine Air ~-=~~~路=xpress SYMBOL: ALPE

EXCHANGE: OTC BB

SYMBOL: EEGL

EXCHANGE: NASDAQSC

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Alpine Air Express is seeking several corporate expansion measures- account acquisition, domestic and international route expansion and the launch of its owner/ operator program. Alpine also seeks merger and acquisition activities in the regional cargo airline industry.

Eagle Supply Group, Inc. is seeking acquisition candidates in the fragmented roofing and masonry supplies distribution industries. The Company believes that there are opportunities to source and distribute products efficiently and to achieve cost-savings and increased profits through economies of scale by growing through acquisitions.

COMPANY DESCRIPTION

Through its wholly-owned subsidiary, Alpine Aviation, Alpine Air Express Inc. is the third largest of all cargo regional airlines based on volume in the United States. The Company currently operates 17 routes in four states - North Dakota, South Dakota, Texas and Montana. Alpine owns a fleet of 29 airplanes and commands annual sales of more than $10 million.

Eagle Supply Group, Inc. is a wholesale distributor of residential roofing and masonry supplies and related products in the United States. These products represent 85-90 percent of Eagle's total revenues.

CONTACT INFORMATION

Alpine Air Express Eugene R. Mallette, CEO 1177 Alpine Air Way, Provo, UT 84601 Ph: 801-373-1508, Fax: 801-377-3781 mallette51 @aol.com www.alpine-air.com

INVESTOR RELATIONS CONTACT Investors Stock Daily, Inc. Jody Jan so n, President 400 Andrews Street, Ste. 617 Rochester, NY 14604 Ph: 585-232-5440, Fax: 585-232-5 457 jody@istockdaily.com www.istockdail

Eagle Supply Group, Inc. Douglas P. Fields, Chief Executive Officer 122 East 42nd St, Suite 1618, New York, NY 10168 Ph: 212-986-6190, Fax: 212-972-0326 dpfields@eaglesupplygroup.com www.eaglesupplygroup.com

~ SWISS MEDICA INC. SYMBOL: SUPG

EXCHANGE: NASDAQNM

SYMBOL: SWME.OB

EXCHANGE: OTCBB

INVESTMENT BANKING/BUSINESS OBJECTIVE:

SuperGen, Inc. is seeking acquisition candidates to expand business opportunities. The Company's strategy is to identify, acquire and develop pharmaceutical products in the later stages of development. This will shorten the research and development cycle and minimize the time and expense associated with drug commercialization.

Swiss Medica, Inc. is seeking bioscience companies with clinically proven proprietary products that relieve or treat blockbuster medical conditions such as cholesterol, weight loss, diabetes, erectile dysfunction, depression, etc., and are FDA compliant. Companies shou ld already be revenue generating.

COMPANY DESCRIPTION

SuperGen, Inc. is a pharmaceutical company dedicated to the acquisition, rapid development and commercialization of oncology therapies for solid tumors, hematological malignancies and blood disorders.

Swiss Medica commercializes proprietary bioscience products that relieve chronic ailments and increa ses market share through acquisition and focu sed distribution strategies in multiple sa les channels. SM has built an experienced management team with over 100 years of blue chip experience in management, sales/marketing, finance, mergers and acquisitions and business development.

CONTACT INFORMATION

SuperGen, Inc. Tim Enns, VP, Investor Relations and Business Development 4140 Dublin Blvd., Suite 200, Dublin, CA 94568 Ph: 925-560-0100 ext. 111 , Fax: 925- 560-0101 tenns@s upergen.com www.supergen.com

Swiss Medica, Inc. Greg Nuttall, Vice-Chairman and EVP 53 Yonge Street, 3rd Floor, Toronto, ON, Canada M5E 1J3 Ph: 416-868-0202, Fax: 416-868-6776 gnuttall@swissmedica.com www.swissmedica.com

60 IValueRich Magazine Fall 2004

www. valuerichonline.com

eldorado gold SYMBOL: EGO/ELD

EXCHANGE: AMEX/TSX

STANDARD MANAGEMENT SYMBOL: ONCU.PK

EXCHANGE: OTC

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Eldorado Gold Corp. is seeking acquisition candidates, or seeking strategic merger, partnerships, joint ventures or acquisition.

Standard Management Corporation is seeking strategic acquisitions w ith strong top and bottom line growth that can be integrated vertically into one of our five separate channels of health care distribution. Through the development and evolution of its wholly owned subsidiary, U.S. Health Services, Standard Management is changing the landscape of U.S. health care through its consumer, institutional and wholesale divisions.

COMPANY DESCRIPTION

Eldorado Gold is an international gold-producing company currently active in development and exploration. The company has gold assets in Brazil and Turkey, two countries that offer strong geological potential. The Company is debt-free and unhedged.

Founded in 1989 as a financial services company, Standard Management Corporation has grown to a NASDAQ-traded corporation with $2 billion in assets. The decision to diversify and expand into home health care in 2002 resulted in a commitment of more t han $40 million to its subsidiary, U.S. Health Services.

CONTACT INFORMATION

Eldorado Gold Corporation Nancy Woo, Manager, Investor Relations 920 Guinness Tower, 1055 West Hastings St. Vancouver, British Columbia, Canada V6E 2E9 Ph: 604-601-6650, Fax: 604-687-4026 nancyw@eld oradogo ld.com www.eldoradogold.com

Standard Management 10689 North Pennsylvania, Indianapolis, Indiana 46280 Ph: 317-574-6200; 800-222-3216 www.sman.com www.ushscorp.com

INVESTORS" CAPITAL INVESTORS CAPITAL HOLDINGS

SYMBOL: UTK

EXCHANGE: AMEX

SYMBOL: ICH

EXCHANGE: AMEX

INVESTMENT BANKING/BUSINESS OBJECTIVE:

UTEK Corp. is seeking synergistic acquisition candidates and public technology company clients who need to expand their core technology. UTEK technology acquisition candidates should represent a major technological leap forward, have an existing global market, be socially responsible and have a customer in place prior to acquisition.

Investors Capital Holdings is seeking merger and acquisition opportunities.

COMPANY DESCRIPTION

UTEK~

Investors Capital Holdings (AMEX: ICH), of Lynnfield, Massachusetts, is a diversified financial services holding company that owns and operates three distinct subsidiaries: an independent broker-dealer firm, an investment advisory firm, and a full-service, fixed and variable insurance agency.

is an innovative technology transfer company dedicated to building bridges between university-developed technologies and the commercial sector. UTEK Corporation is a business development company that acquires, develops and finances primarily university technologies for its corporate customers.

CONTACT INFORMATION

UTEK Corporation Clifford M. Gross, Ph.D., Chief Executive Officer 202 South Wheeler Street, Plant City, FL 33563 Ph: 813-754-4330 Ext 227, Fax: 813-754-2383 cgross@utekcorp.com www.utekcorp.com

Timothy Murphy, CFO Investors Capital Holdings 230 Broadway, Lynnfield, MA 01940-2320 Ph: 800-949-1422, Fax: 781-593-9464 info@investorscapital.com www.investorscapita l.com

www. vrexpo.net

Fall 2004 ValueRich Magazine 161

THEVALUERICHMARKETPLACE AMERICAN AccEss

21dStar SYMBOL: ADST

EXCHANGE: NASDAQSC

TECHNOLOGIES, ]NG Solutions To Open Office Architecture ••

SYMBOL:

AATK

EXCHANGE: NASDAQSC

INVESTMENT BANKING/BUSINESS OBJECTIVE:

AdStar, Inc. is seeking strategic relationships and/ or acquisitions to expand its ad-processing platform to media companies and vertically integrated on-line businesses.

American Access Technologies, Inc. is seeking strategic relationships that are synergetic in manufacturing, sales and financing. We were successful in 2003 in raising capital and we continue to seek the "right" relationships. Our present goal is to remain debt free.

COMPANY DESCRIPTION

AdStar, Inc. offers publishers and advertisers superior e-commerce services and a unique technology infrastructure that facilitates electronic ad-transaction services in the $20 billion classified ad industry. The Company's products bridge disparate technologies and systems in a way that provides for seamless communications and transmission of ads between advertisers and publishers for print and/ or online publication.

The Company manufactures patented zone-cabling and wireless enclosures for the telecommunications industry, through its wholly owned subsidiary, Omega Metals, Inc. The Company develops solutions for open office architecture routing, high speed cabling, copper wiring, and wireless solutions into and through office buildings, hospitals, convention centers, schools, hotels, entertainment and theme parks, government buildings, and industrial complexes. Omega Metals has been in business over 25 years.

CONTACT INFORMATION

AdStar, Inc. Jeffrey Baudo, SeniorVP and COO 4553 Glencoe Avenue, Suite 325 Marina del Rey, CA 90292 Ph: 310-577-8255, Fax: 310-577-8266 jbaudo@adstar.com www.adstar.com

American Access Technologies Inc. Contact: Joe McGuire, Chief Financial Officer 6670 Spring Lake Rd, Keystone Heights, FL 32656 Ph: 352-473-6673 ext. 120, Fax: 407-333-2598 jmcguire@aatk.com www.aatk.com

SYMBOL:

RTK

EXCHANGE: AMEX

SYMBOL: TKO

EXCHANGE: AMEX

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Rentech's main objective is to secure a commercial project to implement its gas-to-liquids technology and find a strategic partner to aid in funding, either by joint venture or purchasing a portion of the Company.

Telkonet, Inc. is seeking strategic partnerships with value-added resellers, system integrators and distributors, to leverage the partners' brand name, delivery infrastructure and customer relationships. Choice Hotels International, one of the largest hotel franchise companies in the world, is the Company's first industry partner. Telkonet's strategy is to gain a foothold in each of the 50 states and to boost market penetration region by region .

COMPANY DESCRIPTION

Rentech, Inc. is the developer and marketer of a patented and proprietary gas-to-liquids technology for the conversion of synthesis gas. Solid and liquid hydrocarbon feedstocks (natural gas, coal, petcoke) are made into clean, sulfurfree, diesel fuel, naphtha, waxes and fuel for fuel cells.

The Company is the leading developer of high-speed Internet distribution over the existing electrical lines within commercial buildings. Telkonet's proprietary product solution can be implemented quickly and less expensively than most dedicated wiring or wireless systems.

CONTACT INFORMATION

Rentech, Inc. Mark Koenig, Director of Investor Relations 1331 17th St. Suite 720, Denver, CO 80202 Ph: 303-298-8008, Fax: 303-298-8010 mkir@rentk.com w ww.rentechinc.com

Ken Sgro CEOCast.com Ph: 212-732-4300 www.ceocast.com kensgro@ceocast.com

62 1ValueRich Magazine Fall 2004

Investors Stock Daily, Inc. Jody M. Janson 400 Andrews Street, Ste. 61 7 Rochester, NY 14604 Ph: 585-454-6955, Fax: 585-232-5457 www.istockdaily.com jody@istockdaily.com

www. va Iuerichonl in e.com

AVI ~

E3iCJFJh,srm,s SYMBOL: AVII

EXCHANGE: NASDAQNM

SYMBOL: BVX

EXCHANGE: AMEX

INVESTMENT BANKING/BUSINESS OBJECTIVE:

AVI BioPharma, Inc. is seeking strategic merger, joint venture or acquisition

Bovie Medical Corp. is currently seeking to acquire, develop and manufacture new product technologies. Bovie Medical also seeks to expand its manufacturing capabilities through joint ventures and partnerships.

COMPANY DESCRIPTION

AVI BioPharma, Inc. is developing a robust pipeline of therapeutic products for treating life-threatening diseases using third-generation NeuGenes antisense technology. The company has completed nine clinical trials with NeuGene drugs in more than 250 subjects addressing cardiovascular restenosis, cancer, polycystic kidney di sease and drug metabolism. AVI's AVICINE" cancer vaccine, has successfully completed six clinical trials and is expected to enter Phase Ill studies in pancreatic cancer.

The Company manufactures and markets a variety of electrosurgical medical products and develops related technologies and products.

CONTACT INFORMATION

Michael Hubbard, Director of Investor Relations One SW Columbia, Suite 1 105, Portland, OR 97258 Ph: 503-227-0554 hubbard@avibio.com www.avibio.com

SYMBOL: UBDF.OB

INVESTOR RELATIONS CONTACT: Lippert/ Heilshorn & Associates, Inc. Bruce Voss: bvoss@ lhai.com Jody Cain: jcain@lhai.com Ph: 310-691-7100 www.lhai.com

EXCHANGE: OTCBB

INVESTMENT BANKING/BUSINESS OBJECTIVE: U.S . BioDefense is seeking a strategic merger, partnership, joint venture or acquisition.

COMPANY DESCRIPTION U.S . BioDefense provides diversified professional and technical services involving the application of scientific, engineering and management expertise to provide biological defense so lutions for government and commercial customers in the U.S. and abroad. We are currently developing our internal operations and researching potential opportunities to expand our business.

CONTACT INFORMATION David Chin, CEO U.S. BioDefense 13674 Valley Blvd., City of Industry, CA 91746 Ph: 626-961-0562 www.usbiodefense.com â&#x20AC;˘ david@usbiodefense.com

www.vrexpo. net

Bovie Medical Corporation Andrew Makrides, President 734 Walt Whitman Road . Suite 207 Melville, NY 1 1747 Ph: 631-421-5452, Fax: 631-421 -5821 info@boviemedical.com www.boviemedical.com

THEVALUERICHMARKETPLACE

R 速 AMERICAN L:l SOFTWARE速 SYMBOL: AMSWA

EXCHANGE: NASOAQNM

SYMBOL: CXN

EXCHANGE: AMEX

INVESTMENT BANKING/BUSINESS OBJECTIVE:

American Software, Inc. seeks to grow through developing new relationships and alliances to market and support its products.

