BEACON EQUITY RESEARCH Analyst: Victor Sula, PhD

BEACON EQUITY RESEARCHAnalyst: Victor Sula, PhDInitial Report August 13th, 2008

SpongeTech® Delivery Systems Inc.43 West 33rd Street (between 5th-6th Avenue) Suite 600, New York, NY 10001

Tel: 877-776-6438Fax: 212-695-9342Investor Inquiries: Bill Young, [email protected] or [email protected]

Company IntroductionSpongeTech® Delivery Systems Inc. (OTCBB: SPNG) designs, produces, markets and distributes cleaning products for vehicular use. The Company has a patented tech-nology based on sponges that contain hydrophilic (liquid absorbing) foam polyure-thane matrices. SPNG’s sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with custom formulated soaps and waxes that are released when the sponge is applied to a surface.

At present, the Company’s product line focuses on vehicular cleaning uses. However, SPNG is applying its patented technology to the development of sponges for additional applications, including sponges with anti-bacterial, bath and kitchen soaps for house-hold uses, as well as a children’s bath foam sponge.

Market Data

Symbol Exchange Current Price Price Target RatingOutstanding Shares Market CapAverage 3M Volume

SPNGOTC BB

$0.04$0.19

Speculative Buy409.9M$16.4M

6,747,430

SPNG daily 08/12/08

volume

0.6

0.5

0.4

0.3

0.2

30

20

10

0

Mill

ions

Jun Jul Aug

Revenue, $ MnEPS, $

Gross marginNet Margin

P/E P/S

0.06 (0.020)

29.4%-1483%

n/m 297.58

5.50 0.005

84.7%18%

8.69 2.98

28.22 0.016

83.2%24%

2.50 0.58

28.22 0.016

83.2%24%

2.50 0.58

FY FY Market Data 28-Jul-08 2007E 2008E 2009E 2010E

Please carefully read the risks and disclaimer section at the end of this report.

Analyst: Victor Sula, PhDInitial Report August 13th, 2008

SpongeTech Delivery Systems, Inc. (OTC BB: SPNG) 2

During FY 2008, SPNG reported robust growth with revenues approaching $5.5 million. The sales gain is attributable to an ex-panded marketing campaign, including sales from the Web site. Going forward, the Company continues to experience strong demand in the United States and abroad, and is entering FY 2009 with order backlog in a $27 million range.

A business model capitalizing on innovative product offering

SPNG manufactures and distributes specially configured sponges containing an outer contact layer and an inner matrix, which is loaded with formulated soaps or soap and wax. When the sponge is applied to a surface with minimal pressure, the soap is applied to the surface. When the sponge is not in use, the hydrophilic matrix contains the soap and prevents leeching.

Product characteristics drive rapid adoption

SPNG’s technology offers significant cost savings to consumers since the wash and wax are built into the sponge; the consum-er doesn’t need to purchase these products separately. In addition, the Company’s sponges are biodegradable, gentle enough for all surfaces, yet tough enough to remove stubborn dirt. SPNG’s automotive/vehicle sponge was named one of the seven best new products at the Automotive Aftermarket Product Expo in Las Vegas this year.

Robust revenue growth evidences strong product demand

During FY 2008, SPNG reported robust sales growth with revenue ap-proaching $5.5 million, up from $0.06 million in FY 2007. An expanded marketing campaign, development of sales from the Web site and ex-tended distribution channels fueled FY 2008 sales growth. The Company continues to report strong interest from U.S. and international buyers and enters FY 2009 with confirmed order backlog in a $27 million range.

Product line extension broaden revenue potential

The Company’s primary product line has been designed for automotive/vehicle applications, including boats, airplanes, ATVs, jet skis and motor-cycles. SPNG also markets Uncle Norman’s™ Pet Sponge, designed for use with dogs, cats and other pets. Additional applications are in develop-ment. These include anti-bacterial, kitchen and bath cleaners and a unique foaming bath sponge for children.

Effective marketing campaign accelerates growth pace

During FY 2008, SPNG significantly expanded its sales and marketing, be-gan airing a TV commercial for its auto wash & wax system, and produced a new commercial for the Pet Sponge Care Kit. The commercials are ex-pected to run through February 2010 in all 50 U.S. states. SPNG’s

Investment Highlights


Company Business Strategy

Analyst: Victor Sula, PhDInitial ReportAugust 13th, 2008


commercials will air on LOGO, Inspiration, Hallmark Movie Channel, Discovery Science, NBATV, ESPN University, CBS Col-lege Sports, Sports New England, Sports Mid-Atlantic, Sports South, Fox Sports Pittsburgh, Fox Sports Southwest, and other cable and satellite TV channels.

