Subject: ATS Warrants
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Mon, 15 Oct 2001 14:08:44 -0700 (PDT)

Louise,

I do not think it is possible to begin selling the ATS Warrants at this time.

Per the ATS Warrant Certificate, the ATS Common Shares issuable on exercise of the Warrants may not be sold, transferred or otherwise traded until March 20,2002.  The Warrants are also non-transferable except to an affiliate. 

In addition, the ATS Warrants are valued daily using a Black-Scholes model.  The spreadsheet with the result of the evaluation is attached.  The current value of the Warrants is $762,600 USD using the evaluation model.  However, the current ATS stock price on the Canadian Venture Exchange is $0.97C with an Warrant exercise price of $0.85C for the first 2,000,000 share tranche. The second 1,000,000 share tranche has an exercise price of $1.10C.  Thus, the current value is considerably less than the Black-Scholes evaluation model is calculating.  

If you have any questions please give me a call at extension 33541.

Kevin Miller