Circle Group Holdings, Inc. is seeking to develop new business contacts. Circle Group concentrates their resources on developing technologies where there is a convergence of interest among consumers, industries and governments in solving the problem.

COMPANY DESCRIPTION

The Company develops, markets and supports one of the industry's most comprehensive integrated business applications, including enterprise-wide, supply chain management, Internet commerce, financial, warehouse management and manufacturing packages. The Collaborative Supply Chain Management segment consists of Logility, Inc., an 86%-owned su bsidiary that provides collaborative su pply chain so lutions to optimize the production, distribution and management of products between trading partners

The company is a pioneer of emerging technology companies. It provides small business infrastructure, funding and intellectual capital to bring important life-c hanging technologies to market through all early phases of the commercialization process Circle Group focuses on the need s of emerging technology companies who provide life changing technologi es that solve one or more problems in the world.

CONTACT INFORMATION

American Software, Inc. James Edenfield, President & CEO Address: 470 East Paces Ferry Road, NE, Atlanta, GA 30305 Ph: 404-261-4381, Fax: 404-264-5514 invest@amsoftware.com www.amsoftware.com

Circle Group Holdings, Inc. Greg Halpern, CEO 1011 Campus Drive Mundelein, Illinois 60060 Ph: 847-549-6002, Fax: 847-549-6028 email: greg@crgq .com www.crgq.com www.ztrim.com

NCORPORATED SYMBOL: ICAO

EXCHANGE: NASADQSC

SYMBOL: PAM/PWZ

EXCHANGE: AM EX/Frankfurt

INVESTMENT BANKING/BUSINESS OBJECTIVE:

iCAD, Inc. seeks to increase shareholder value by exploring relationships to broaden the range of products available to its target markets.

Pacific CMA, Inc. seeks to develop alliances in strategic manufacturing / distribution locations throughout China.

COMPANY DESCRIPTION

iCAD, Inc. a medical imaging technology company, has developed and is marketing an FDA-approved Computer Aided Detection (CAD) system for the early diagnosis of breast cancer. iCAD offers the fastest CAD system available, the only system that can find asymmetries, and the most effective system available to detect breast masses.

Pacific CMA, Inc. is global, non-asset based logistics/freight forwarding company, providing supply chain logistics services. Services include freight forward ing and warehousing, including the coordination of shipping and storage of raw materials, supplies, components and finished goods.

CONTACT INFORMATION

W. Scott Parr, President and CEO, iCAD, Inc.

Pacific CMA, Inc. Henrik Christensen, Executive VP 1350 Avenue of the Americas, New York, NY 10019 Ph: 212-945-7117 henrik.christensen @pacificcma.com www.pacificcma.com

4 Townsend West, Suite 17, Nashua, NH 03063 Ph: 603-882-5200, Fax: 603-880-3843 spa rr@icadmed.com www.icadmed.com

64 1ValueRich Magazine Fall 2004

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{)URASWITCH. The world is switching.速 SYMBOL: DSWT

EXCHANGE: NASDAQSC

The Female Health Company

SYMBOL: FHCO.OB

EXCHANGE: OTCBB

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Duraswitch is seeking additional partners in licensing existing and new technologies, so as to benefit f rom di stribution through an established network. With over $5 million in cash and $12 million in minimum royalties for automotive applications from Delphi, Duraswitch feels well-positioned financially.

The Female Health Company seeks to fully commercialize the female condom on a global basis to aid in the fight against HIV/ AIDS and explore new opportunities to market and distribute its product.

COMPANY DESCRIPTION

Duraswitch licenses enabling technologies to established manufacturers and OEMs worldwide. Its focus is the multibillion dollar electronic-switch market: push buttons, rotary dials and mouse or cursor controls. Duraswitch holds patents on technologies which can be used for a wide range of commercial and industrial applications.Today, more than 100 applications in a wide range of industries use Duraswitch technologies.

The Female Health Company (FHC) is the maker of FC Female Condom ~ - the first and only female-initiated barrier method of contraception and protection against HIV/ AIDS and other sexually transmitted diseases. Female condoms play an important role in the global battle against AIDS. FC is available in more than 100 countries and throughout the United States and is sold commercially in 17 countries.

CONTACT INFORMATION

Heather Beshears, VP Corporate Communications 234 South Extension, Sec 203 Mesa, AZ 85210 Ph: 480-586-3300, Fax: 480-844-9625 heather@duraswitch.com www.duraswitch.com

The Female Health Company O.B. Parrish, Chairman and CEO 515 North State Street, Suite 2225, Chicago, IL 60610 Ph: 312-595 -9123, Fax: 312-595-9122 info@femalehealth .com www.femalehealth.com

Validlan SYMBOL: VLDI

EXCHANGE: OTC BB

INVESTMENT BANKING/BUSINESS OBJECTIVE: The Company is seeking to develop tactical alliances and additional partnerships in licensing its existing and new technologies. In late 2003/ early 2004 the Company rai sed $8.0 million for working capital, to expand its marketing programs and to add experienced personnel to its staff.

COMPANY DESCRIPTION In 2004, Validian Corp. launched the Application Security Infrastructure (ASI)its core technology platform - and its first two commercial products: Secure Instant Messenger (SIM) and Flash Communicator. ASI is an easy-to-use software infrastructure that enables organizations to rapidly deploy secure, collaborative applications sharing data over public or private networks. ASI is designed to provide low cost, easily implemented and managed secure communication and file transfer for distributed applications over distributed networks.

CONTACT INFORMATION Validian Corporation Steve Brown, VP Sales 30 Metcalf Street, 6th Floor Ottawa, Ontario Canada, K1 P 5L4 Ph: 888-229-5274, Fax: 613-230-6055 www.validian.com www.vrexpo.net

INVESTOR RELATIONS CONTACT Investors Stock Daily, Inc. Jody Janson, President 400 Andrews Street, Ste. 617 Rochester, NY 14604 Ph: 585-232-5440 Fax: 585-232-5457 jody@istockdaily.com www.istockdaily.com

~~II AERDSTRUCTURES , INC. 200A EXECUTIVE DRIVE • EDGEWOOD. NEW YORK 11 7 17 163 1! 586 -52 00 • FAX 163 1! 586-5 814

SYMBOL: CVU

EXCHANGE: AMEX

c tRx® ¥cORPORATION

SYMBOL: CYTRE

EXCHANGE: NASDAQSC

INVESTMENT BANKING/BUSINESS OBJECTIVE:

CPI Aerostructures, Inc. seeks market support. In February 2003, EarlyBird Capital managed an equity offering for CPI, raising $7.8 million in net proceeds, which eliminated bank debt and substantially increased working capital. EarlyBird continues to advise the Company.

CytRx seeks market support and/ or advisory services.

COMPANY DESCRIPTION

Founded in 1980 and based in Edgewood, Long Island, CPI Aerostructures, Inc. is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the armed forces. CPI has more than 23 years of experience with over 1,100 contracts completed.

CytRx Corporation is a ribonucleic acid (RNA) interference (RNAi) and biopharmaceutical company focused on the development and commercialization of high-value human therapeutics. CytRx has strengthened its ALS research program by teaming up with Massachusetts General Hospital to utilize CytRx's RNAi technology.

CONTACT INFORMATION

CPI Aerostructures, Inc. Edward Fred, President & CEO 200 A Executive Drive Edgewood, NY 1 1717 Ph: 631-586-5200, Fax: 631-586-5840 efred@cpiaero.com www.cpiaero.com

Steven Kriegsman, President and CEO 1 1726 San Vicente Blvd., Suite 650 Los Angeles, CA 90049 Ph: 31 0-826-5648, Fax: 31 0-826-61 39 stevenk@cytrx.com http://www.cytrx.com

ROYALE ENERGY, INC. SYMBOL: ROYL

EXCHANGE: NASDAQ

SYMBOL: SORC

EXCHANGE: NASDAQNM

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Royale Energy, lnc:s principal business includes acquisition of natural gas production and proven reserves, and drilling exploratory and developmental wells using 3-D siesmic imaging. Royale stockholders and direct working interest investors participate in natural gas ownership that offers tax advantages and monthly income. The Company allows participation in up to 50% of acquisition and drilling.

Source Interlink Companies, Inc. is seeking market support.

COMPANY DESCRIPTION

Incorporated in 1986, Royale successfully weathered the low energy pricing in that period and obtained natural gas reserves by acquiring producing wells and developmental properties in known field s. The Company greatly expanded operations in the 1990s, primarily in California's known natural gas-producing regions. Royale Energy began trading on the NASDAQ in 1994. The Company's total equity, asset and profit levels have brought it national recognition as a key independent producer.

Source Interlink Companies, Inc. is the largest direct-to-retail magazine distributor and leading provider of marketing and front-end management services to publishers, retailers and vendors throughout North America. The Company is also the leading custom designer and manufacturer of retail fixture displays for publishing, confectionary, and general merchandise products. Source Interlink reaches approximately 500 million consumers on a weekly basis.

CONTACT INFORMATION

Royale Energy, Inc. Chanda Ida no, Director of Marketing 7676 Hazard Center Dr. #1 500, San Diego, CA 92108 Ph: 800-447-8505 chanda@royl.com www.royl.com

Source Interlink Companies Contact: S. Leslie Flegel, Chairman and CEO 27500 Riverview Center Blvd, Suite 400 Bonita Springs, FL 34134 Ph: 239-949-4450, Fax: 239-949-7633 lflegel@sourceinterlink.com www.sourceinterlink.com

66 1ValueRich Magazine Fa\1 2004

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p~ HearusA

[U~lRI~ ~Ill EXCHANGE: AMEX

SYMBOL: ELC

SYMBOL: EAR

EXCHANGE: AMEX

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Electric City Corp. is seeking market support.

HearUSA is seeking market support. The Company seeks to expand the current 18,000 retail shareholders to include a significant percentage of inst itutional investors as a result of support from the right investment banking organization.

COMPANY DESCRIPTION

Electric City Corp. was founded in 1998 as a developer, manufacturer and integrator of energy saving technologies. Electric City provides focused, competitive and targeted energy-avoidance through demand-respon se/power-curtailment, retrofit services and distributed generation technologies.

Based in the U.S., HearUSA is engaged in providing professional hearing healt h care products and services. The Company has 157 company-owned and operated centers in 11 U.S. states and one Canadian Province, Ontario. In addition, the Company has a network of audiologists in 49 states. the Company is No. 3 in an industry of 2.5 billion (USD) with 11 ,000 remaining players. The Company is also the only accredited preferred provider organization in the United States (JCAHO).

CONTACT INFORMATION

CONTACT INFORMATION Electric City Corp. 1280 Landmeier Rd . Elk Grove Village, Illinois 60007 Ph: 847-437-1666 investor@elccorp.com www.elccorp.com

Glen Aksel rod, IR Consultant 141 Adelaide Street West, Suite1004 Toronto, Ont. M5H-3L5 Ph: 416-629-5245, Fa x: 416-203-0017 glen@thestockpage.com

Paul A. Brown, M.D., Chairman 1250 North point Parkway, West Palm Beach, FL 33407 Ph: 561-478-8770 ext. 123, Fax: 561-478-9603 pbrown@hearusa.com www.hearusa.com

TAB -IN TIER NAT I 0

SYMBOL: TASR

N A L"

EXCHANGE: NASDAQNM

SYMBOL: RUSS.OB

EXCHANGE: OTCBB

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Taser International, Inc. is seeking market support.

Whitney Information Network, Inc. is seeking market support

COMPANY DESCRIPTION

TASER International, Inc., is a leader in conducted energy weapons technology. The company provides advanced less-lethal weapons for the law enforcement, private security and personal defense markets.

Whitney Information Network, Inc. is a provider of post-secondary career training programs to educate students in the areas of real estate investing, business development, asset protection and financial management. The Company currently holds approximately 150 real estate preview trainings and basic real estate training academies each month. and approximately 16 to 20 Advanced Training programs. Approximately 35,000 new students register each month for the Company's programs.

CONTACT INFORMATION

TASER International, Inc. Phil Smith, Chairman 7860 East McClain Drive, Suite #2 Scottsdale, AZ 85260 Ph: 480-991-0797, Fax: 480-991-0791 phii@TASER.com www.taser.com www.vrexpo.net

Whitney Information Network, Inc. David Whitaker, Director, Corporate Communications and Investor Relations 1612 East Cape Coral Parkway, Cape Coral, FL 33904 Ph: 239-542-0643, Fax: 239-542-1490 davidwhitaker@russwhitney.com www.russwhitney.com Fall 2004 ValueRich Magazine 67

@JJirllover WI - F/

SYMBOL: AVWF.OB

SDNDRAN .ENERGY

CORP

EXCHANGE: OTCBB

SYMBOL: SNRN.OB

EXCHANGE: OTCBB

INVESTMENT BANKING/BUSINESS OBJECTIVE:

AirRover Wi -Fi is seeking market support.

Sonoran Energy, Inc. is an independent oi l and ga s company with a prese nce in Iraq, Peru and North America. Th e Company intend s to build a portfolio of high-producing oi l and gas fields in Iraq with production potential in excess of 50,000 barrels of oil per day (BOEPD), and is pursuing material and high -va lue global oil and gas upstream opportunities.