The Company has also signed advertising agreements with several magazines and retailer catalogs, including Eastwood Co Automotive, JC Whitney, Mid-America Motorworks, Publisher’s Clearinghouse, Quadratec Essentials for Jeep, Speedgear, Doubleday Military Book Club, Handyman Club of America, Carol Wright, Heartland America, Overstock.com, Reiman Country Store, Seventh Avenue, Fingerhut and Cabela’s Catalog. This campaign complements SPNG’s ongoing radio and TV advertising on WFAN-AM Radio, SportsNet New York, BusinessTalkRadio and LifestyleTalkRadio.

Other promotional agreements include sponsorship by the New York Yankees and New York Mets and promotions on QVC’s “Keep It Clean” broadcast and on The Price is Right Game Show Prime Time Specials.

Large purchase orders from major U.S. and Latin America retailers

The Company is in discussions with several major retailers who are evaluating and test marketing its products. SPNG is also negotiating with a major supplier of brand name household cleaning products.

The Company has secured several orders, which together exceed $11 million, from well-known chain stores. SPNG received initial orders totaling $4.95 million from Winn Dixie, Ollie’s, and Price Chopper, as well as Wal-Mart Mexico and Wal-Mart South America. The second order from Wal-Mart South America totaled $2.25 million and is scheduled for December 2008 delivery. A third order totaled $4.16 million and will ship to South America in January 2009.

Background

SPNG designs, produces, markets and distributes cleaning products. The Company owns a patented technology based on sponges containing hydrophilic, which are liquid absorbing, foam polyurethane matrices. These products can be pre-loaded with detergents and waxes, which are absorbed in the core of the sponge, then gradually released during use.

SPNG also began marketing products based on hydrophilic sponge technology for bath, pet and home use in 2008. Other opportunities for broadening SPNG’s product lines and distribution channels are being explored.

The Company plans to operate through five business segments:

1) Car Care Products

2) Pet Care Products

3) Child Care Products

4) Home Care Products

Company Business Strategy




5) Pharma and Beauty Products

Its products are produced in the United States by independent subcontractors using SPNG’s patented technology and brand names. The Company believes these sub-contractors have adequate manufacturing capacity to meet anticipated future de-mand.

Products

The Company markets specially configured sponges containing an outer contact layer and an inner matrix. SPNG’s manufac-turer, H.H. Brown Shoe Technologies, loads the inner matrix of the sponge with custom formulated soaps and, in the case of the automotive cleaning and polishing product, soap and wax. When the sponge is applied to a surface with minimal pres-sure, the soap and wax are released. When the sponge is not in use, the hydrophilic matrix holds the soap and wax in so that these products don’t leech.

Automotive/vehicle product line

The Company’s primary product line is designed for automotive/vehicle applications. It can be used to clean and polish boats, airplanes, ATVs, jet skis, motorcycles and other vehicles. SPNG’s patented Super Absorbent Polymer technology locks the car soap and wax into the sponge when it is formed. Sufficient cleanser is loaded for eight or more washes and waxes. The technology also holds the soap and wax safely inside the sponge until it is activated by a combination of water and squeezing pressure. As a result, the soap and wax doesn’t leech or dry up between uses.

With this technology, SPNG offers significant savings and convenience to consumers since the wash and wax are already built into the sponge. In addition, the Company’s sponge system is biodegradable, gentle enough for all surfaces, yet tough enough to remove most dirt.

SPNG’s automotive/vehicle sponge was named one of the seven best products at the recent Automotive Aftermarket Product Expo in Las Vegas.

Pets product line

The Company also markets Uncle Norman’s™ Pet Sponge for shampooing dogs, cats and other pets. Embedded in the Pet Sponge are 1) shampoo, 2) coat conditioner, 3) odor inhibitor and 4) massage bumps. These items are embedded using hydrophilic foam that inhibits bacterial growth and provides a thorough gen-tle cleaning. In addition, 42 embedded massage

bumps on the pet sponge’s surface increase the effectiveness of the bath and provide a massage effect that helps relax the pet.

