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EDSR INFORMATION 12-08-1997 Minge bill puts subsidy debate on national ag... INFORMATION Page 1 of 6 Poet ,wast,for • 111010411it � . a few beim tor 7 flint IN ex- 3 11111=12111110E11 vb- presidents user! '11 55 * Published Wednesday,December 3, 1997 Minge bill puts subsidy debate on national startriene.com agenda Beiness Mike Meyers/ Star Tribune Early last year,the Connecticut parent company of Value RX-- a firm that manages prescription drug benefits for HMOs and self-insured employers --was planning to consolidate its operations in one of four states --Minnesota, Michigan,New Mexico or Arizona. Minnesota was chosen after the state and the city of Plymouth offered Value RX a$250,000 grant and $250,000 low-interest loan. In return,the company promised to grow within two years from a • payroll of 10 to more than 200 employees. Value RX quickly overshot the goal and now employs 700 people, from call center workers making $23,000 a year to clinical pharmacists and other medical specialists making $40,000 to about 20 executives making six-figure incomes. Many might call Value RX a success story. Instead of losing a handful of jobs to another state, Minnesota gained hundreds of well-paying jobs -- and stands to gain a tidy sum in personal and corporate income taxes. But grants, cheap loans and other forms of subsidies each year take billions of dollars out of state and local treasuries nationwide and have become controversial as the economic warfare between states has escalated with larger and more visible subsidies. A bill introduced in Congress by Rep. David Minge, D-Minn., seeks to end the economic wars by imposing an average 35 percent excise tax on such aid. The idea is to create a tax hefty enough to discourage companies from seeking subsidies. Or, as Minge said, "It's a tax we hope not to collect." Nationwide, an estimated 8,000 state and local agencies underwrite • business relocations and expansions with a basket of subsidies that can grow into the hundreds of millions of dollars for a sports http://websery l.startribune.com/cgi-bin/stOnLine/article?stories=10&pgraphs=l&orderBy=PUB 12/3/97,&next Minge bill puts subsidy debate on national ag... Page 2 of 6 franchise seeking a new stadium or an auto company picking the • location for a new plant. The biggest subsidy category in Minnesota is tax-increment financing,which came to $286 million last year. Sometimes the bids and counter bids are almost comical.New York spends about$500 million a year to keep existing businesses and attract new ones, often from neighboring states such as New Jersey and Connecticut. Meanwhile,New Jersey and Connecticut each spend about$300 million annually to lure industry away from each other and New York. A few years ago,the three states called a truce. But it didn't last. And taxpayers are paying the bill for a renewed competition. At last count, money available from state economic development agencies alone approached$1 billion, with untold billions more coming in the form of local grants, loans and property tax breaks. On Tuesday, a group ranging from a small-town banker to a U.S. Treasury economist, met at the Federal Reserve Bank of Minneapolis to discuss Minge's bill and its potential consequences face-to-face with him. Minge was told that weaning companies off of subsidies won't be easy, even among people who advocate stopping the practice. • "I've come to agree that this kind of activity needs to end," said Dennis Johnson, an executive at TMI System Design Corp. in Dickinson,N.D., and a director of the Minneapolis Fed. Hard to change game Nevertheless, until the rules change, Johnson said he's ready to play the game. Johnson plans to sign papers this week for a low-interest government loan being granted to his company. Jim Morris, vice president of the State Bank of New Prague, said his town lost 70 industrial jobs to a neighboring community after New Prague decided against providing low-interest loans to build a factory. Morris said his town's decision was right, despite the fact that it led to the loss of more than$1 million in local economic activity. "Taxpayers are neither competent nor motivated to be venture capitalists," Morris said. Venture capitalists take risks that fail as often as not but lead to returns of 50 percent or more on deals that succeed. Taxpayers, Morris said, are taking risks in subsidizing business without reaping the rewards private investors expect. • However, Rebecca Yanisch, executive director of the Minneapolis Community Development Agency, said Congress should be wary of http://websery l.startribune.com/cgi-bin/stOnLine/article?stories=l0&pgraphs=l&orderBy=PUB 12/3/97,&next Minge bill puts subsidy debate on national ag... Page 3 of 6 subjecting all public subsidies to a new tax. She said some subsidies, such as those aimed at fostering minority employment or use of public transportation, deserve exemptions. "What is the definition of a subsidy," she asked. "A lot of MCDA dollars are offsetting the cost of doing business in an urban environment." "Taxpayers are being held hostage by businesses offering to relocate if they receive special treatment from state and local governments, or worse,threatening to relocate unless they receive such sweet deals," Minge said in a statement when the bill was introduced. In an interview,he said he will seek