COMPANY DESCRIPTION

AirRover Wi-Fi Corp. (formerly Air-Q Wi-Fi Corporation) is a development-stage company that develops and operates wireless Internet access systems. It provides Wi-Fi Internet access in Louisiana, Arizona, Maryland, Pennsylvania and Washington, D.C. AirRover's "Wi-Fi " (hotspot) Internet access system operates on a platform comprising of Wi-Fi standard equipment that has been configured in a propri etary manner.

Sonoran acquires interests in land and producing properties through acquisition and lease on which it drills and/ or operates oil or gas wells in efforts to discover and/ or produce oil and gas. Crude oi l and natural gas produced from these properties are sold to various refineries and pipeline companies. The majority of oil and gas properties that Sonoran owns are in joint ventures with others in the industry. Sonoran's interests in these properties will vary depending on the avai lability of said interests and their locations.

CONTACT INFORMATION

Air RoverWi-Fi David Lofin, CEO 5555 Hilton Ave., Suite 207 Baton Rouge, LA 70808 Ph: 225-923-1 034 dloflin@airroverwifi.com www.airroverwifi.com

Sonoran Energy, Inc. Barry Forward, Investor Relations 1701 Westwind Drive, Suite 127 Ph: 866-599-7676 info@sonoranenergy.com www.sonoranenergy.com

Get the Holida ValueRich Ma SYMBOL: FLIP.OB

EXCHANGE: OTCBB

INVESTMENT BANKING/BUSINESS OBJECTIVE:

Subscribe Today

FTS Wireless is engaged in t argeted, strategic development to consolidate the highly fragmented cellular phone and services industry by developing, investing in and acquiring cash-flow-positive businesses and viable business projects, primarily those in the wireless indu stry, through its wholly owned subsidiary FTS Wire less Inc.

COMPANY DESCRIPTION FTS Wireless Inc. is an emerging reg ional operator of retail wireless locations. The company markets next-generation wireless products and services and operates Wi-Fi hotspots. The company markets and sell s products worldwide through its e-commerce sites, http://www.CellularDeals.com and http://www. SatPhoneCenter.com, and currently operates a chain of retail wireless locations in the Florida Gulf Coast region and the Philadelphia suburban market.

CONTACT INFORMATION FTS Wireless Scott Gallagher, CEO 1049C Oxford Valley Rd ., Levittown, PA 19057 Ph: 215-943-9979 sg @ftswireless.com www.ftswireless.com 68 1ValueRich Magazine Fall2004

www. valuerichon Ii ne.com

Choice or Chance: Small-Cap Stocks

n.Business

By Ronald D. Hunter When we consider the magnitude of the financial markets, along with the complexities of evaluating a given investment, the process of making an investment in a small- or micro-cap stock presents many challenges for today's investor. Finding value in a small-cap stock is analogous to finding a quality $10-$15 bottle of wine. You know it is out there; the challen ge is to find it. Most firms are reluctant, if not prohib-

investor's accountability in understanding the risk-adjusted proposition, along with

ited by company policy, to recommend any stock under $10 even if the firm provides analyst coverage, which is rare. If a stock is thinly traded, selling under $5 without ana-

Big companies are small companies that grew up. We must find the proper vehicle to assist in the growth process. Whether you are just beginning to build

lyst coverage, then the stock vi rtually has no chance of being presented to the markets. Without an organized delivery system for small-cap stocks, the buying public rarely has access to information necessary to conduct its own due diligence. Then, of course, there is the issue of the

a portfolio or are a seasoned high-networth investor, it pays to remember that people build companies - companies do not build themselves. Above all, you are buying the integrity, work ethic and intellectual capital of a company. These ingredients fuel the passion and commit-

www.vrex po.net

the potential rewards. A great majority of equities in this category have strong ties to the local community where they are domiciled . It seems to me that a system involving local and regional representation from brokers and investment advisers who are familiar with the management and the culture of a company would be a good start in assisting these smaller-cap stocks.

Ronald D. Hunter is th e Chairman and CEO of Standard Man agement Corporati on (SMAN ), a hea lth and finan cial serv ices holding co mpa ny.

ment that keep the entrepreneu rial spirit alive. I believe any CEO worth investing in would welcome a request for information regarding his or her company. Education is not expensive, but ignorance can be quite costly. If investors and financi al professionals do their homework, America offers many hidden treasures. R www.smancorp.com

Fall 2004 Value Rich Maga zine 169

Big 4 expertise with responsive, flexible service.

Sarbanes Oxley Compliance Internal and External Audit Transactional Planning Individual & Entity Taxation Federal, Multistate & International Tax Intercompany Transfer Pricing Cost Segregation Wealth Management Technology

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n.Business

How to Escape the Small-Cap Trap By Ralph V. De Martino Small-cap and micro-cap companies are finding themselves in a predicament that is without precedent in recent history. The number of small investment banks that cater to their interests has dwindled substantially over the last 10 years. The number of analysts that follow small-cap companies has also declined precipitously. Not surprisingly, retail investor interest in the small-cap segment has waned, and institutional interest is often scarce due to small public float and impaired market liquidity. Thus, it has become increasingly difficult to be noticed in the capital markets. At the same time, the traditional advantages of being public have evaporated for many such companies. Volume and stock price have suffered, causing a lack of liquidity in the markets for their securities, and extinguishing the currency of their stock for capital formation and acquisition purposes. Finally, the costs of being public in the postSarbanes-Oxley legal environment and in the aftermath of Enron, WorldCom and Adelphia have skyrocketed. Audit and legal fees, as well as director and officer insurance premiums have escalated by a factor of 50 to 200 percent. And, to add insult to injury, the class action plaintiff's bar (which historically ignored small-cap companies) has developed a penchant for bringing cases against companies with market caps as small as $10 million. As a result, boards of directors of small- and micro-cap companies across the United States have become distracted from their companies' core business issues and are struggling with survival in this trying environment. Much of the dialogue regarding these issues has focused on the boards of directors, largely as a result of the reorientation that has occurred in the

Ralph V. De Martino is a corporate securities lawyer and Managing Partner of Dilworth Paxson LLP, Washington, D.C. He has substantial experience in private placements and the issues encountered by NASD member firms. He serves on the American Bar Association Federal Regulation of Securit ies Committee Subcommittee on NASD Corporate Financing Rules, which addresses issues arising under NASD Rule 2710.

The Small-Cap Trap ... continued on next page www.vrexpo. net

Fall 2004 Value Rich Magazine I 71

The Small-Cap Trap ... continued from page 71

regulatory scheme. While the challenges facing public company boards today are substantial, and the success of the companies they serve is in large part dependent upon their performance, t his orientation is not sufficient to exit the t rap faced by smallcap companies and get back on track, realizing public company opportunity. The first step in exiting the trap is the realization by management that public companies, more than ever, have two businesses: their core operations and the business of being a public company. The opportunities of one cannot be pursued without the realization of the objectives of the other. Thus, traditional business planning needs to be fundamentally

little sponsorship. The AMEX may be a fundamentally better home for the company at a particular stage in its business development and the development of the market for its securities (assuming, of course, that the team has done its job and identified the right specialist for its securities). The first task is the identification of the key members of the

The good news is that the dilemma faced by small-cap companies today is being faced by everyone in the rna rketp Iace ... "

modified, so as to blend the business plan of both the company's core business and the business of being public. The small-cap companies that are weathering the current storm and growing their businesses are the companies that have successfully implemented this strategy.

team and a determination of their required skill sets. Each of the providers should have broad business experience and substantial contacts so that the team can leverage upon

the individual experiences and contacts of each of its members. It is no longer sufficient that a director, lawyer or accountant, for example, be technically competent only in his or her field of expertise. He or she must be business-savvy and well connected. Multidisciplinary acumen of its team members means enhanced value for the company and its board.

However, the good news is that the dilemma faced by small-cap companies today is being faced by everyone in the marketplace, including their public competitors. That gives rise to a tremendous opportunity, not only to expand through "in store" growth while competitors' management teams are distracted dealing with the current market environment, but also to expand operations and realize economies of scale through strategic acquisitions of failed or struggling companies also caught in the trap. Where do you begin? As is the case of any business plan, one of the essential challenges is the identification and creation of the team, along with its objectives, responsibilities and challenges. In today's world, management must expand its view of the talents and constituents of its team . In addition to the traditional members of the team, today's environment requires that the team concept be broadened to include those parties that traditionally served as technical advisers -the auditors, the lawyers, the investment bankers, the public relations professionals and other key professionals. As in any good business planning, nothing should be assumed or taken for granted, including the identity of the participants, whether being public is right for the company, and whether the company's cu rrent securities market is the right market, to name just a few. Exchange listing is a good example to illustrate this point. Though the Nasdaq National Market (NMS) may generally be considered more prestigious than the American Stock Exchange (AMEX), NMS can be a hostile place for a company with

72 1Value Rich Magazine

Fall 2004

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The second step in the process is to identify the near and longterm objectives and to set upon a plan to execute those objectives. For example, assume that similarly situated companies in your business segment are suffering from the same lack of equity

The cynic may say that this approach is costly and time-consuming, but experience has demonstrated that the alternative, though expedient, is pound-foolish, resulting in the isolation of management and, often, the abandonment by the capital markets of the company's securities.

capital and the same overhead burden of being public that your company is suffering. If their public markets are suffering from poor performance and a lack of liquidity, that circumstance may

Another common criticism would be that it sounds great in the abstract but is not so easy to accomplish in reality. In real estate,

represent a substantial consolidation opportunity for you.

there is a truism that success is based upon three key ingredients:

The team must have the ability to identify such candidates while simultaneously addressing its own public market issues so

location, location, location. In business, I would suggest that success is based on three different ingredients: management,

as to construct a scenario in wh ich the company represents an

management, management. Except that in the case of small-cap

attractive consolid ation vehicle. Thus the business plan, including the plan for managing "being public;' must be well-conceived

companies in today's operating environment, the definition of the word 'management' should be broadened .

to attract appropriate investment bankers and buy-side analysts,

If small-cap executives make an investment of resources in identifying key members of their team, over the long term the

and enable your pu blic relations professionals to assist you in getting the word out. Ideally, you would have sold your investment bankers on your business opportunities and your plan to utilize

company will be rewarded substantially. Good investment bankers will know good financial public relations professionals, who

your public status to help real ize those opportunities prior to

will know good lawyers, who will know good directors, who will

commencing any particular project, and they would be an inte-

know good investment professionals, and idea. V R

gral part of the team .

well, you get the

Composites include accounts w1th like objectives whiCh are managed based on model portfolios at StrategiC Adv1sors Corp and 1ts aff11iate Strategic Capital Partners Inc. Certam accounts are subject to different fee and commiSSIOn schedules than new accounts Returns are net of fees and commiSSions and have been translated from Canadian to US dollars Past performance 1s no guarantee of future returns. ww w.v rex po. net

Fal l 2004 ValueRich Magaz ine

Courting Biotech By Liza Grant Smith

74 1ValueRich Magazine Fall 2004

After a messy breakup with the high-tech industry, America has found a new sweetheart in biotech, and metropolitan areas everywhere are scrambling to make themselves eligible suitors.

www.va Iuerichonlin e.co m

he course of love does not always run smoothly. Not long ago, America was infatuated with high tech. Mesmerized by the industry's growth promises and dazzling stories of innovation, regional economic organizations across the nation were striving to become the next Silicon Valley. They formed task forces, spent countless man-hours and invested millions of dollars in pursuit of the relationship they felt would guarantee future economic profitability and health. Unfortunately, that love story did not have

knowledge to new projects. Figures and estimates paint the picture of a burgeoning industry with a bright future. Biotech has exploded in the past decade, with U.S. revenue growing from $8 billion in 1992 to $39.2 billion in 2003. Industry profitability by 2008, as predicted in a recent Ernst and Young report, indicates a future of greater stability and predictability. Added to this is a huge run -up in the National Institute of Health's budget in recent years, which translates to significantly more research dollars for grants, the

graphic concentrations of interconnected entities in a common field of interest. The interactions among research institutes, universities, financial sources, governmental agencies and other related companies promotes both competition and cooperation, ultimately stimulating productivity along with wealth creation. Clusters also produce an intellectual pull. Hearing success stories and hoping to replicate results, enterprises and individuals with similar goals and relevant skills migrate to the successful cluster locations. Through a unique spirit of community and the free exchange of information, the cluster grows and feeds upon itself, with innovation primarily remaining within the confines of the region .

and business closures with no turnaround in sight. They could not afford to dwell

lifeblood of biotech firms. Last, but certainly not least, one cannot overlook the golden heart of the industry. Biotech, at its essence, strives to benefit the human race. Appealing to politicians and citizens alike, biotech is in

on their disappointment and immediately began seeking out new objects of their

business to save the world. Speaking at the Biotechnology Industry Organization's

affection. Enter biotech on its proverbial

2003 annual meeting, President Bush

infrastructure, regions have no chance

white horse.

tasked the biotech industry with curing diseases, ending global hunger and pro-

to become meaningful biotech players. Considered by many leading analysts to

tecting America from biological attack. It's

be the growth industry of the 21st cen-

a tall order, but one that biotech is willing

tury, regional economies are not willing to let biotech slip through their fingers. Subtle courting is unacceptable - economic development organizations across the nation are formulating attack plans.

a happy ending. After the technology meltdown, regional economies found themselves dazed and battered in the wa ke of countless layoffs

The Lure of Biotech On the surface, biotech seems like the perfect mate. Smart, attractive and wealthy, the indust ry also boasts a bright projected future and the noblest of goals. Biotech's overwhelming appeal stems primarily from the fact that it offers highpaying, clean jobs for highly educated individuals. In California, the leading biotech state, salaries in the biotech industry average $64,000, about $29,000 more than the national average. High-paying biotech jobs are especially attractive in today's market, as comparably compensated high-tech jobs rapidly disappear. Many argue that while the biotech and high-tech industries share an entrepreneurial upside, biotech's downside is less steep. The drug development and testing process is longer, but revenue and head count grow more rapidly following the clinical stage. Plus, the intellectual property of failed cli nical trials has value for future endeavors as scientists bring their www.vrex po.net

to pursue. For many regions striving for prosperity, biotech appears to be a dream come true. However, attaining the dream requires more than mere industry infatuation. It begins with fundamental understanding of the concept of clustering.

