Conclave Group is a direct marketing service company that has developed a proprietary distribution network designed to connect national retailers and service providers with the hard-to-reach apartment renter community. Conclave works by developing a consortium of landlords who provide Conclave access to renters via delivery of a magazine that contains everything a tenant needs to know and do in order to successfully complete his or her move (from change of address forms, to box orders, to new phone or cable service, to renter’s insurance). In 2003, Sonostar was the lead investor in the company’s initial capital raise. Greg Kiernan is a member of the board of directors.

DoubleAgent was a new interactive search engine and information organization portal that has patented search and session mapping technologies designed to significantly enhance user’s experience as they search for and store information on the internet. Sonostar provided the seed capital to Double Agent in March 1999. Although the company successfully completed two additional rounds of financing at valuations higher than our original investment, it was unable to continue raising capital and the company shut its doors in August 2001. Greg Kiernan was a member of the board of directors.

Garden State Brickface is the most experienced and service oriented residential and commercial remodeling company in the tri-state area. Ranked No. 30 in the top 500 remodeling companies in the country, Garden State was awarded the 2003 Contractor of the Year Award by the National Association of Remodeling Industry. Sonostar invested in Garden State in 1998 and has made follow-on investments as the company expanded into the sunroom and custom-made windows businesses. David Moore is chairman of the board of directors of Garden State Brickface.

Keryx is a biotech company which is in the process of initiating Phase II/III clinical trials for its lead drug compound, sulodexide, a drug that has shown exciting preliminary success in the treatment of kidney disease and vision disorder in diabetics. In August 2001, the FDA granted fast track status designation for further clinical development of the drug. Sonostar was the lead investor in the company’s second round of financing in December 1999. Keryx successfully completed its IPO in July 2000 raising a total of $46.3 million net of expenses. Keryx is currently traded on the NASDAQ under the ticker KERX.

Evaliant was an advertising monitoring service that provides real time advertising tracking on the internet. The company’s reports captured and categorized ads and analyzed data with respect to where and when ads appear, what the ads look like and what the audience size and media value is, at sites representing more that 90% of web ad spending. Sonostar was a founding investor in 1998. Though the company completed additional funding rounds at multiples of our original investment, the company, was sold to CMR in July 2002 at a discount to the value of our investment. Greg Kiernan was a member of the board of directors of Evaliant.

Through its exclusive relationship with NetJets, the premier fractional jet ownership program in the United States and Europe, Marquis offers a pre-paid annual lease of 25 hours or more of occupied flight time on aircraft ranging from the Citation V Ultra to the Gulfstream IV. There are no long term commitments, no monthly fees and no hourly usage charges. One comprehensive fee paid up front gives the Marquis Jet card holder access to the jet of his or her choice at any time on as little as 10 hours notice. Sonostar invested in the initial funding round of Marquis in December 2001. Through July of 2003, the company has sold more than 900 twenty-five hour cards, and has achieved profitability. Sales revenues for 2003, Marquis Jets' second full year of operation, will exceed $100 million, making Marquis one of the fastest companies ever to achieve that sales milestone. David Moore is vice chairman of the board of directors of Marquis.

Paradigm was a direct marketing company that markets subscription services to consumers for large brands, including AT&T, AT&T Wireless, Qwest, Protection-One, E-Trade, Progressive Insurance, Direct TV and others. In the spring of 1997, Sonostar and its principals provided the seed capital to Paradigm. In April of 1999, Western Resources, a Kansas based utility holding Company invested $32 million for a minority stake in the company. The Company was subsequently sold to Mosaic Group in Canada for a valuation in excess of $200 million. David Moore was chairman and Greg Kiernan was vice chairman of Paradigm. Greg Kiernan served as a member of the board of directors of Mosaic and was subsequently hired as a financial advisor to Mosaic.

Quadrangle is a private investment firm that invests in private and public media and communications companies in the United States and Europe through a $1 billion private equity fund. The principals of this fund are highly regarded professionals who are well known to Sonostar’s partners. Each of the principals has unmatched industry experience, knowledge and relationships. Sonostar has been an investor in the fund since its inception. We believe that our relationship with Quadrangle will provide us with strong financial returns as well as access to industry expertise and potential deal flow.

U.S. Home Systems is one of the largest home remodeling companies in the country, with branches in 15 major metropolitan areas in the United States. The company specializes in kitchen remodeling (operating under the Century 21 Home Improvements and Facelifters brand names), windows (operating under the Renewal by Anderson banner), bathrooms and outdoor decks. In addition, the company operates its own wholly owned consumer finance business through its subsidiary, FCC. In the spring of 1997, Sonostar and its principals provided the original financing for US Remodelers, the predecessor company, to purchase certain assets out of bankruptcy. In 2001, the company came public in a reverse merger. It is now traded on the NASDAQ under the ticker USHS and has a market capitalization of approximately $70 million, more than thirty times the original valuation of the company six years earlier. Until the time the company came public, David Moore was chairman of the board and Greg Kiernan was a member of the board of directors.

Wintegra is a "fabless" semi-conductor company that provides a family of single chip solutions that enables the next generation of access networks to converge voice and data infrastructures. Wintegra has more than sixty design wins with numerous customers. Texas Instruments is a major equity investor and customer. Sonostar participated in both the second and third financing rounds. To date the company has raised $39 million and is projecting profitability within the next twelve months. Our investment is largely a result of our strong professional and personal relationship with the largest investor shareholder.