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Unsecured Creditors <br />Apri122, 2004 <br />Page 2 <br />The Committee is greatly concerned about the proposed liquidating Plan to the <br />extent that it calls for what appears to be a very small consideration paid by the secured <br />lender in exchange not only for the assets of COMAT and Agile Stone Systems, Inc. but <br />also for the dismissal of the lender liability action. The Debtor has previously indicated <br />that this suit not only had a likelihood of success but could substantially yield a recovery <br />in excess of $10 million dollazs. Even more troubling is the prospect that one or more of <br />the former insiders of COMAT and Agile will receive repayments of their loans. It is the <br />Committees' belief that some of these loans may be or should be subordinated to the <br />interests of unsecured creditors. The exact terms of the settlement between the cured-- _ _ _ _ _ _ . _ _ . <br />-- en~and the former insiders of COMAT aze not entirely cleaz. <br />In addition to concerns and questions regazding the settlement with the secured <br />lender, the Committee does not believe that the Debtor has made sufficient efforts to sell <br />the assets of COMAT to disinterested third persons. Further, there is no liquidation <br />analysis in the Amended Disclosure Statement or Amended Plan of Reorganization to <br />determine what would or could be recovered through a liquidation of the assets. The <br />Debtor'has done a liquidation analysis and I have requested it, however, the Debtor has <br />not provided it to me. <br />The Committee will object to confirmation of the Plan of Reorganization and will <br />pursue efforts to obtain a maximum recovery for all unsecured creditors. If you have any <br />questions regazding this case or concerning the Amended Disclosure Statement or <br />Amended Plan of Reorganization, please contact me directly. <br />ALLlcllc <br />