public hearings on the proposal and attract House and Senate co-sponsors when Congress returns from recess early next year. The bill is not specifically designed to end the migration of professional sports teams, which are relatively minor-league players at capturing public subsidies compared with manufacturers, airlines and other service companies and the builders of malls and office towers. Excise tax proposed • But sports team moves involve the subsidies most in the public eye right now, and they would be affected by the bill. If it were law,the Minnesota Twins'prospective new owner could face a big excise tax penalty if he persuades North Carolina to build a baseball stadium. The same tax would apply if Minnesota legislators changed their minds and decided to underwrite the cost of a new stadium here. On a$400 million publicly built stadium, the team would owe the federal government about$140 million in excise tax if the Minge bill were law. "It sounds like the owner of the team would be paying a fairly hefty tax," said Dave St. Peter, spokesman for the Minnesota Twins. "I certainly think it would have a very negative impact on the ability of professional sports franchises to survive under current financial circumstances." The excise tax also would undermine efforts by the Minnesota Vikings and other sports teams to shop for subsidy deals in Minnesota and elsewhere. The same would be true for builders of office towers, factories, shopping centers, parking lots and other private projects receiving public subsidies offered to some, but not all, businesses. A new excise tax would "take the wheels off these teams," said Art Rolnick, director of research at the Minneapolis Fed and long-time http://webservl.startribune.com/cgi-bin/stOnLine/article?stories=10&pgraphs=l&orderBy=PUB l2/3/97.&next Minge bill puts subsidy debate on national ag... Page 4 of 6 critic of using public subsidies to influence location decisions of any • type of business. Sports teams and other businesses would "have to make their location decisions on economic fundamentals, not on incentives," Rolnick said. Reaction to the bill from Minge's congressional colleagues is mixed, with some applauding the goal but not necessarily the strategy of using a new excise tax to achieve a curb in subsidies. "I have thought for a long time that we should stop senseless smokestack chasing," said Rep. Gil Gutknecht, R-Minn. But Gutknecht, along with Rep. Bill Luther, D-Minn., and Rep. Bruce Vento, D-Minn., stopped short of supporting the Minge bill. Their reasons ranged from opposition to a new federal tax to concern about whether the federal government should interfere with states and cities as they try to recruit businesses. Rep. James Oberstar, D-Minn., said he opposed the whole idea of limiting subsidies, saying that would undermine the ability of rural areas -- like his and Minge's districts --to compete with urban centers for jobs. Support is slim Asked if he thought Minge's bill had a chance to become law, Oberstar said, "I think not. I hope not. I'll do all I can against it." Dean Peterson, a spokesman for Rep. Jim Ramstad, R-Minn., called the Minge bill "a non-starter," because of both the new tax and the federal role in state decision-making. The Minge bill exempts some forms of government subsidies to business from the proposed excise tax, including subsidies used for worker training and those that aid an entire industry rather than one company. The legislation would have no effect on continuing subsidies made on past deals, only on subsidy arrangements reached after the bill became law. Legislatures in 10 states, including Minnesota, have passed resolutions urging Congress to end targeted subsidies that cost state and local governments millions of dollars every year. Many economists argue that the money spent on subsidies is wasted and that state and local governments would keep and attract business more effectively by paying more attention to education,police • protection, environmental cleanups and other activities that benefit all employers. http://websery 1.startribune.com/cgi-bin/stOnLine/article?stories=l0&pgraphs=l&orderBy=PUB 12/3/97,&next Minge bill puts subsidy debate on national ag... Page 5 of 6 Two years ago, 100 economists in eight Midwestern states signed a resolution urging an assault on government subsidies aimed at 111/ influencing site location decisions by business. But any attempt to curb subsidies is likely to be controversial, as economic development officials argue that public subsidies are important tools for making their communities competitive in business creation and expansion, and subsidy recipients fight to keep their claim on public money. Jay Novak, Minnesota commissioner of trade and economic development, said the state would benefit if some forms of special subsidies were eliminated, if only because other states spend far more to lure industry. "The state, and this department, has never outbid another state in a competition to provide incentives,"Novak said. Medtronic Inc. arrived at a similar conclusion when the company chose to expand its neurological products division in Columbia Heights with the help of$500,000 in low-interest loans and indirect subsidies to prepare the building site. It brushed aside larger offers from other states. The company spent$7 million on the expansion and is ahead of schedule in expanding