This earth-friendly product eliminates the need to purchase sepa-rate bottles of shampoo, conditioner, and odor neutralizers. Each pet sponge is good for multiple applications. The shampoo and other ingredients are activated when the sponge is squeezed after being soaked in water.




Other applications

The Company is exploring additional applications for its technology including an anti-bacterial, kitchen and bath cleaner, and a unique foaming bath sponge for children.

SPNG has developed a children’s bath foam sponge (Puddle Pals), which features a “safe mesh” coating that prevents tearing. The sponge comes in various animal shapes and colors and is infused with a gentle no-tear, non-irritating anti-bacterial soap. The bath foam sponge does not leech soap when it is floating in the bathtub as the inner hydrophilic matrix retains the soap until the sponge is squeezed for use. SPNG may pursue retail distribution for this product through pharmacies and depart-ment stores.

The Company has also developed prototype household cleaning sponges infused with anti-bacterial bath and kitchen soaps. These products are being testing by a national detergent manufacturer for possible use under its logo and brand.

SPNG can use a wide variety of cleansers, including anti-bacterial and abrasive soaps, in its sponges. Products can be tailored to the cleaning needs of different kinds of vehicles. New vehicles or those being prepared for classic car shows, for example, require a gentle cleaner while older cars with faded paint may require a cleanser containing a compounding substance or gentle abrasive.

Sales and marketing

During FY 2008, SPNG’s quarterly sales rose from $64,000 in the first quarter to $1.3 million in the third quarter. Fourth-quarter sales are estimated to exceed $3.8 million. The strong sales gains reflect an expanded marketing campaign that included sales from the Web site.

4,5004,0003,5003,0002,5002,0001,5001,000 500

Q3 FY2007 Q4 FY2007 -

Q1 FY2008 Q2 FY2008 Q3 FY2008 Q4 FY2008E

Source: SEC Filings


Quarterly Revenue, $ thousands



In the past, the Company sold its products through a network of representatives including TurtleWax, Lidel Fitzmaurice, Bill Perry & Associates, Creative Marketing and others. During FY 2008, SPNG significantly expanded its sales and mar-keting effort and began airing TV commercials for the auto wash & wax system. The commercial is currently appearing on a variety of cable and satellite channels and is scheduled to run through February 2010. While SPNG’s advertising began on a modest scale, it has since expanded to all 50 U.S. states. The Company’s commercials will air on LOGO, Inspiration, Hallmark Movie Channel, Discovery Science, NBATV, ESPN University, CBS College Sports, Sports New England, Sports Mid-Atlantic, Sports South, Fox Sports Pittsburgh, Fox Sports Southwest and other cable and satellite channels.

SPNG is also producing a new commercial for the Pet Sponge Care Kit. When completed, the commercial will air on a variety of cable and satellite channels through June 2010.

During 2008, SPNG entered into numerous arrangements, which help to promote its product offerings:

• The Company has committed to donating a percentage of sales from its children’s bath sponge to The Darryl Strawberry Foundation, an organization dedicated to raising global awareness of autism and other developmental disorders.

• SPNG signed an agreement with the New York Yankees, giving it the right to display advertising in Yankee Stadium and make certain other commercial arrangements for the 2008 baseball season. The Company held a promotional day at Yankee Stadium on July 28 and distributed key chains to the first 18,000 fans. Before the game, SPNG’s products were advertised through radio and television spots. In addition, the Company’s name was spotlighted in the ten games played prior to the promotional day. The term of the agreement extend through November 1, 2008.

• In March, SPNG entered into a one-year consulting agreement with Straw Marketing and Darryl Strawberry. Per the terms of the agreement, Darryl Strawberry will make promotional appearances for the Company, coordinate promotional appear-ances with the New York Yankees and New York Mets, and introduce the Company to promotional opportunities with Major League Baseball

• In April, SPNG’s auto care products, including “Smart Sponge,” with wash and wax imbedded inside, and the Detail Sponge and Chamois, were featured on QVC’s “Keep It Clean” broadcast.




• Also in April, the Company signed an agreement with the New York Mets for certain advertising rights during the 2008 baseball season. Per the terms of the agreement, SPNG has the right to post signage in left and right fields during three full innings of each game. The Company had a promotional day on May 13 and distributed T-shirts to the first 12,000 children in attendance.

• SPNG was featured on The Price is Right Game Show during May TV Sweeps. The feature included two product place-ments on games. Airdates are tentatively scheduled for April 30 or May 7, May 14 or May 21.