Clustering "Clusters of existing and emerging science-based technologies are crucial factors in shaping the economic winners and losers of the first half of the 21st century;' write the authors of a 2004 Milken Institute biotech study. While this may be an aggressive stance, there is no denying that clusters are the key building blocks for successful biotech development. Fueled by innovation and intellect, biotech is an organism that thrives in an environment of support and interdependence. As such, it forms clusters, or geo-

The concept of clustering is directly responsible for the aggressive nature of those courting biotech. Without a cluster

The Players Focus and desire do not guarantee success. Forty states have made biotech a top priority in terms of economic development. According to the Milken study, however, only a handful of metropolitan areas have succeeded on the scale needed to ensure industry sustainability. This begs the question of what it takes to successfully seduce biotech. Every leading biotech cluster has a different formula for success, but most build upon the same basic components: a research infrastructure, entrepreneurial support, a rich talent pool, the presence of major companies and available real estate. While these demands are difficult Fa ll 2004 ValueRich Magazine I 75

and supporting entities. While it is third in the Milken study's overall ranking of biotech clusters, Raleigh-Durham-Chapel Hill received the top score in both Human Capital and Biotech Workforce. Jamie Nunnelly, Communications Director for the Research Triangle Foundation, identifies this availability of workforce as one of the area's key distinguishing factors. "We >..r::

have some outstanding programs here both in the universities and the community college system;' says Nunnelly. Still, the region knows that maintaining a leadership position requires ongoing dedication to the initiative. Barry Teater,

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for many regions to meet, there are a select few who appear to have won over biotech's fickle heart.

Raleigh-Durham-Chapel Hill Raleigh-Durham-Chapel Hill is a tes-

ment;' says Teater. "Bankrolling small compan ies until they can produce products and revenue

before biotech was a glimmer in most

streams is difficult. This is especially true when the stock market is stagnant and

Known as a sleepy Navy town 20 years

metros' eyes, the area's leaders founded

few biotech companies are going pub-

ago, San Diego now shares the title of top

the North Carolina Biotechnology Center (NCBC), making North Carolina the first

lic. There are fewer 'exit' opportunities for investors to cash out their investments

state to officially have a biotech initiative.

and therefore less incentive for venture

The region built up the biotech industry with the help of research universities, venture capital funds, a trained workforce

capital investments to be made in young

San Diego

biotech cluster in the nation. The creation of the San Diego cluster, known as Biotech Beach, is a story of evolution rather than targeted effort. Much of the region's success is due to the close proximity of three worldrenowned biological research institutes:

tament to perseverance. In 1981 , long

capital investments as one of the greatest challenges going forward. "Biotech is a high-risk, capital-intensive business with a typically long time for return on invest-

companies:' Teater asserts that the state and NCBC

The North Carolina Biotechnology Center, Raleigh-Durham-Chapel Hill, N.C.

the University of California at San Diego, the Scripps Research Institute and the Salk

Institute. Business leaders eager to encourage growth and support for the industry emptied their wallets into the area's universities. This monetary infusion ultimately led to the formation of programs that continue to churn out a steady stream of talented graduates equipped to join the local biotech workforce. The region capitalized on its strong military presence as well as ties between business and academia to create a biotech powerhouse. 76 1ValueRich Magazine Fall 2004

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have taken steps to stimulate biotech venture capital investments th rough tax cred-

an energetic and deep-pocketed philanthropic community and available land for

its and other initiat ives.

development. With Scripps as an anchor, economic

Palm Beach Some would consider Palm Beach an unlikely contender. While it may not have historically run w ith the big boys, the region's economic officials suggest that its day is coming. With the recent announcement that the San Diego-based Scripps Research Institute will open a sister center

leaders are depending on the power of clustering. "We consider Scripps Florida to be just the starting point;' Hines says. "The

again st squandering limited resources in pursuit of biotech. "The distribution of the biotech indu stry in the U.S. has essentially 'locked ' in" to its current arrangement, much as the QWERTY pattern has locked into keyboards;' Cortright says. "There are powerful business advantages to firm s,

BOB's vision is to attract other world-class

investors, entrepreneurs and especially

institutes to Palm Beach County. Those institutes will attract, from within their

workers to being located in one of these clusters. This makes it all but impossible

in Palm Beach County, the area's biotech presence has ta ken a huge leap forward. "It is unlikely any area in the U.S. will replace California as the nation's leading bioscience location;' says Erin Heston, Communications Manager for Enterprise Florida, the state's economic development organization. "However, Scripps Florida and the cluster of bioscience companies

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that will locate in proximity to Scripps Florida could move Palm Beach County/ South Florida into the ranks of the top ten bioscience cluster areas of the U.S:' Gary Hines, Senior VP of Development

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for the Busines s Development Board (BDB), the official economic development

Business Development Board President Larry Pelton; Dr. Richard Lerner, Scripps President,

organization of Palm Beach county and

and Governor Jeb Bush (left to right) announce Scripps intended venture in Palm Beach.

an Enterprise Florida partner, echoes that sentiment. "The fact that they selected Palm Beach County speaks volumes about the assets of the county and its potential to become a dynamic bioscience technology center;' says Hines. Many are hoping the deal, which is estimated to bring 6,500 jobs and generate $1.6 billion in additional income to Floridians in the first 15 years, will serve as a foundation for the development of Palm Beach's biotech cluster. In fact, they're betting money on it. In addition to $200 million from Palm Beach County, Scripps will receive $3 10 million in state funds to pay for equipment and salaries. The BDB, responsible for the Scripps decision, asserts that the area is more than merely a wealthy suitor. Among its other attributes are a high quality of life, a vibrant university research community, www.vrex po. net

own circle of influence, allied companies and their vendors and suppliers:'

Happily Ever After? We all know fairy tales have no place in the world of economics. Some critics claim that is just what biotech is. Joe Cortright, economist and co-author of the study "Signs of Life: The Growth of Biotechnology Centers in the U.S.;' believes America's fascination with biotech is more a facto r of economic development communities' herd mentality than the strength of biotech. While many regions are banking on biotech to save their economies, Cortright points out that "no biotech firm is among the 25 largest private employers in the region in which it is located:' He cautions non -leading regions

for somebody who doesn't already have a substantial concentration of biotech to grow one:' Starry-eyed and smitten, economic regions refuse to give up on biotech despite the inevitable pessimists and intense competition . The result is a market ripe for investment, which venture capital firms are eager to explore. In 2003, biotech grabbed 19.9 percent of all VC investments. In addition, half of the year's 10 biggest venture capital deals were in biotech and other health sta rt-ups. While there is no guarantee of a happily ever after for regional economies, biotech investors are content to capitalize on the romance. VR

Information: www.ncbiotech.org www.scripps.edu www.bdb.org Fall 2004 ValueRich Magazine I 77

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SinterCast

and the Engine of the Future

By David Willson

Compacted Graphite Iron (CGI) was cre-

There is a revolution taking place in metallurgy- one that already is yielding stronger, lighter and more durable diesel engine blocks, and that eventually will improve gasoline engines and other products with high-performance cast metal applications. 80 IValueRich Magazine Fall 2004

ated in 1949.1t has an atomic structure that makes it at least 75 percent stronger, 45 percent stiffer and approximately twice as resistant to metal fatigue as conventional gray iron castings. The fatigue strength of CGI is up to five times higher than that of aluminum at elevated temperatures.

CGI provides superior castability, thermal conductivity and machinability to ductile iron. As such, CGI is an ideally suited solution for complex components that are subjected to high mechanical and thermal loading. Several attempts have been made over the last 50 years to master high-volume www.valuerichonline.com

CGI production, but because of the narrow range within wh ich the atomic structure of the metal is stable, efforts were largely unsuccessful. While CGI has been applied to a variety of uses, it has been mostly in low-volume applications or in components w ith relative ly simple geometry. Reliable high-volume production ofCGI had to await the development of modern data acquisition and computer analysis technologies. SinterCast AB (OTC: SRVQF.

a two-year study to develop a material property database. This database is now used throughout the industry and has served as the basis of both the new Iron Castings Engineering Handbook chap-

the solutions were developed to enable the machining of CGI engine blocks in high volume with the same cycle time and with the same surface quality and dimensional tolerance as gray iron .

ter on CGI, published by the American Foundry Society, and the new International Organization for Standardization (ISO)

have prevented CGI from going into production have been eliminated . Through

standard for CGI, slated to be issued during 2006. Dr. Dawson also has been named cha irman of the ISO Committee assigned

PK), a Swedish company, has combined modern data technology with its metallurgical know-how, marketing muscle and

its methodical approach, SinterCast nurtured high-volume CGI production into a reality, and now has an open running space with the technical hurdles behind them. In the process they have amassed 24 patents with 115 national phase applications in up to 14 countries around the world.

strong financial backing to create the final realization of CGI's potential. "The metallurgical understanding of CGI and its pro-

SinterCast has delivered prototypes to 54 different car, truck

cess control requirements has increased dramati -

and

engine

manufacturers,

demonst rating that CGI is not simply a niche product, but rather a new material that the automotive industry is t aking seriously.

cally over the past 25 years. Even so, if you take away the computer, the industry can't make CGI;' says Dr. Steve Dawson, president and CEO of

The foundry industry also is taking the product seriously

SinterCast.

and investing in CGI production technology to support

CGI Revolution

The SinterCast story began at the University of Stockholm in 1983, when a professor applied for a patent on his method of controlling CGI casting . In 1991 , SinterCast began to develop his

the development activities and future production requirements of its automotive customers. To date, SinterCast has established installations and production agreements with

ideas into a sellable product that could be delivered to foundries for application in the production environment.

to develop the new CGI standard.

To date, SinterCast has produced over 100,000 prototype and pre-production castings at 62 foundries in 14 countries around the world, gaining the foundry industry's confidence in the reliable production of CGI. By 1996, these foundries began approaching original equipment man ufacturers (OEMs) of the car and truck industry to produce CGI engine blocks with the help of SinterCast. SinterCast aided the OEMs in implementing CGI technology by conducting

Once that data was available for the OEMs to optimize their CGI designs, they began manufacturing prototypes in higher volumes and found that some of the machining operations were significantly more difficult than with conventional gray cast iron. Because CGI is stronger and stiffer, it is also more difficult to cut. The machining issue was a barrier to high-volume series production, so SinterCast spent four more years working intensively with the industry to resolve the problems. By 2000, all of

www.vrex po.net

All of the hurdles that otherwise could

The Ford 2.7-liter V6 CGI diesel engine

foundries that account for approximately 40 percent of the world production capacity for cast iron cylinder blocks and heads. These foundries represent the leading edge, so SinterCast estimates it actually has around 60 percent of the realistic CGI manufacturing base for the near future in its camp. Ford's CGI Engine

The first-ever high -volume production of a CGI diesel engine cylinder block began at the Tupy foundry in Brazil using the SinterCast process. The 2.7-liter V6 engine, which Ford has developed with PSA Peugeot Citroen, is targeted fo r proFall 2004 ValueRich Magazine 181

The JaguarS Type uses the 2.7-liter V6 diesel engine manufactured at the Tupy foundry in Brazil using the SinterCast process.

have halved. As a resu lt, diesel sales have

duction of more than one million passenger car diesel units. Initial volumes are 150,000 a year. Ford and PSA have invested over $430 million in the manufactu ri ng and engineering of this engine. With a performance of 207 horsepower, the engine provides best-in-class specific performance. The engine is shorter than other V6 diesel engines thanks to CGI construction and, with a fully assembled weight of 445 pounds, it is the lightest engine in its class- even compared with aluminum rivals. The engine made its debut in the Jaguar S-type in June 2004. Ford and PSA forecast its use in at least 10 different vehicle lines,

Next for SinterCast

increased to approximately 45 percent of

The future has just begun for CGI, and Katrineholm, Sweden- based SinterCast is

all new European passenger vehicles. In the automotive industry, change is

leading the way. The SinterCast CGI strategy is divided into five waves of market development based on addressing first the greatest marketplace needs, where near-term potential is most tangible. The internal combustion pressures in

based on technical or economical need. As stated by Professor Robert Dover, former chairman & CEO of Jaguar and Land Rover, at the SinterCast 2004 annual shareholder meeting in Stockholm: "We didn't do the CGI program because we wanted to

diesel engines have increased by approximately 35 percent since 1999. Horsepower

enjoy the technology, we did the program because we wanted the best engine" The strongest initial need for CGI occurs with V-type diesel engines in Europe,

and torque performance levels have doubled and the noise and emissions

including Jaguar, Ford, Peugeot, Citroen and Land Rover vehicles, and it likely will be used in the first Land Rover diesel marketed in the United States. A high-performance bi-turbo version of the CGI V6 providing 230 horsepower and massive torque was introduced in the Jaguar R-06 concept car at the 2003 Frankfurt Motor Show. The engine can propel the lightweight car to 60 mph in less than six seconds and already satisfies Euro IV emissions legislation pending in 2005. The R-06 also is destined to become the first James Bond vehicle to be equ ipped with a diesel engine. 82 1ValueRich Magazine Fall 2004

The Jaguar R-06 concept car features a next generation high-performance CGI V6. www.valuerichonline .co m

The Plan

SinterCast Market Growth in Five Waves SinterCast management has divided potential markets and growth into five waves occurring over the next 20 years. SinterCast will derive income from production activities, new installations, annual software licenses, engineering services and spare parts. In order to compare the potential of the different market sectors, SinterCast's internal calculations are made in terms of"engine equivalents:' Each "equivalent" is defined as one 11 0-pound cylinder block.