its payroll by 150 employees, said Medtronic spokesman Dick Reid. "We can't say it was absolutely necessary to keep us from leaving," Ektiness Reid said of the state subsidy. "We intended to stay there." Nevertheless,the subsidy could have made the difference between expanding now or waiting, Reid said. The proposal has sparked skepticism among some local government and business officials. "Many communities across the country need some tools so they can stimulate growth," said Minneapolis Mayor Sharon Sayles Belton. Tax increment financing and other subsidies can make costly urban sites more competitive with cheaper rural or suburban locations chasing the same companies making location decisions, she said. Pam Wheelock, St. Paul director of planning and economic development, agreed that diminishing the value of targeted subsidies would put cities at a strategic disadvantage. "It would severely limit our ability to attract employers, which is • absolutely critical for jobs for people who live in these cities," she said. http://websery l.startribune.com/cgi-bin/stOnLine/article?stories=10&pgraphs=l&orderBy=PUB 12/3/97.&next Minge bill puts subsidy debate on national ag... Page 6 of 6 However, Mel Burstein, general counsel at the Minneapolis Fed, said urban areas have advantages such as well-established road, sewer and • utility systems that rural and suburban rivals must spend millions to duplicate in order to build a factory, warehouse or office building. Without targeted subsidies, companies could find development more expensive outside than inside city limits, he said. "The irony is, any city like Minneapolis should applaud this deal," Burstein said. "The fact is,they're the winners now and it would be very hard to make them a loser." Inspiration for Minge's effort to end the bidding war between states and localities came, in part, from an analysis of the phenomenon by Rolnick and Burstein. They argued in a paper published two years ago that taxpayer money is being squandered in trying to influence site location decisions that should be made on the basis of economic return. List ©Copyright 1997 Star Tribune.All rights reserved. • http://webserv1.startribune.com/cgi-bin/stOnLine/article?stories=10&pgraphs=l&orderBy=PUB 12/3/97-&next INFORMATION SolarAttic, Inc.® 24 Hours/day (612)441-3440 Fax(612)441-7174 15548 95th Circle NE,Elk River,MN 55330 Internet:http://www.solarattic.com Email:SolarAttic@aol.com City of Elk River EDA December 1, 1997 13065 Orono Parkway Elk River MN 55330 Dear Paul Steinman: Holiday Greetings It has been very busy at SolarAttic since my last update! To bring you up-to-date and provide some context on our operations, I have enclosed the last eight press releases and some server statistics from our web site. This will be my last stockholder communication during 1997 unless something earth shattering takes place during December. It could happen! Otherwise, my next letter will be in January advising you of our upcoming stockholders' meeting. Annual Meeting You might want to mark your calendar now for the second Thursday in February (12th) at 6 p.m. The stockholders' meeting will be held in our new Elk River Business Center facility on Highway 10 in Elk River. This will be an exciting meeting. You won't want to miss it. More details will follow in my January letter. Internet Web Site I've attached two sheets from our Internet web site. The first page is a view of the basic request (hit) statistics from our site. On the backside, you'll find a copy of the first page of our Home page on the world wide web. Server Statistics As of 11/28/97 at 10:55 a.m., we had 19,842 requests at our site during November. We actually ended November with a total of 21,721 requests (hits). This is a big accomplishment for SolarAttic. The web site has almost completely taken over the job of disseminating information about the company. In the process, it has freed up our limited time resources for other tasks. Notice the growth over the course of the last year. The dip in the April-May time frame was the direct result of our move into the business center. You can observe a few other interesting statistics from this page. I.E. - We are currently transferring about 7 megabytes of information daily from the site. SOLAR Without PANELS . SolarAttic Receive Notice Of Allowance (July 29) We have not heard back from the patent office since our August reply. We still expect the patent will issue soon with all of the claims that we asked for. SolarAttic Selects Audit Firm For DPO (July 23) Leininger& Leininger, Ltd. of Plymouth is our audit firm. I'm happy to report that this is a very good firm to work with. Among other companies, they are the auditors of the First National Bank of Elk River. We expect to use their expertise for several years to come. SolarAttic Signs Distribution Agreement With P&P, Inc. (July 17) This sales effort was mentioned in my last update. We completed the agreement and shipped 6 systems to P&P. I understand that 5 of 6 systems are now installed. One system has some heat transfer problems as it was installed next to some air handling equipment and has no air intake capabilities. This particular installation is being modified. P&P appears to be active up and down Florida contacting potential retailers of our product. They are working principally to seek out larger pool dealers as "exclusive" resellers. New