John Martin 7-20-05 Update...

[dianexgetisis]

FRIZZELL LAW FIRM
305 S. Broadway, Suite 302
Tyler, Texas 75702
[phone]
E-Mail [e-mail]

Dear Group Members, July 20, 2005



My apologies for this delay between updates. I had a rather urgent matter to come up in Houston that caused me to be out of the office part of Monday and all of Tuesday. (I have not yet gone to Canada or Equador) John has given me an extended list of matters that he would like me to comment on in an update. I cannot address all of them at this time. I will give you an update before I leave the office on Friday that should provide information on most of the pending concerns he has brought to my attention. I will give further explanation about Phase 2 in that update.

I am continuing to get assurances from Don Stoecklein that Brad Beckstead is making progress on the audits. Is there a shareholder among you that has audit experience that would agree to act as a monitor on a bi weekly basis? I am going to ask that our monitor be allowed to communicate directly with Mr. Beckstead so we can have some assurance that there is in fact progress on our financials. I am very much aware of prior audit work that Mr. Beckstead has done for some related entities. It would be prudent for us to follow the firm’s progress at this point.

I have no news to report on the status of our settlement proposal. The SEC attorneys have initiated the steps for submitting our proposal to the commission. There is no set time frame for a response. I have not received word that the Commission has actually received our proposal, but it is my understanding that the SEC attorneys have begun the submission process. I will report to you any discussions about settlement between the company and the SEC as soon as I hear of the same.

The Petition For Review (the name of the appeal documents) preparation has begun. I have offered I disagreeistance in the preparation of the Petition but I have been assured that this document is being prepared. I have asked to review any rough drafts and I expect I will receive the same when the Petition is nearing its final form.

Thanks to some really good due diligence by some of your own members we have amassed quite a book on some people involved in this company aside from Urban Casavant. There have clearly been trading irregularities in the last two years. In my opinion there has been clear market manipulation of this stock. This manipulation was also brought on in part by some of the individuals that received large amounts of this stock in the last two years. I cannot reveal the names at this point for rather obvious reasons. I am still in need of certain information before I can suggest any appropriate action at this time. The investigation into these individuals have consumed an inordinate amount of time but this work is very important. Much more to come on Friday afternoon.





Onward,





Bill

[fastwalker]

I'm just a tad bit concerned with these statements...

"I am continuing to get assurances from Don Stoecklein that Brad Beckstead is making progress on the audits. Is there a shareholder among you that has audit experience that would agree to act as a monitor on a bi weekly basis?

I am going to ask that our monitor be allowed to communicate directly with Mr. Beckstead so we can have some assurance that there is in fact progress on our financial.

I'm really not overly pleased with this contention....

" I am very much aware of prior audit work that Mr. Beckstead has done for some related entities. It would be prudent for us to follow the firm’s progress at this point."


I assumed this action was a moot point, or an exercise in futility?

"I have no news to report on the status of our settlement proposal. The SEC attorneys have initiated the steps for submitting our proposal to the commission.

There is no set time frame for a response. I have not received word that the Commission has actually received our proposal, but it is my understanding that the SEC attorneys have begun the submission process. I will report to you any discussions about settlement between the company and the SEC as soon as I hear of the same. "


The following statement regarding the petition...Just started.......thats is disconcerting!!!!

"The Petition For Review (the name of the appeal documents) preparation has begun. I have offered me arseistance in the preparation of the Petition but I have been assured that this document is being prepared. I have asked to review any rough drafts and I expect I will receive the same when the Petition is nearing its final form.


I really don't want to beat a dead horse here...but we have all addressed this issue and have yet to see anything productive being done to resolve, or identify for legal processing, the manipulators....!

Thanks to some really good due diligence by some of your own members we have amassed quite a book on some people involved in this company aside from Urban Casavant.

There have clearly been trading irregularities in the last two years. In my opinion there has been clear market manipulation of this stock.

This manipulation was also brought on in part by some of the individuals that received large amounts of this stock in the last two years. I cannot reveal the names at this point for rather obvious reasons.

I find this statement very encouraging that he is attempting another avenue to obtain the necessary verification...

I am still in need of certain information before I can suggest any appropriate action at this time. The investigation into these individuals have consumed an inordinate amount of time but this work is very important. Much more to come on Friday afternoon.

Overall, it appears that money spent to retain the attorney was well spent. Further that he is attempting to "verify and discover" data essential to proving the legitimacy of our allegation regarding the NSS.

fw