First Wave of CGI Production Beginning in 1999, V-type diesel engine blocks in the European market Annual passenger car sales in Europe: 15 million At 40% diesel penetration, number of diesels: 6 million Assume 15% of diesels are V-type: 0.9 million With an average weight of approximately 143 pounds per CGI V-block, the first-wave opportunity represents approximately 1.2 million engine equivalents.

Assume 85% of diesels are in-line: 5.1 million CGI will likely be applied to higher-performance versions of these smaller engines first, due to pricing constraints, but development trends toward higher peak firing pressures and downsizing will increase longer-term CGI market potential. At an average weight of approximately 88 pounds per in-line CGI diesel engine cylinder block, the total European in-line diesel market currently represents an opportunity of approximately 4 million engine equivalents.

Fourth Wave of CGI Production After 2007, diesel passenger vehicles in America Sources are predicting a rapid increase in diesel popularity after the introduction of low-sulfur fuels in America in 2006 -possibly reaching parity with Europe's 50% diesel penetration by 2020. This wave assumes a 15% diesel penetration in 2010, primarily for the SUV and pickup truck sectors, which currently account for 50% of all passenger vehicle sales in America .

Second Wave of CGI Production Beginning from 2004-2006, commercial vehicle in-line and V-type engine blocks and cylinder heads in Europe, Asia and the Americas Annual global commercial vehicle sales: 1 million Assume 20% V-type commercial engines: 0.2 million Number of commercial vehicle blocks: 1 million Number of commercial vehicle heads: 1.2 million At an average cylinder block weight of 662 pounds and an average cylinder head weight of 276 pounds (both values typical of 12-liter engines), the second-wave opportunity represents approximately 9 million engine equivalents.

Third Wave of CGI Production Beginning from 2004-2007, smaller in-line passenger car diesel engines in Europe In-line engines provide the highest volume for European passenger cars, with displacement ranging from approximately 1.2 to 2.2 liters. European diesel market share should continue to increase to approximately 50 percent during this period, potentially increasing the ultimate size of this wave. Annual passenger car sales in Europe: 15 million At 40% diesel penetration, number of diesels: 6 million

www.vrexpo.net

Annual passenger vehicle sales in USA: 17 million At 15% diesel penetration, number of diesels: 2.6 million Assuming that two-thirds of the American diesel engines will be V-type (typical block weight 176 pounds) and onethird will be in-line (typical block weight 132 pounds), the fourth wave represents an opportunity of approximately 3.8 million engine equivalents.

Fifth Wave of CGI Production After 2008, the possible application of CGI to gasoline engines Future design objectives such as increased displacement through reducing bore-wall thickness or cost-effective downsizing and weight reduction in comparison with aluminum will encourage CGI application in gasoline engines. Positive CGI experiences in the diesel sector should increase industry confidence and generate product commitments in the gasoline sector. Total annual gasoline engine vehicle sales are approximately 40 million units worldwide. Assuming an average petrol engine cylinder block weight of 66 pounds, the entire fifth wave equates to an approximate opportunity of 24 million engine equivalents.

Fall 2004 ValueRich Magazine 183

use engines of this class and CGI can be used to achieve improved performance with weight reduction and downsizing. In this third wave, the larger opportunity for SinterCast is to enable the production of a heavily loaded small CGI engine - a 1.2or 1.4-liter engine with the performance of a 1.8- or 2.0-liter engine. Initial high-volume production references will come from the Vs, the in-lines and commercial vehicles between 2004 and 2006. Once the industry has these references, the volume will ramp up. These represent the first three waves of growth opportunity for SinterCast. Diesel in the U.S.

Several factors have caused diesel engines to be more popular in Europe than in the United States. European legislative focus has been on reducing fuel consumption and greenhouse emissions. By contrast, legislators in the U.S. have been more concerned with particulates and their health risks. As a result, only two-tenths of a percent of the vehicles in the United States are currently diesel. However,

newly

designed

diesel

engines are actually cleaner than a mod-

SinterCast CEO Dr. Steve Dawson has shepherded high volume CGI production into a reality.

where consumer demand for higher performance is greatest- particularly in the luxury sector. The complex mechanical loading patterns of high-performance V-type diesel engines are specifically addressed by the properties of engine blocks manufactu red from CGI castings. The very severe fatigue cycle in these engines is like a tug of war - one piston going left, the other going right. V-type engines also command a higher price premium and are therefore more able to accommodate the increased cost of CGI. The first wave actually began in 1999 with production of the Audi 3.3-liter V8 diesel engine at the Halberg foundry in Germany. The Tupy foundry followed shortly t hereafter with its high-volume

84 1ValueRich Magazine

Fall 2004

Ford-PSA 2.7-liter V6 engine. Other Vengine commitments, including an upgrade of the Audi V8 to 4.0 liters, also have been announced. SinterCast is concurrently developing CGI applications for the cylinder blocks and cylinder heads of commercial vehicles in the 8-to-16-liter class, a ready market that represents the second wave of development. Because of the size and weight of these engines, this represents a large market potential for SinterCast, whose business model is based primarily on a per-ton technology license fee. In short order, SinterCast expects that CGI will also find applications for in-line engine blocks in the 1.6-to-2.4liter class with four or five cylinders. The vast majority of European passenger cars

ern gasoline engine in terms of carbon dioxide, nitrogen oxides and particulates. And diesel fuel contains 11 percent more energy per gallon than gasoline. Passenger car diesel engines use 30 percent to 60 percent less fuel than gasoline engines of similar power. Ward's AutoWorld recently calculated that if the U.S. had a 40 percent share of diesel engines, similar to Europe today, it would save double the amount of crude oil that it presently imports from Iraq. Finally, American diesel fuel currently has a high sulfur level of about 500 parts per million, compared with 15 ppm in most European countries. New legislation in the U.S. will require low-sulfur fuel as of 2006. Once this standard is required, the overwhelming benefits of modern diesel engines will create an opportunity for U.S. auto makers. Sport utility vehicles and pickup trucks, www. va lu erichonl ine.com

which now represent more than 50 percent of new vehicle sales in the U.S., are prime candidates to benefit. Each of the Big Three manufacturers is currently developing new diesel engines for its 2007-08 model year, a good indication of the future prospects for diesel growth in North America . As the world industry leader in CGI, SinterCast is ideally situated to take advantage of this fourth wave of opportunity. Gasoline Engines and More The fifth market wave for SinterCast will be the possible application of CGI to gasoline engines. Here, CGI provides the opportunity for cost-effective weight reduction in comparison with aluminum, particularly in the larger V6, V8 and V1 0 classes. Impetus for this phase likely will come from the early use of CGI in racing engines and increased confidence in CGI from diesel-sector production references. In the non-automotive field, SinterCast has been actively involved in the production of engine frames, cylinder heads and piston rings for industrial power generators. SinterCast has begun successful series production with Daros, Rolls-Royce Power Engineeri ng and, most recently, General Electric locomotive engines in the United States. As a provider of process control solutions for the reliable high-volume produc-

The Teksid foundry in Brazil produces CGI cylinder heads for heavy-duty use in police boats.

To date, SinterCast has investigated more than 150 different potential appli-

tion of CGI, SinterCast has a target market that includes any casting application that can benefit from the higher strength, stiffness, durability and wear resistance

cations for CGI. However, the SinterCast strategy is to concentrate near-term on the area of greatest need - high-vol-

ofCGI. SinterCast also has been actively

ume applications in automotive engine blocks. While the worldwide production

involved in the production of cylinder liners for heavy-duty diesel engines, brake discs and drums for passenger vehicles, commercial vehicles, trains and motorsport applications, exhaust manifolds, flywheels, bedplates, ingot molds and a variety of other components. At the small end of the scale, SinterCast has recently begun production of CGI clutch and flywheel components for the new Aston Martin flagship Vanquish

of CGI engines was only about 5,000 units in 2002, that number could exceed one million engines during 2007, and that is with activation of only the first two of the SinterCast five CGI waves. This year the automotive industry will make approximately 45 million passenger car blocks and maybe 1.5 million truck blocks. If you consider that a truck engine is about six times heavier than a car engine, then 1.5 million becomes 9 million passenger car equivalents. So you

sports car. www.v re xpo.net

end up with approximately 54 million engine equivalents. It's a huge market. As SinterCast CEO Dr. Steve Dawson puts it: "We are well-positioned in the world foundry industry, and we will continue to build on our foundry relationships to secure more and more of the world block and head capacity. After a long and successful development period, high-volume passenger car production has started and we are now looking forward to other high-volume production commitments in both the car and truck sectors. Our focus has shifted from market development to production support - producing good CGI castings is the most powerful sales message we can deliver:' V R www.sintercast.com Fall 2004 Value Rich Magazine I 85

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n.Spiration

Thomas Werner

Art as Business

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The marriage between art and commerce is always a difficult one. When this union is successful, it provides us with some of life's greatest pleasures. Maintaining balance between being an artist and being an entrepreneur presents a series of unusual challenges and choices. For Thomas Werner these choices www.v rex po.n et

30'~

2003, Thomas Werner, Lambda print, edition 1/1 .

have taken many forms, the center of which is Thomas Werner Gallery, a contemporary art gallery based in New York's Chelsea art district. Exhibiting a mix of photography, drawing and painting at a variety of prices, the gallery attracts the interests of corporations, private businesses and established

collectors, and yet still has the flexibility to nurture artists in the initial stages of developing a collection . The gallery handles the collections of a select group of mid-career and emerging artists. It is essential to work with artists who have long-term goals and understand the necessity of building a career as well as Fall 2004 ValueRich Magazine I B7

number of panels, and founded the ASMP nationwide Fine Art Specialty Group. He is currently on the national board of this 5,300-member organization. "This was a period of enormous growth that set the groundwork for our future endeavors. The network of contacts created at that time grew exponentially and the experience was essential;' says Werner. Werner is now leading a series of seminars to help nonprofit boards improve their functionality and meet challenges in a changing environment. Werner's activities have also led to a position at the Parsons School of Design in New York,

Shot Put Cage, 40"x SO'~ 2003, Mae Fatto, Lambda print, signed on verso, edition 1/5.

value for their collectors, says Werner. The gallery began as an offshoot of Thomas Werner Images, a commercial

corporations looking for a specific piece of art or desiring a long-term partnership in

photography business whose clients have included Bank of America, Swiss Re, Courvoisier, Twentieth Century Fox, The New York Times, E! television, William

building a collection. "We are a full -service gallery;' Werner comments. "This new art-consulting company will allow us to offer artwork from outside the gallery, as well as more spe-

Morrow Publishing, Glamour, Face, Forbes and People magazine.

cialized consulting on a project-by-project basis."

Today, a growing number of related endeavors surround the gallery, creating a multi-layered artistic and business network. Werner is launching an independent art consulting firm for clients with large-scale projects, and individuals or

The consulting business is the culmination of a series of events that began in late 2001 when Werner was offered the opportunity to co-curate an art collection for a division of Swiss Re, as well as exhibit his fine art photographs in a Manhattan gallery. Earlier that year Werner had been elected to his first term of ' 路three as president of the 800-

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Thomas Werner 88 1ValueRich Magazine Fall 2004

where he teaches business practices for artists and photographers and coordinates the photography department's new fashion photography track. Over the past year, design houses such as Max Mara, Hermes and Burberry have joined in partnership with the program. The final piece of the puzzle fell into place early this year when Werner was asked to present a series of seminars on the business of fine art photography. As a gallerist and an artist he brings a unique perspective to the table. After successful events in New York, Chicago and Los Angeles, a full slate of speaking engagements is planned nationwide. Werner is currently completing a book on the subject due out next year. Werner's activities with professional associations, academia, the fashion industry and publishing are bound to raise the visibility of the gallery and the new consulting firm over the course of the next

member New York Chapter

year, as well as expand the company's client base beyond New York City. All in alii have been lucky, says Werner.

of the American Society of Media Photographers (ASMP). Werner was instrumental in boosting the sagging membership of the ASMP, as well as increasing sponsorship and programming . During this period Werner also chaired the Bradshaw Leadership Conference, moderated a

have been able to pursue my goals creatively while growing the business. People ask if managing multiple projects is doable, but none of these projects would take place without the others, and life would certainly be less exciting . Thomas Werner Gallery is located at 526 West 26th Street, Suite 712, New York City. VR www.thomaswernergallery.com www. val uerichon Ii ne. co m

C-4, 45"x 32'~ 2003, Thomas Werner, Lambda print, signed on verso, edition 1/2.

www.vrexpo. net

Fall 2004 ValueRich Maga zine 189

2X u"' E

90 I ValueRich Magazine Fa ll 2004

www. va lu eri chonlin e. co m

By David Willson teve McQueen was the coolest movie star on the planet. William Claxton made his photojournalistic reputation by captur-

ing cool on film. He began in the 1950s by photographin g jazz greats like Charlie "Bird " Parker, Billie Holliday, Ch et Baker, Dinah Washington and Miles Davis in an

unequaled series of natural portra its as they broke the bounds of music. Claxton has a habit of befriending his subjects, becoming a part of their lives and capturing them in their most intimate moments. So it's no wonder that when he received an assignment from Life magazine to photograph Natalie Wood and Steve McQueen as they filmed Love with the Proper Stranger, he befriended them

my generation's questing teenage years

Berlinetta, and a slew of Triumph and

and set the "cool " standard for all of us. I began reading Claxton's book with that big-star concept firmly fixed in my mind, but after only a few pages I found myself comfortably engaged with

Honda Gold Wing motorcycles tearing up the desert.