• In May, SPNG began offering coupon inserts for its auto wash & wax system. The Company will be advertising in a variety of magazines and catalogs, including Eastwood Co Automotive, JC Whitney, Mid-America Motorworks, Publisher’s Clear-inghouse, Quadratec Essentials for Jeep, Speedgear, Doubleday Military Book Club, Handyman Club of America, Carol Wright, Heartland America, Overstock.com, Reiman Country Store, Seventh Avenue, Fingerhut, and Cabela’s Catalog. This campaign will complement SpongeTech® ‘s ongoing radio and TV advertising on WFAN-AM Radio, SportsNet New York, BusinessTalkRadio and LifestyleTalkRadio.

In addition, the Company has updated its corporate Web site to include product information, an updated online ordering sec-tion for placing product orders and a new investor relations section with recent Company news, stock quotes and IR contact information.

SPNG is also promoting its products at trade shows. During 2008, SPNG attended or plans to attend the Los Angeles Auto Show, the North American International Auto Show, the South Carolina International Auto Show, the West Virginia Auto Show, the Pennsylvania Auto and Boat Show, the Northeast Auto Show, the Motor Trend International Auto Show, the Chi-cago Auto Show, the Virginia International Auto Show, the New York International Auto Show, the Tampa Bay International Auto Show, the Charlotte International Auto Show and the National Hardware Show.




Industry Outlook

According to Freedonia Group, U.S. demand for industrial and institutional cleaning chemicals is projected to increase 3.8% annually to $10 billion by 2010. Increased spending reflects the growing popularity of multifunctional cleaning chemicals offering sanitizing and other benefits, as well as reduced labor costs for janitorial and other cleaning operations.

Commercial applications lead the industrial and institutional cleaning chemical segment, accounting for about 65% of over-all demand. While it will remain the largest segment, the commercial segment is expected to report growth slightly below the market average. The same is true for the manufacturing segment. The smaller institutional segment is poised for stronger growth mainly due to growing demand from the health care sector.

12

10 9.28.9

8

6

4

2

2000 2005 2006 2007 2008 2009 2010

8.68.3

9.6 10.0

Source: http://www.allbusiness.com/marketing/market-research/3948060-1.html

Demand for industrial and institutional cleaning chemicals, $ billions

I&I Cleaning Chemical DemandCommercial:FoodserviceOtherManufacturingInstitutional & Government

7.1 4.7 1.7 3.0 1.6 0.8

8.3 5.4 2.0 3.4 1.8 1.1

10.0 6.4 2.5

3.9 2.1 1.4

100%66.2%23.7%42.5%22.3%11.5%

100%65.4%24.5%40.9%21.5%13.1%

100%64.4%25.1%39.3%21.1%14.5%

2000 2005 2010 2000 2005 2010

Industrial and institutional cleaning industry segments, $ billions

Source: http://www.allbusiness.com/marketing/market-research/3948060-1.html




Industry Outlook Foodservice is the largest commercial market, and food and beverage processing is by far the largest manufacturing market. Food-related operations are fairly intensive users of cleaning chemicals due to the need to ensure customer safety and com-ply with numerous regulatory requirements. Unlike many other markets, however, foodservice cleanser choices are limited. Foodservice and food processing customers can’t simply use the most effective product since their cleansers must also be safe for workers and consumers.

Freedonia Group anticipates that disinfectants and sanitizers will record the fastest growth among industrial and institutional cleaning chemicals through 2010. Gains will be driven by heightened safety and health concerns regarding the spread of infectious diseases and risks associated with food-borne pathogens and other contaminants.

Given Freedonia Group forecasts, we believe SPNG is addressing a huge, growing market. Considering the strong demand for cleaning solutions, we expect SPNG to garner a meaningful share of this growing segment of the cleaning market over the next three to five years.

In FY 2008, the Company reported significant revenue growth with sales approaching $1.3 million in the third quarter and estimated to reach $3.8 million in the fourth quarter. SPNG also recorded a $0.9 million increase in operating expenses dur-ing the third quarter due to higher general and administrative expenses and advertising expenses totaling $0.7 million. Gross margins were 86.4% and SPNG turned profitable in the third quarter, reporting net income of approximately $0.2 million.

