In Focus

September 19, 2005

ASD Regulation has issued an important notice to investors who held accounts at one of the notorious "boiler room" brokerage firms, which victimized investors through (among other things) the "pump and dump" or "hype and dump" schemes. The notice is set forth below:

Former customers of Biltmore Securities, Inc. ("Biltmore") may be able to participate in a $3.5 million restitution fund (the Fund). The Fund was created by the United States District Court of the Eastern District of New York following the criminal prosecution of Biltmore principals. The Court has appointed NASD to administer and distribute the Fund under the guidance of the U.S. Attorney's Office of the Eastern District of New York.

Biltmore is a defunct brokerage firm that operated from 1992-1999. Based in Fort Lauderdale, the firm had additional offices throughout the United States.

Customer Eligibility

• Purchased in their Biltmore account one or more of the 9 securities listed below, including warrants, units or common stock during the IPO, or during the immediate aftermarket period of the IPO; and
• Suffered a net loss in trading those securities.

The securities and the applicable IPO dates are as follows:

• Select Media Communications, Inc. (SMTV) IPO Date: 8/18/94
• CSI Computer Specialists, Inc. (CSIS) IPO Date: 7/20/95
• TMCI Electronics, Inc. (TMEI) IPO Date: 3/6/96
• Hirel Holdings, Inc. (HIRL) IPO Date: 7/23/96
• CASCO International, Inc. (CASC) IPO Date: 9/16/97
• PC411, Inc. (PCFR) IPO Date: 5/21/97
• Terrace Holdings, Inc. a/k/a Terrace Food Group (THIS) IPO Date: 12/6/95
• Harmat Organization, Inc. a/k/a BARPOINT.com (BPNT) IPO Date: 9/10/96
• Hertz Holdings, Inc. a/k/a Return Assured, Inc. (RTRN) IPO Date: 11/13/96

NASD, acting as the administrative Trustee, will use a court-approved formula to calculate the amount of payment NASD recommends to the Court and the U.S. Attorney's Office to be awarded to each eligible Biltmore account holder. The Court has final approval over customer eligibility and all payments made under the Fund. Eligible customers will receive a payment (award) based upon the account records provided by the account holder and trading data obtained by NASD. Since the Fund does not have sufficient assets to compensate all eligible victims in full, awards (payments) will be based on (a) the approximate individual net losses in the nine securities, as calculated from account records provided by the victim and trading data obtained by NASD; (b) available funds for distribution at the date of the final distribution of the Fund; and (c) the number of eligible victims claiming participation in the Fund at the time of distribution.

If you have already received a claim package from NASD, you have been identified as a victim who may be eligible to participate in the Fund. You must complete the claim documents providing all requested information and return them to NASD in order to participate in the Fund.

If you do not return the completed claim package with your account records, you will not be eligible to participate in the Fund.

If you or the estate of a family member have not received the claim package from NASD, please send a request to NASD in writing that includes the following information:

• Name
• SSN or EIN
• Address
• Telephone numbers (day and evening)
• Note: please note if your Biltmore account(s) were in the name of a business, estate, trust, 401K or held in any other form and provide the corresponding EIN number.

Mail your Claim Package Request with the above information to:
Biltmore Restitution Fund
c/o Sandra M. Freney, Esq.
P.O. Box 65720
Washington D.C. 20035
Or send the information via email.

Restitution Awards

— James J. Eccleston
FinancialCounsel.com