Steve McQueen as an approachable guy. Claxton's oblique narrative rarely describes

Empire State Building, reporters using Graflex Speed Graphics cameras, t rench

what is already evident in each photograph. Instead, it is a series of pithy anecdotes that delve further into McQueen's

coats, bob hairdos and button-down Gant shirts. We are whisked back to a time and

motivations, taking us deeper into the relationship they shared and inviting us along as participants.

It may be that Steve McQueen : William

with McQueen from the moment they met. "His look was chilling;' Claxton writes.

Claxton Photographs will be best appre-

ciated if you are a boomer-aged guy, but Claxton and Taschen have produced an artfully conceived book that should

"I felt that he knew everything about me in a split second. He was a street-smart, animal-like non-i ntellectual, and hip. In

appeal to just about anyone. It illu strates how Steve McQueen defined an era now

fact, he brought new meaning to the word

brought his came ra. Steve McQueen: William Clax ton Photographs, by Taschen Books, is 190 pages of images f rom their time together. It is a testament to Claxton's eye and skill th at it does more than simply show a movie star at work and play. Claxton brings a lost era alive through his subject. Fo r those of us who came of age in the 1960s, McQueen was a bigger star than John Wayne. I was 11 years old when he was first etched into the collective mind of young America with his tough-minded, iconoclastic performance in The Great Escape. Bullitt ushered me into my senior year of high school. Those films bracketed www.vrexpo.net

place when men tinkered with mechanical things, before the words "digital" and "virtual " took on new meanings in our everyday vocabulary. I can't recall ever seeing printed pages more poignant than Cla xton's photos on the set of Baby, the Rain Must Fall when the cast and crew learned of President Kennedy's assassination .

both. He knew that he was in for a wild ride

hip: he was super-hip:' Claxton and McQueen became buddies- two young guys who liked to hang out together, ride in McQueen's fast cars, race motorcycles in the desert, take road trips and knock around. Claxton always

Claxton's photos are like thin ly cut slices in time. We see a New York City skyline completely dominated by the

lost - a concept that inspired current rock star Sheryl Crow to write in her song Steve McQueen:

Claxton's photographs bring a lost era to life.

Claxton writes frankly about McQueen's difficulty in trusting people, his drug use and his problematic relationships with women, but also shows us a fun-loving, outrageous guy who was a devoted fam ily man. Interestingly, while McQueen becomes more human and accessible, the cool factor remains. It's impossible to think of him otherwise as we witness his love of cars and motorcycles - and his propensity for utterly destroying them in his perverse quest for excitement. It's a gas just looking at McQueen's Shelby Cobra, his gorgeous Jaguar XKSS, his '63 Ferrari 250 GT Lusso

"We got rockstars in the Whitehouse All our popstars look like porn All my heroes hit the highway They don't hang out here no more You can call me anytime You can page me all night long But you won't catch this freebird I'll already be long gone Like Steve McQueen All we need's a fast machine And we're gonna make it all right" -

Sheryl Crow R

Information: Steve McQueen: William Clax ton Photographs

$19.99 Taschen Books www.taschen.com Fall 2004 ValueRich Magazine 191

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Society of Illustrators

WHAT'S BEHIND THE RED DOOR? By Martha Moffett

Many historic illustrations, such as Norman Rockwell's "Dover Coach;' grace the members' dining room of the Society of Illustrators. At 128 East 63rd Street, in the midst of

illustrators; illustrators in The New York

some of New York's finest hotels, townhouses, major museums and fine stores,

Times; original works created for the U.S. Air Force; and the Annual Exhibition, on

there is a five -story conve rted carriage house with a fire-engine red door and the words "Society of Illustrators" cut into the granite lintel above. Behind that door is

display for eight weeks, of the best of the preceding year's illustrations. Be sure to visit the museum shop near the entrance, where the posters are a

a hidden gem: the Museum of American Illustration . Walk right in - it's free. You will step into a world of imagination, the likes of which are duplicated nowhere else in the world. In Gallery 1 on the lower level and in Gallery 2 on the street level, you'll see both contempora ry and historical illustrative art. The museum's 2004-2005 exhibits include the works of Mary Petty, a cover artist for The New Yorker; children's book

special attraction and the publications of the Society are worth a special look, especially the yearly volumes of the Annual of American Illustration. For updates on museum shows, which change frequently, check the museum calendar on their Web site. The Society was formed in 1901 , when illustrators were celebrities; they illustrated the day's magazines, newspapers and books, explaining the text or showing what happened in a story. Members

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included Howard Pyle, Maxfield Parrish, N.C. Wyeth, Charles Dana Gibson (creator ofthe Gibson Girl) and James Montgomery Flagg (best known for his Uncle Sam poster "I Want You"). At first, the Society used hotel ballrooms for its meetings, dinners, award ceremonies and balls. The Society's "outrageous" artists-and-models variety shows and dances were fodder for the tabloids. One year the police raided the show primarily because the mayor was miffed that he wasn't invited. In 1939 the Society purchased a carriage house on the Upper East Side as its headquarters for $33,000, a steep price tag for those days. The 10-year mortgage was coming due when the 1948111ustrators Ball fund raiser was held at the Waldorf-Astoria. Fall 2004 ValueRich Maga zine 193

Records show that Gloria Swanson, Ethel Merman, the Kennedy family, and mayors Jimmy Walker and Fiorello LaGua rdia were some of the luminaries who helped pay off the mortgage. After a look at the current exhibit, take the stairwell up to the Society of Illustrators members floo r. The Hall of Fame and the Society's history are on display in letters, photos and posters dating back to the very early days. Works are visible from the Permanent Collection, which is home for more than 3,000 works of art by many of the greatest names in American painting and illustration. The collection continues to expand. In the private dining room, a buffet lunch is served Tuesday through Fridayone of New York's best soup-to-nuts bargains, and a benefit of membership. The Society still conducts weekly life-study

94 1ValueRich Magazine Fall 2004

sessions and drawing classes and acts as a national advocacy and professional association for illustrators. On the fourth floor the Norman Price Library houses numerous volumes relating to the art of illustration, while the archives include unique biographical and historical material available to all. It used to be that once an illustration was published, it was discarded. Then, in the 1970s, galleries started noticing a market for vintage illustrations and many illustrators began to hold on to their rights on sales of rep roductions, and the limitededition print market took off. Affordability and accessibility make illustrations a good way to get your feet wet in art collecting. An original illustration by Norman Rockwell, AI Hirschfeld, Milton Glaser, Seymour Chwast or Maurice Sendak commands a high price. Younger illustrators

such as Brad Holland, Gary Kelley and Guy Billout are being discovered by collectors . Author Tom Wolfe, who was once a young reporter/ illustrator, has said: "For years I've felt that the Annual published by the Society of Illustrators is better than all the catalogs of all the contemporary art shows put together. It's full of work that connects with the world :' He added, "I feel very comfortable predicting that art historians 50 years from now will look back on the illustrators as the great American artists of the second half of the 20th centu ry:' Looking at the exhibits at the Museum of Ame rican Illustration, it seems clear that the vast body of work created for the mass media is truly America's art - yet many native New Yorkers and visitors don't even know that it exists. VR

www.societyillustrators.org

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One of the benefits of a "Friend of the Museum" membership is the feeling of having your own "private club" in New York City, complete with private members' bar and restaurant, where you can rub elbows with artists and publishers and other interesting people. There are several levels of membership, but the fee for a "Friend " is $200. For this, you get advance notice of all lectu res, auctions and awards events; 20 percent discount on all Museum Shop purchases (check out the poste rs!); a complimentary copy of the college -level Scholarship Catalogue; a copy of the Illustrators Annual at 50 percent saving; and an invitation to two exhibition openings each year. The Board of Directors has extended benefits to include access to the members' bar and restaurant for lunch.

The Society of Illustrators presents the 15th Members Open Exhibition in Galleries 1 and 2, with more than 200 works of art by

The red door of The Society of Illustrator's can be found at 128 East 63rd Street.

members, in such areas as paperback covers, children's books, advertising, annual reports and other forms. This annual event has come to be called "Our Own Show" by members. As part of the event, The Stevan Dohanos award (which

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an artist can win only once) will be presented. Dohan os, a member of the Illustrators Hall of Fame, created federal office murals, covers for The Saturday Evening Post and other magazines, and more than 40 U.S. postal stamps in his long career.

Fall 2004 ValueRich Mag azine j 95

le Three Boutique Hotels

Inn of the Anasazi deluxe rooms each have unique floor plans with special features such as this open courtyard.

By David Willson

anta Fe is an oasis of refined lifestyle in the middle of the Southwest. Many fabulous homes, retreats and ranches belonging to successful entrepreneurs and famous entertainers are nestled in the surrounding hills. The area's unique culture and climate attract sophisticated and affluent visitors from around the world.

96 1ValueRich Magazine Fall 2004

The Santa Fe area is well known for spas and resorts set in spectacular natura l surroundings, such as the world-famous Bishop's Lodge and the Japanese-style Ten Thousand Waves. But if you want to stay near the historic plaza, art galleries, restaurants and entertainment, three outstanding choices will make your stay in Santa Fe a sumptuous experience. www.valu erichonlin e. com

x.Peditions Cliff Dweller Chic The Inn of the Anasazi is literally a few steps away from the Indian market in Santa Fe's historic Plaza. You can't get much more central to all the fine food, shopping and Southwestern atmosphere that Santa Fe offers. Though architecturally distinctive, the hotel's exterior blends perfectly with surrounding 100-yea r-old adobe buildings. Once you are inside the lobby, the outstanding interior design of this intimate hotel begins to work its magic and you know you are someplace special. Santa Fe-style ceilings constructed of herringbone-patterned wooden latillas supported by massive vigas (beams made from solid pinon trunks), ornately carved doors, adobe fireplaces and liberal use of flagstones artfully blend prehistoric sensibilities with cont emporary proportions. The ultimate impression is that of a totally hip centuries-old pueblo. Off the lobby, through ornately carved doors, the Anasazi restaurant blends Native American foods with Northern New Mexican traditions, featuring free-range meats such as elk and buffalo. The basement wine cellar boasts one of the best

wine collections in New Mexico. Chef Tom Kerpon specializes in creating dinners for groups of 10 to 14 in the cellar's private dining area, with each course based on a selection of fine wine. With its own Washington Avenue entrance, the cozy bar at the Anasazi is a favorite of guests and locals alike. The blending of stone, dark wood, Chimayo weavings and top-shelf liquors creates an air of relaxed sophistication. The Inn of the Anasazi is a personal favorite of New Mexico Governor Bill Richardson, who uses it for board-level meetings and accommodations for VIP guests. Recently, the first-floor library was enlarged while retaining its cozy quality with fireplace, overstuffed chairs and sofas. The library can ea sily be converted for special events, corporate meetings and presentations, utilizing hidden audiovisual equipment. All guest rooms are located along hallways that originate at a sandstone waterfall wall rising through a central three-story atrium space open to skylights above. The soothing sound adds ambience while the water adds humidity to the residential levels of the hotel -an added comfort in the dry Santa Fe climate. The doors throughout the Inn are carved and stained in designs

The Anasazi restaurant has a Native American-inspired menu. www.vre xpo. net

Inn of the Anasazi faces the Santa Fe Plaza.

gas fireplace and sitting area. Guest amenities include honor bar, towels and robes - everything one would expect f rom a

inspired by Native American weavings, emul ating the cliff dwellers' practice of

fine hotel. Each room has an entertainment center and guests can select movies from the hotel library free of charge. Select Superior and Deluxe rooms have varied floor plans with unique architectural details and are large enough for entertaining. They typically feature a balcony patio nestled in flowering trees or enhanced sitting rooms and usually can be combined with adjacent rooms as suites. Though

using tapestries to cover doorways. Each spacious room is unique, with handhewn ceilings, hardwood floors, original art and handwoven tapestries and rugs. Fourposter canopy beds are lavishly covered in Frette linens. All rooms feature a clean-burning

occupancy is often full, the concierge is able to meet special room-configuration requests most of the time with several weeks' advance notice. Concierge services include everything from packing and shipping merchandise purchased by guests, to helpful treatments and oxygen for altitude sickness. Private guides are available for guest excursions to Chaco Canyon, Bandelier National Monument and other sites, including eight Indian pueblos. Fall 2004 ValueRich Magazine 197

The Inn of the Five Graces occupies several historic adobe buildings surrounding beautiful interconnected courtyards.