Financial Review


SalesCost of goods sold

Gross profitGeneral and Administrative expensesDepreciation and amortization expense

Net income Diluted EPS

Gross marginNet margin

64,076 13,566 50,510 56,786 3,985 (10,261) (0.000)

78.8%-16.0%

278,976 35,110 243,866 230,862 4,336 8,668 0.000

87.4%3.1%

1,281,704 174,022 1,107,682 914,864 4,336 188,482 0.002

86.4%14.7%

Q1 FY 2008 Q2 FY 2008 Q3 FY2008

Income statement, $

Source: SEC Filings, FY ending May 31.




At the end of February 2008, SPNG had cash and equivalents of $19,774 and a working capital surplus of $1.8 million. SPNG’s management anticipates that the Company will need to raise at least $100,000 in external funding to implement its FY 2009 business plan.

From January through June 2008, the Company issued an aggregate of 267 million shares of common stock to RM Enter-prises International Inc., a company that is controlled by SPNG’s officers and directors. SPNG received proceeds of $4.9 million from this issuance. The average per share price was $0.0184.

As a result of the forgoing transactions, the Company now has approximately 400 million shares of common stock and 10 million shares of Class B stock issued and outstanding.

The Company is negotiating with major retailers who are evaluating its products. SPNG is also involved in discussions with a major supplier of brand name household cleaning products regarding the use of its patented technology to produce various household cleaning products under the supplier’s well-known brand name.

SPNG has also announced multi-million dollar orders from well-known chain stores. The Company received nearly $5.0 million in initial orders from Winn Dixie, Ollie’s, Price Chopper, Wal-Mart Mexico and Wal-Mart South America. The second order from Wal-Mart South America totaled $2.25 million and is scheduled for Christmas delivery. A third order for $4.2 million will ship to South America in January 2009.

Cash and equivalentsCurrent AssetsProperty and equipmentIntangible assetsTotal assets

Current liabilitiesEquity, includingAccumulated deficit

387 387

19,979 90,000

110,366

268,885 (158,519)

(3,652,718)

21,064 779,773 17,486 297,443

1,094,702

273,280 821,422

(3,654,311)

19,774 2,131,880

14,993 305,443

2,452,816

289,947 2,162,869

(3,455,568)

31-May-07 30-Nov-07 29-Feb-08

Balance sheet, $

Source: SEC Filings

Outlook and Valuation



Outlook and Valuation

SPNG expects to report fourth-quarter revenues approaching $3.9 million and enters FY 2009 with confirmed order backlog exceeding $27 million.

We estimate revenues will reach $5.5 million in FY 2008 and $28.2 million in FY 2009. Going forward, we expect SPNG to maintain 30% average annual longer-term growth as it introduces new products through major U.S. retailers and rapid penetrates key international markets.

The Company turned profitable in the third quarter of FY 2008 and reported better balance sheet and cash positions. As a result, we don’t anticipate the need for significant external financing, which would result in share dilution.

Comparative analysis

For valuation purposes, we compared SPNG to manufacturers and distributors of soaps, detergents, waxes, sponges, cloths and other automotive, household and bath products. The peer companies are trading at 17 times forward Price/Earnings multiples and 1.4 times forward Price/Sales multiples. We think SPNG should trade at the lower end of the peer group P/E range due to the greater risk associated with its smaller size and earlier development stage.

SalesCost of goods soldGross profitGeneral and Administrative expensesDepreciation and amortization expenseTotal operating expenses

Net incomeDiluted EPS

5,499,753 841,821 4,657,931 3,658,436 17,157 3,675,593

982,339 0.005

28,219,867 4,736,884 23,482,983 16,629,925 18,363 16,648,288

6,834,695 0.016

37,908,783 6,692,134 31,216,649 20,601,624 18,958 20,620,582

10,596,067 0.023

FY2008E FY 2009E FY 2010E

EPS forecast, $

Source: Analyst estimates




Ecolab Inc. Clorox Co. Church & Dwight Co. Inc.

Stepan Co.Procter and GambleUnilever plcMedian

SpongeTech® Delivery Systems

ECLCLXCHDSCLPGUL

SPNG

44.7954.5154.9557.3964.8027.90

0.04

1107075103,650 542 197,837,53

14.96

23.8216.8819.5625.1718.5112.9819.03

7.93

20.8314.6517.2321.9016.8312.1317.03

2.28

1.791.431.51n/a2.400.621.51

2.72

1.671.341.42n/a2.240.601.42

0.53

Company Name Ticker Share Mrkt. Cap P/E P/S 28-Jul-08 symbol Price, $ $ Mn 2008 2009 2008 2009

Peer group comparison

Source: Yahoo Finance, Analyst estimates

Applying our 2009 EPS forecast of $0.016 to the Unilever Pls forward P/E multiple of 12.13x, we derive a $0.19 target price for SPNG’s shares. We are initiating coverage of Spongetech Delivery Systems Inc. with a Speculative Buy rating and a $0.19 price target. However, we strongly advise investors to consider the risk factors cited below before investing.

