Reader Interaction - 14 Sep 2006

Fearful Questions on Déjà Vu, all over again?




14 September 2006
EB Reader & PK Correspondence


PK,

I have talked with four other ITKG investors. They are concerned that we are re-living the past when announcements were made with agreements but no revenue producing contracts coming to fruition. One of these individuals is a substantial investor who asked a question that is hard to answer. The question was this:

"In researching Press Releases in early 2000, ITKG came out with some pretty strong announcements that they had a couple of cell phone manufacturers in the initial phases of utilizing the "PlasTenna" product. What is to say that we are re-living the past with nothing substantial and more dilution on the way?"

I did not no how to respond. The question is: how much longer can I get these guys to hang on before dumping?

I am telling them to sit tight. I can only hope and pray that this announcement is the beginning of several more announcements coming within the next two weeks. Keep in mind, Bill Robinson (BR) and Tom Aisenbrey sat in front of 20 or so shareholders in Jasper Indiana commenting on 7 licenses before the end of the year. I have to believe that Bill is not that dumb to be making those types of comments without being pretty darn sure that something will happen.

It is so hard to try to get these guys to understand that the past is different from the present. I can only hope that I am leading them down the correct path.



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EB Reader,

I have an answer to that question, but it is late and I hope you do not mind if I take it on tomorrow so it will have a ring of sense to it.

In the meantime, realize this simple fact. With the manufacturer announced, this puts Integral on a totally new level than it has ever experienced in the past.

Answer this question: How close is the Jasper Rubber/Integral relationship? Once you do that, you will sense where my thoughts already reside. By the way, you are spot on, this is a different time--but that would mean that one would have to believe that a company is aware of its past and is willing to learn from that.

As for your friends or anyone else -- if anyone has a desire to sell, then you have to let them. It is their money, and at the end of the day, their responsibility as to how they trade their shares. I know it might sound heartless, and that we wish others could share in our good fortunes, but try as we might, we cannot enlighten everyone. Different people have varying thresholds of understanding. For some the act of investing is, simply put, divining reason and reality from the uncertain fear of the almost or unknown.

If these individuals you speak of sell at a profit, then be happy for them. You and I know that this has the potential of being larger, but for some, the stress of market risk is too much - let them go with their peace of mind intact. And trust in the fact, the company will not sink due to their absence. Once the first sale is made, and material validation is...well...verified, know that the shares sold due to personal uncertainty will be bought on the cheap by someone who "gets it." That's someone who actually understands what the capabilities and product market potential are at hand.

Cheers and best regards from the Heart of Bavaria,

PK sends...



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EB Reader,

Here is the historical skinny on the 2000 announcement, and the later announcement with MOT.

First -- Integral attempted a couple of different tact’s at getting into the market at little cost, and without going the route of buying into an expensive manufacturing element.

Initially, they tried mentoring under GE. They even hired one of GE's former top pitchmen, an individual named RAVI.

This relationship was cast asunder due to the back-deal work conducted by both GE and Ravi with Integral left almost unawares. BR caught onto the game and cut the relationship immediately, and fired Ravi to boot.

They then worked with DuPont -- a tragedy I had mentioned in the past.

Well, during this time frame, they were lead to believe the skies were the limit.

They have sided with the market giants, and with their clout supporting them, they were allowed to dream -- the PR's of the time reflected the optimism surrounding the moment. That and the fact that other companies Integral was introduced to, impressed by the association with GE, and later DuPont -- and more importantly by the solid supply-chain support these companies were able to guarantee -- these companies gave ear to what Integral had to say and upon seeing the material at work, became believers.

As you will note, and as I hinted in my email yesterday, the supply-chain is the ultimate key surrounding both the success of Integral, and their successful introduction to the marketplace.

No company will do business with another if assurances cannot be given on product or material availability.

Because Integral never owned a manufacturing plant, they could not offer that assurance -- which is why they attempted to mentor under, work along side of, and finally license rights to larger companies who literally control markets, or manufactures.

This is where the difference rests. Integral has found what they consider a TRUSTED AGENT in JARCO. Now Integral can share the unique characteristics of ElectriPlast with a trusted outside source, which will have a shared investment in Integrals interests and material needs & requirements.

Second, they tried dealing directly with companies. This gave them freedom to allow the company to contact and negotiate deals directly with a recommended manufacture that had access to the secrets behind ElectriPlast IP materials. This is where the deal with MOT began and died.

Simply put, BR dealt with one MOT management team who presided over the failed Sat Phone (Iridium) venture. Hundreds upon hundreds of millions were lost outright on that prospect, and the loss nearly broke MOT. There was also the case that Integral had yet to find a manufacture that it felt comfortable in sharing its IP secrets to -- but that is a later matter to consider. Suffice it for now to know that MOT was one of Integral's first-steps to engage larger companies directly. With each in the end, the supply-chain guarantee ended up limiting the marketing ability, and curtailed the promises of material delivery required before a contract could be signed...

But, let’s go back to the MOT saga. A new, more conservative management took over on the MOT board. Unfortunately, Integral's contact, and former work-through Program Manager left with the earlier board. Integral Letter of Intent to conduct business was passed on to the new strategic Sponsors within the MOT organization, and left to wilt and die. Integral still engages with MOT, but not at the level they once did. Whether they are still test bedding the ElectriPlast material is unknown--at least to me--at this time.

That's it for the history and on why the times now are so drastically different.

Now BR can make promises. Now, with the power and resources of a manufacturer/compounder behind him, he can tell company x, y, or z just how much raw material he can arrange for them to get, and when.

Before, he could not...

PS -- would you mind if I use portions of this and the earlier email in an upcoming Blog submission? The words offered might be helpful to other shareholders echoing similar sentiments...

Please let me know.

Cheers and best regards from the Heart of Bavaria,

PK sends...