The Inn of the Anasazi also offers adventure packages that include day trips by private "Wild Angels" King Air 200 twinengine aircraft to Canyon de Chelly, White Sands National Monument and the Grand Canyon, and to the Telluride, Colorado, ski area. Guests travel easily and comfortably

for a traditional room to $405 for a Deluxe room during the winter (lowest season), and $295 to $475 during peak summer months and early fall.

to the d istant locations and return the same evening to their luxury rooms. The packages include two nights in a Superior King room, breakfast each morning and the private flights. The 57-room, Four-Star, Four-Diamond Inn of the Anasazi has built a reputation over the last 13 years as being one of Santa Fe's finest contemporary Southwestern boutique hotels. Rates range from $199

It is a Tibetan custom to offer five gifts, called the Five Graces, to a holy man in exchange for blessings before traveling. The gifts celebrate the five human senses, preparing the way to experience a journey to its fullest. The Inn of the Five Graces lives up to its name as a delight to all of the senses. The Inn consists of several 100-year-old adobe buildings and a 1938 stone house

98 1ValueRich Magazine Fall 2004

www.innoftheanasazi.com Santa Fe Shangri-la

Secluded courtyards serve as intimate breakfast areas and host the Five Graces' evening wine receptions. www.valuerichonline.com

surrounding a group of interconnected courtyards designed to create numerous private retreats fo r guests. The resulting impression is of an exclusive residential enclave, cloistered from the bustling tourism of Santa Fe's alleyways and Plaza. The re are 22 romantic and luxurious suites, not just decorated but furnished and constructed with ornate Asian tap-

manufactured by the Inn's parent company, The Garrett Group, and delivers the ultimate in sleep comfort. Turndown service includes some of Santa Fe's finest cookies and Native American dream catchers and fetishes carved from semiprecious stones to ensure pleasant dreams, good luck and protection during your stay. It's like being

estries, Kilim rugs, louvers, tile mosaics, hand-hewn furniture, carved doors and

visited by the tooth fairy eve ry night. Overwhelming sights, the smells of

shutters, intricate metalwork and inlays, antique pottery and art from over 13 count ries around the world . Each unique multiroom suite opens into pa rlors, dining rooms, living rooms, kitchens and tiled baths. It is exotic and intimate- as if you have stepped into an Oriental fable wh ere you are the favored guest of a wealthy potentate. The truly royal treatment is fully realized when you climb into your bed covered

sage and aromatic spices, the sound of cloistered silence and the touch of luxury - the rooms themselves are a delight to the physical senses that the Inn is named after. But that is only the beginning of the Inn of the Five Graces experience, because General Manager Niall Reid brings a healthy dose of the sixth sense to the Inn by anticipating your every desire. About a week before your arrival, you can expect a telephone call from Reid

by hand-sewn 212-count Egyptian and Belgian cotton-fitted sheets. The mattress and featherbed are specially designed and

with questions about any special needs you may have: what special food and drink you might want in the already well-

Each suite at the Inn of the Five Graces is a fairy tale of exotic furnishings.

The Five Graces' beds delight the five senses.

stocked refrigerator, or maybe a special room configuration . Guests are invited daily to enlightening afternoon walks with Reid through the narrow streets of Santa Fe, culminating in a relaxed wine affair in one of the Inn's beautiful courtyards. He never forgets a name, and once he learns what your interests are, he's ready to individualize your Santa Fe experience with some inside knowledge or connection . For instance, if you are an art lover, Reid will tell you that Santa Fe's finest art collect ion is not housed in any of the local galleries or museums - it's in the State Capitol Building just around the corner. In fact, the main goal at th e Inn of th e Five Graces seems to be finding some unique way for each guest to expe rience Santa Fe. For instance, the staff can arrange for a backstage tour of the Santa Fe Opera (the wig room is the most fun). And the Inn offers sensory delight adventures, such as a "Sight" program where you receive ali-day individual photography instruction from a professional photographer at the Santa Fe Workshops and a "Taste" class with chef John Vollertsen

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Fall 2004 ValueRich Magazine 199

rooms and excellent amenities, providing

of Las Casas Cooking School, which takes place in the home kitchen of a local Santa Fe artist.

Tiwa language welcome, "Mah-waan, Mahwaan;' carved in the entrance doors as they walk past Allan Houser's huge bronze

meetings. But as movie stars and wealthy

The concierge will pair you with your own guide for road trips to ancient ruins, local pueblos and state parks.

sculpture titled "Apache Spirit Dancers" and enter the hotel lobby. The hotel is immersed in the art, artifacts and customs of the Southwestern pueblos. The 13-year-old, 40-room, 88-suite hotel has gained a steady following as a

entrepreneurs began flocking to Santa Fe in the 1990s, the Picuris and their partners saw an opportunity to fill the need for

Guests are greeted every morning with a printed newsletter full of current events, museum exhibits, theater and movie listings, and a weather report. The Inn has

moderately-priced lodge with comfortable

a unique setting for families, groups and

more ultra-posh accommodations in the area. So plans were set in motion to build the Hacienda at Hotel Santa Fe. Set apart from the main hotel in an inti-

several of Santa Fe's best massage therapists on call, including a dog masseuse. Yes, you can bring your dog and treat it to a day at the doggie spa, starting with an interview with the pet communicator. They even have a pet portrait painter and photographer available. Or if you left your pet at home, they'll loan you one to walk in the nearby park. Reid likes to describe the Inn affectionately as "Indian spice trade meets rock 'n' roll:' He is particularly proud of the fact that the Inn has never had a dissatisfied guest, and that many take the time to write personal letters to thank him for a wonderful time. The Inn of the Five Graces is an incomparable experience. Because of the Inn's small size, The Garrett Group and Niall Reid have been able to combine a col lection of international antiques and art with old Southwestern ambience, comfort and service for Santa Fe's most sensually

Owned by the Picuris Pueblo, the Hacienda features art from 19 New Mexican pueblos.

extravagant sojourn. Prices range from $295 to $470, including a well-stocked refrigerator, bath luxuries and a courtyard breakfast.

www.fivegraces.com Go Native in the Hacienda The Hotel Santa Fe is the only Native American majority-owned hotel in the United States. It was opened in 1991 by a partnership of the Picuris Pueblo and a group of Santa Fe and New York real estate and hotel professionals. Their goal was to provide the historic yet struggling pueblo with economic stability. Members of the Picuris Pueblo are offered first choice for employment and occupy about 50 percent of the staff positions. Guests and visitors are greeted by the 100 IValueRich Magazine Fall2004

Ute village panorama photograph, circa 1930, from the Hacienda collection.

www. valuerichon Ii ne. com

mate private setting, The Hacienda was designed from the beginning to provide the ultimate in exclusive comfort and luxury, with a floor plan centered around full butler service for 35 impeccably appointed rooms and suites. The Four-Star, Four-Diamond Hacienda at Hotel Santa Fe was scheduled to open on September 28, 2001. Of course, the timing couldn't have been worse, 17 days after the September 11 attacks that all but shut down the nation's air tourism. Still, there was no turning back. The Hacienda's first scheduled g uest was Queen Noor of Jordan, someone who could hardly be canceled, even under the worst of circumstances. Fortunately, w ith its discreet setting, electronically keyed and butler-monitored entrance, and private top-floor lounge, The Hacienda was just the right size and configuration for top-level management and incentive meetings, attracting companies such as Apple and McGraw-Hill. Additionally, an aggressive state incentive package bro ught feature filmmaking to the area, and The Hacienda is proving to be a Hollywood favorite. Its cloistered and secure environment is ideal for the actors, directors and producers to rela x and plan the day's shoot in a comfortThe Tiwa language welcome, "Mah-waan, Mah-wann;' is carved in the entrance doors .

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The Hacienda's spacious and luxurious rooms blend modern upscale fixtures with traditional Native American arts.

able, private and well-serviced setting. Additionally, the main hotel offers ideal lodgings for the rest of the crew. The Hacienda is also popular with

exhibit from 19 New Mexican pueblos and other tribes across the United States.

Europeans, who, unlike many Americans, are comfortable with and know how to make the most of butler service. Hacienda butlers contact hotel guests weeks ahead of their stay to arrange special amenities, book reservations and make transportation arrangements. The check-in procedure atThe Hacienda is designed to be a seamless experience. Upon arrival, guests are greeted by their butler, who personally escorts them to their rooms, helps them settle in, offers

porary Native American works of art and historical artifacts is displayed in illumi-

Available only to guests and their visitors, this important collection of 72 contem-

nated niches along the hallways, and as decorations and furnishings in the lobby, meeting room and lounge. The guest rooms are also decorated with contemporary works by well known Native American

to unpack, then notes the newspapers of choice and any other special needs, such as reservations or other arrange-

artists. All rooms and suit es are spacious, with cozy corner fireplaces, lofty and sumptuous duvet-covered beds, 10-foot ceilings and handcrafted Southwestern

ments. Giving cred it card information is the only business Hacienda guests conduct. From that point on, the room is fully prepared with all of the amenities they have requested . A Hacienda butler is available to serve cocktails or meals in the rooftop lounge for guests and their visitors upon request. While staying at The Hacienda, guests are surrounded by The Hacienda's collection of Native American art - a private

furn ishings. The Hacienda blends the latest highquality fi xtures and furnishings with Southwestern historical sensibilities. Bathrooms are spacious and lavishly finished in granite and marble, featuring walk-in glass-on-glass enclosed showers. The room's seating areas, armoires and entertainment centers offer up-to-date quality and technology. Even the fireplace has a remote control.

102 1ValueRich Magazine Fall2004

Hotel Santa Fe offers many unique Native American programs for groups, such as blessing ceremonies, drum circles, storytelling, a friendship dance, bread baking, private art festivals and tepee celebrations. A permanent tepee erected in the hotel courtyard is used for retreats, board meetings and Native Americanthemed dinners. Trips also can be arranged to visit the Picuris Pueblo in its beautiful hidden mountain valley between Santa Fe and Taos, as well as other local destinations. Hotel Santa Fe's restaurant Maya serves good-quality fare, with Native Americaninspired specialties on the menu, or you can ask your butler to make reservations and arrange transportation to any of the outstanding restaurants that Santa Fe ha s to offer. The Hacienda at Hotel Santa Fe offers immersion in Native Am erican culture while providing high-quality lu xury accommodations. Rates range from $199 for a Hacienda Fireplace Room to $399 for the White Buffalo Suite during the winter (lowest season), and $289 to $499 during the peak summer months of July and August. R

www.hotelsantafe.com www. va IuerichonIin e.com

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Fall 20 04 ValueRich Magazine 1103

Sorrel Jelly with Lem on Cream and Osetra Caviar

104 1ValueRich Magazine Fall 2004

www. va luerichonl ine.com

By Karen Willson Photos By Tim Turner

The Inn at Litt e Washington " the best dishes are ones stolen from yesterday and enlivened with the flavors of today" - macaroni and cheese with Virginia country ham; Lilliputian bacon, lettuce and tomato sandwiches; sole fingers with green herb mayonnaise (remember Mrs. Paul 's fish sticks?). Patrick O'Connell, often referred to as the Pope of American Cuisine, takes comfort foods of our childhood and turns them into vastly refined versions of American favorites. His second book, Patrick O'Connell's Refined American Cuisine: The Inn at Little

Washington , is much more than an exqui-

up through a Dole pineapple ring, sur-

site rendition of our youth depicted in dreamy recipes such as glazed oysters

rounded by a chiffonade of iceberg lettuce, with a dollop of Hellmann's mayon-

drunk on champagne, pistachio-crusted lamb chops on rutabaga rosti and gingered carrot sauce, and strawberry-rhu-

naise dripping down the sides- capped off by a Maraschino cherry:' O'Connell tells us "mysteriously, when my brothers

barb shortcake with creme fralche ice cream. Chef O'Connell shares his passion, artistry and techniques with us, at the same time recounting humorous

and I began to reach puberty, the salads disappeared from my mother's entertaining repertoire . .. alii can say is, that's a dish I never had the balls to serve! "

tales of his upbringing and his love for American food and entertaining. One tale describes his mother's sig-

In the chapter "Ruminations on the Title;' O'Connell attempts to answer the

nature dish of "a banana coming straight

of food do you serve in your restaurant?"

seemingly simple question "What kind

The Inn at Little Washington has won Mobil's Five-Star award for dining and lodging for the last 14 years.

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Fall 2004 ValueRich Magazine 105

~{)~_s

Refined American Cuisine

Patrick O'Connell's Refined American Cuisine (above) is an evolutionary step for American standard recipes. Patrick and counterpart Joby (left) obviously share a similar taste in fashion.

After a simmering explanation, he boils it down to three words: refined American cuisine. "It has taken me a long time to realize that what I've been doing over the last quarter century at the Inn at Little Washington is evolving and refining many of the dishes I grew up with, making them relevant to a new century while keeping their soul intact - building a sort of cul inary bridge between the past and future:' Each recipe begins with a personal comment, explanation or tip on preparation, technique or presentation. As a self-taught chef, O'Connell shares tricks of the trade with detailed steps that are easy to follow. Photographs of the finished product, by award-winning photographer Tim Turner, resemble fine art prints that can't help but make the reader salivate. An extra plus are pictures of the Inn, people and surrounding landscapes. On entertaining, Chef O'Connell says, "I believe in introducing a bit of whimsy 106 1ValueRich Magazine Fal l 2004

when setting a table:' For a springtime affair, tabletops were sprinkled with flower petals, strewn with colorful seed packets, and scattered with ground Oreo cookies, which looked like dirt. O'Connell says he "gave the guests plenty to talk about as they traded seed packets and built up enough courage to eat 'dirt:" The Inn at Little Washington was selected as one of the top 10 restaurants in the world by Patricia Wells, renowned restaurant critic for the International Herald Tribune, who describes O'Connell as "a

with a dance hall above it. Chef O'Connell hopes the response to his second book will be as overwhelming as his first, The Inn at Little Washington Cookbook: A Consuming Passion, and that it will inspire readers to rethink favorite family recipes and update them for today's tastes. He states, "I am confident that with these recipes you can produce dazzling and delicious meals for your family and guests without spending all day in the kitchen. Most of my favorite dishes are the simplest and depend on a few ingredi-

rare chef with a sense of near-perfect taste, like a musician with perfect pitch:' Nestled in the foothills of the Blue Ridge Mountains in Virginia, 67 miles from Washington, D.C., the Inn has been the

ents of the finest quality. "I like food to appear effortless in its

recipient of many prestigious awards and has won Mobil's Five-Star award for dining and lodging for the last 14 years. The book also gives a brief history of the Inn, which was created by O'Connell and Reinhardt Lynch in 1978 from a structure built in 1895 that had evolved into a gas station

human hands, or stacked and tortured as was the trend for a while:' Chef O'Connell's recent book, with more than 150 recipes, is bound to inspire and delight cooks from the novice to the experienced, and perhaps give us a new way of looking at our American heritage. R

presentation - as though it dropped on the plate from the sky or was blown onto it by a gentle breeze - never touched by

www.valu eri chonlin e.com

The Taste of Paradise速

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Do Say Viognier!