Inherent business risks

SPNG is pursuing an aggressive growth strategy in the cleaning chemicals market. While the Company has pro-vided optimistic sales forecasts, there is no assurance that it will be able to maintain this growth pace or success-fully introduce new products. Opportunities will be limited if its expansion is not made on economically favorable terms.

Intense competition

SPNG competes with many cleaning product companies, which have greater financial resources, brand visibility and distribution channels. The Company’s strong product offerings may make it an attractive acquisition candi-date.

Investment Risks


Management



Investment Risks

Dilution to existing shareholders

From January of 2008 through June 2008, the Company issued an aggregate of 267 million shares of common stock to RM Enterprises International Inc., a company controlled by SPNG’s officers and directors. In addition, SPNG issued shares to officers. These transactions have increased the fully diluted share count to nearly 400 million common shares and 10 million Class B shares.

RM Enterprises International has given SPNG the right, at any time on or prior to February 28, 2010, to repurchase all or any portion of the 267 million shares that RM Enterprises International owns at the original price. However, there is no as-surance that this right will be exercised.

Management

Michael Metter has served as president of RM Enterprises International, SPNG’s majority stockholder, since April 2001 and as its CEO since March 2, 2004. He has also been a director of Western Power and Equipment Corp. since February 2003. Mr. Metter has served as president and CEO of Busi-nessTalkRadio.net, a syndicated radio network based in Greenwich, Conn. Since June 2003, he has been chairman of the board of Tiburon Capital Group and DL Investments Inc., both of which are privately held investment companies. Since May 2000 he has served as vice president of ERC Corp., a privately held marketing consultant. He served as compliance director for Security Capital Trading Inc., a securities broker-dealer, from October 1998 to February 2001. Mr Metter was also a principal at Madison Capital from September 1997 to October 1998. On April 19, 2001, Mr. Metter filed a peti-tion in personal bankruptcy in the District of Connecticut, Bridgeport Divi-sion, and was discharged on December 14, 2001. Mr. Metter received an MBA in finance and a Bachelor of Arts in marketing and accounting from Adelphi University.

Steven Moskowitz has served as a director of RM Enterprises Interna-tional Inc. since April 2001 and as its secretary since March 2, 2004. He has been a director of Western Power and Equipment Corp. since February 11, 2003. He also served as a director of Tiburon Capital Group, a privately held investment corporation, and vice president of ERC Corp., a privately held marketing consultant. He served as vice president, marketing and business development for H. W. Carter & Sons, a distributor of children’s clothing, from 1987 to 2002. He was president of the H. W. Carter & Sons division of Evolutions Inc. from 1996 to 1997. Mr. Moskowitz served in various capacities at Smart

Michael MetterPresident, CEO and Director


Steven MoskowitzChief Financial Officer, Treasurer and Director



Style Industries, a manufacturer and distributor of children’s apparel, from 1986 to 1987, eventually reaching the position of vice president of sales and marketing. Mr. Moskowitz has also served as a director of publicly traded National Stem Cell Inc. since January 2007. He holds a Bachelor of Science degree in management from Touro College.

Mr. Lazauskas is the founder and president of FJL Enterprises Inc. and TNJ Enterprises Inc. These businesses, formed in 1999 and 1997, re-spectively, own and operate eight Dominos Pizza Stores. He became a director of RM Enterprises International Inc. in March 2004. He holds a Bachelor of Arts degree in mathematics from Central Connecticut State University.

Frank LazauskasConsultant and Director




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We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.



All decisions are made solely by the analyst and independent of outside parties or influence.

I, Victor Sula, Ph.D, the author of this report, certify that the material and views presented herein represent my personal opinion regard-ing the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compen-sation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Victor Sula, Ph.D. - Senior Analyst

Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant positions within the World Bank sponsored Agency for Restructuring and Enterprise Assis-tance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D. degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.

Documents

BEACON EQUITY RESEARCH Analyst: Victor Sula, PhD