(vee-oh-NYAY)

By Greg Allikas

Tired of soft, flabby Chardonnay? Or thin, acidy Sauvignon Blanc? Looking for a white table wine with some personality?

Photos by Greg Allikas

108 1ValueRich Magazine Fall2004

www. valuerichonline.com

Then you should try Viognier, a Rhone grape variety that has become increasingly popular among California winemakers. Statewide plantings of the grape have risen from about 130 acres in 1992 to over 2,000 acres in 2002. From Santa Barbara north to Napa and east to Lodi, Viognier (pronounced vee-oh-NYAY) is showing up

other winemakers to it. Interestingly, many winemakers who produce Viognier maintain a "hands off" practice, allowing the qualities of the grape and vineyard to show off on their own without much embellishment.

wineries. In France, this grape variety produces the rare white wines ofthe northern Rhone appellations, Condrieu and Chateau Grillet. It is also added to the blend of some red

John Alban of Alban Vineyards states, "We use oak to soften it, not to oak it. The wine needs to define itself:' Viognier is grouped in a category of white grape varieties, along with Muscat, Gewurztraminer and Riesling, that contain aromatic floral compounds called terpens. Stylistically, California Viognier can range

Cote Rotie wines. Worldwide, the variety has been planted in Australia, Argentina, Italy and in the United States. In addition

from simple fruity, acid wines to rich, buttery blockbusters. My favorites have a spicy quality that suggests a combination

to California, Oregon and Virginia also produce the wine. Due to its spicy flavor, Viognier may

of Chardonnay and Gewurztraminer followed by a long buttery fini sh. Some Viognier wines may taste petil-

never replace Chardonnay as America's white wine. But it is gaining recognition among wine critics and restaurateurs, and

lant, yet they are not. Some may offer a sweet sensation, yet they are dry. California Viognier generally ranges from

distribution is on the increase -

13-14.5 percent alcohol providing the body to stand up to highly flavored foods. The best wines offer a perfumed nose of honeysuckle and luscious peach-pear flavors on the palate.

in the portfolios of more and more fine

espe-

cially in the West. When dining out, people are often shy about ordering Viognier because the name is difficult to pronounce. In the vineyard, Viognier presents a different set of cha ll enges. The grape grows well in warmer microclimates, where it produces wines of tropical fruit affinities, but it can be alcoholic and difficult to keep in balance. The grape seems to have better flavor development in cooler climates but may have difficulty ripening; just as the grapes ripen, the acidity drops off. This reputatio n of being "hard to grow" and "hard to ripen" may keep Viognier as an experimental grape for some wineries, but it is exactly this chall enge that attracts

www.v rexpo. net

Pairing Viognier with Food Viognier is suitable to a broader range of foods than Chardonnay or Sauvignon Blanc. Its spicy "gewurz-like" character makes the wine a perfect accompaniment to Indian and Thai curries or something as simple as grilled bratwurst. Although the peach-apricot tropical fruit flavors go well with shellfish and fish, the smooth, rich, buttery finish of many Viogniers can overpower delicate fish like sole or pompano unless there is a bit of acidity, such as from a lemon sauce. Viognier can easily make it through the salad course as long as the dressing is not overly acidic. A few chunks of salty cheese such as feta on a salad will serve to bring out the wine's fruit. The apparent sweet taste but lack of actual sweetness suggests that Viognier would work well with a cheese course. Cheese such as aged provolone or salty blue cheese like Stilton are often served with Sauternes or Beau me de Venise; Viognier can easily be served from beginning to end of a meal. Elegant wines such as the Alban wine show their best qualities served with plain roasted or grilled fowl or pork.

Four Excellent Viognier Wines Over a decade ago, Georges du

Boeuf (of flower-labeled Beaujolais fame) was offering a wine simply labeled "Viognier:' This wine introduced me to the varietal ch aracteristics of the grape and provided a welcome alternative to Chard onnay. To my knowledge the wine is no longer available. Following are comments on four wines that have reasonably wide distribution and offer a good introduction to Viogn ier. Viognier wines continued on page 110

Fa ll 2004 ValueRich Magaz ine 1109

John Alban started his winery in 1989 with the intent of focusing on Rhone varietals. Thanks in large part to Alban's efforts, Rhones are gaining a larger fol lowing among U.S. wine drinkers. With a master's degree in enology and sense of style, Alban is at the forefront of the everincreasing Rhone grape movement. Alban's wines are possibly the best

Iron Horse Vineyards T-bar-T 2002 Cuvee R Sauvignon BlancNiognier blend

examples of Rhone varietal wines produced in America. The vineyards are locat-

This unusual blend makes for a nice introduction to Viognier. Although comprising only 15 percent of the blend, the grape readily lends its varietal character to this finely crafted wine. Iron Horse is a marriage of two vineyards: the Sterling family estate in Sonoma County's cool, foggy Green Valley and son-in-law Forrest Tancer's T-bar T Ranch in the Alexander Valley. The winery itself is near Sebastopol,

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ed in the Edna Valley, just a few miles from the Pacific Ocean, south of Paso Robles and San Luis Obispo. Alban's 2002 Edna Valley Viognier, a supremely elegant wine, is the most "French" wine of this group. It is easy to recognize a finely crafted wine when all elements are in such perfect balance. A first sniff is reminiscent of Riesling fol -

between Santa Rosa and the Pacific Ocean.

of the Alexander Valley. The property sits in the foothills rising to an elevation of 800 feet. Whole fruit is gently pressed (not

lowed by yeasty floral notes. As the wine warms, aromas of honeysuckle and melon are followed by lush flavors of peach and hazelnut with smoky flinty undertones. Hints of anise and black pepper give way to a rich butterscotch finish that lingers without any trace of bitterness. Medium

crushed) and barrel fermented in a combination of French and American oak, and left sur-lie for five months.

gold color and thick texture make this wine a pleasure to sip. 14.7 percent alcohol. About $30.

The grapes for this wine come from the T-bar-T Vineyard in the northeast corner

Winemaker Forrest Tancer took a leap of faith in creating this wine, but the two grapes work admirably together to showcase the best of both. Blueberries and lychees on the nose with floral undertones give way to smooth buttery flavors of baked peaches, vanilla and hints of lemony citrus fruits. Occasionally, notes of grassy herbs are detected, but they never overshadow the presence of the Viognier. A dry, elegant wine consisting of 85 percent Sauvignon Blanc and 15 percent Viognier. 14.5 percent alcohol. About $20. www.ironhorsevineyards.com

110 IValueRich Magazine fall 2004

Alban Vineyards 2002 Edna Valley Estate Viognier

ALBAN VINEY/I.

www. va lu eri chonlin e.co m

R.H. Phill ips 2002 EXP Dunnigan Hills Viognier This Plymouth, California, winery locatKarl and Joh n Giguiere (along with

ed in the Sierra foothills is better known

John's wife, Lane) returned to the family sheep farm with the intent of getting back to the land. It did not take long for them to

for its red wines, particularly Zinfandel. Renwood 's Viognier, a well-crafted wine

realize that sheep farming was neither fun nor terribly profitable. After a brief search of suitable crops, t hey produced their first vintage of table wine in 1983. The winery was named after the brothers' maternal grandfather, who had farmed the same land. Within a few years, Karl Giguiere outfitt~d picker carts with portable generators and fluorescent lights and was among the first in California to harvest grapes at night while they were cool. Cool grapes maintain their fresh flavors and do not ferment en route to the winery. That

acter, is made from Lodi-grown grapes selected from three distinctive vineyards of varied soils and microclimates. Each lot is kept separate throughout the winemaking process and is fermented in stainless steel tanks to retain the freshness of the grapes. The final blend results in a delicious wine with perfect acid balance. This medium gold wine has aromas of mangoes with floral undertones followed by flavors of peach, blueberry and lemon

first night harvest saw the introduction of the non-vintage Rhone blend called"Night Harvest Cuvee Rouge:' The Dunnigan Hills AVA (American Viticultural Area) is 35 miles northwest of Sacramento. Possessing mo re fruit than varietal

that showcases the grape's varietal char-

meringue pie. A long buttery finish hints at vanilla and oak. Ample glycerines and thick body contribute to a rich mouthfeel. This well-balanced Viognier is versatile enough to accompany many foods and affordable enough to be an "everyday" wine. 13.5 percent alcohol. About S12.

www.renwood.com

character, the 2002 EXP Dunnigan Hills Viognier is a good introduction to the grape and its w ine. With grapes handpicked and harvested in the coolness of the night, the wine is rich with fragrant aromas and flavors of peaches, apricots and hints of tropical fruits mixed with vanilla and oak. Medium gold in color, this wine shows a good amount of acidity through to the finish with more tropical fruit character and less of the spicy qualities of the other wines reviewed. 14.5 percent alcohol. About S12.

Renwood Winery 2002 Viognier 'Select Series'

www.rhphillips.com

www. vrexpo.net

Fall 2004 ValueRich Magazine 1111

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n.Ciosing By Charles V. Payne

2004 presidential race, media focus on the economy beyond job creation headlines has been nonexistent. As a result, Democrats have been deriding paltry net

cept: Every American would pay the same rate of taxes on income - no special

job gains into the ground, but they might

sales taxes and the taxation of dividends

reach more Americans if they lobbied for their votes via their wallets. I'm talking about taxes. John Kerry and the Democrats want to raise taxes for people making over $200,000 a year, saying they should do their fair share. Their assertion is that these Americans, representing only the top 5 percent of the population, should pay 40 percent of the taxes. There's nothing fair about that share.

also would be eliminated. This simplified approach would greatly reduce the current labyrinthine collection system that is wasting a Mount Everestsized pile of federal money and would lead to increased consumer consumption

deductions, no loopholes and no accounting shenanigans. In some versions, capital

that would decrease the current national deficit and increase capital stock and productivity. The sales tax rate could be low-

and expanded savings. The earned income credit would be eliminated, however, and some families with incomes of $35,000 or less could find it difficult to make ends meet. The flat tax would also negatively impact charitable giving, and some worry that insufficient money would be generated to lift the

Many people making $200,000 a year live in communities such as New York or Los Angeles, where the cost of living is significantly above average. This niche has always been the hardest hit and, in reality, have the fewest tax breaks and loopholes. The worst part of this harebrained scheme is the idea that successful people

ered once the deficit evaporates. The job of collecting taxes would be shifted to retailers and eliminate Internal Revenue System waste, which has been estimated to be between 25 percent and 100 percent of funds collected. On the other hand, individuals in lower tax brackets would bear an additional bur-

provisions already have been suggested to aid families with household incomes of

should be treated as the enemy. This divi-

den as they purchase the basic necessities of life. And older Americans, who already have paid into the current tax system, would be taxed again as they spend their Social Security payments. Credits or extra funds for lower-income Americans and a special payment to older Americans to mitigate the double-taxation conundrum have been suggested

$35,000 or less. The federal budget deficit is climbing rapidly. The Congressional Budget Office calculated a budget surplus of $1.3 trillion in January 2003. By January of this year, they were calculating a budget deficit of $2.4 trillion. Finger-pointing aside, this is a serious problem that requires a nonpartisan answer.

to counteract the regressive aspects of a national sales t ax.

If anyone wants my vote, simplify taxes and don't divide our nation among the

sive plan goes against the heart and soul of America, where millions have braved the odds to reach for their dreams. Where is the outrage from Republicans? Thus far the Grand Old Party has been extremely quiet about taxes. President Bush has hinted that he would consider proposals to replace the federal income tax with a national sales tax, but is playing it very coy. What a missed opportunity! Tax reform would be of interest to all but the 5.5 percent of the population currently unemployed.

National Sales Tax Proponents of a national sales tax believe it would begin with a 17 percent tax on most merchandise. This would be added to existing city and state taxes. It is believed that this would trigger a greater rate of savings and create a domino effect 120 IValueRich Magazine Fal l 2004

Flat Tax While there are a lot of proponents of a national sales tax, I happen to think a flat income tax would be a better answer. The notion of making retailers the tax collectors of the nation could lead to unintended consequences. The flat tax concept rose to prominence in the 1980s and '90s based on books and articles published by Robert E. Hall and

nation out of its deficit position. Still, this is the most democratic tax system on the drawing board, and

rich, the poor and those caught in the middle. That is the American way- and a surefire way to capture the White House.

Charles V. Payne is the CEO and principal analyst of Wall Street Strategies, a leading independent stock market research company. He is a regular contributor to internationally televised networks and news organizations.

www. wstreet.com www. valuerichonline.com

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