Ventilation Technology To Showcase At Energy House (June 17) The installation did take place. We also installed a video camera and lights so that the attic system can be viewed from inside the house. Contact Sarah Coppock at Energy Alley if you want to visit this new energy home in Elk River. Her number is 334-3388. Other Sales Info In terms of dollars, we are even with last year's sales and now expect to end the year up 1111 about 20%. However, our sales efforts have been setting the stage for 1998 sales via exclusive distribution agreements. Both Gainesville, FL and Phoenix, AZ are expected to move over 100 systems in 1998 to maintain exclusivity. In addition, we are close to finalizing exclusive agreements in San Diego, CA and Orlando, FL which would raise potential sales in 1998 another 200 systems. In all of these areas, we are talking about PCS1 pool heaters. This would project sales for 1998 to a minimum of$300-600K if the dealers being set up are as successful as we think they can be. Give me a call if you want to discuss any of these items further OR if you have any questions. It's my hope that Thanksgiving was a great time for you and your family. And, it is my prayer that God will bless you and your family with HIS peace during this Holiday Season. The only peace that surpasses all of our understanding! Sincerely yours, Edward . Palmer President s Stockholder Update: December 1, 1997: Page 3 of 3 • SolarAttic, Inc.® 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: Jun. 17, 1997 James Stanley (612)441-3440 Ed Palmer(612) 441-3440 New Ventilation Technology To Showcase At Energy House Elk River, Minn. (Jun. 17, 1997) -- SolarAttic, Inc. announced today that it has received notice that its new ventilation technology will be showcased in the upcoming Energy City (Elk River)energy house. A ground breaking ceremony was held yesterday in the Pheasant Run development area of Elk River where the new energy home will be constructed. Completion of the new energy home is scheduled to occur prior to September's Parade of Homes. The new "Energy Home" is the first joint project of the Suburban Northwest Builders Association of Elk River,Energy Alley of Minneapolis (a program of the Minnesota Environmental Initiative) and the City of Elk River(Energy Alley's designated Energy • City). It is expected that the new energy home will showcase several new technologies in the energy efficiency and renewable energy fields (EERE). Additional information on.Energy City the new energy home may be found at the company's web site located at httpll:www.solarattic.com. Ed Palmer, SolarAttic's president, said: "The company's new ventilation technology which is patent pending allows attics to be vented from the inside out thereby eliminating the need for roof vents. This is accomplished by using a specially designed duct or tube that is perforated such that air is drawn in uniformly all along its length. The new flexible duct is then positioned at the apex of the attic where attic air is collected. For the first time ever, absolute control over the attic cavity in terms of heat and moisture collection is made possible along with controlled attic ventilation. One anticipated outcome of the company's new ventilation technology is the elimination of winter ice dams; a major cause of roof damage. A second anticipated outcome is a significant reduction in air conditioning costs as attic heat loads are either controlled or eliminated. The company's product name is the `SolarAttic Ridge Ventilator.' The technology and product will also be showcased at the 1997 Minnesota State Fair (Home Improvement building) from August 21 through September 1." For further information, contact James Stanley or Ed Palmer at(612)441-3440. • SOLAR Without PANELS SolarAttic, Inc.® IP 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: July 17, 1997 James Stanley (612)441-3440 James Kantorowicz (612)441-3440 SolarAttic Signs Distribution Agreement With P&P, Inc. Elk River, Minn. (July 17, 1997) -- SolarAttic, Inc. announced today that it has completed an exclusive marketing agreement for the distribution of its PCS 1 Swimming Pool Heater with P&P Inc of Gainesville,Florida. P&P Inc operates in a multi-state area and will be establishing an independent dealer network for retail sales of the company's pool heater. All dealers will be purchasing product directly from P&P Inc which will be given exclusive sales territories to market the companies products. The first exclusive territory established is the Gainesville-Ocala area. The following Florida counties will now be serviced by Fun State Pools of Gainesville: Alachua, Bradford, Citrus, Gilchrist, Levy,Marion, Putnam and Union. All product inquiries in these Florida counties should now be • directed to Tillis Gibson of Fun State Pools at (352) 332-7665. SolarAttic has already received P&P Inc's initial order and expects to ship the first five pool heating systems sometime next week. In the company's agreement,P&P Inc is required to maintain a minimal annual sales volume in each exclusive territory established. Ed Palmer, SolarAttic's president, said: "This product distribution agreement is very significant. It is the first such agreement in what is expected to be many as the company now focuses on creating its product distribution system. SolarAttic has historically been a development company focused on creating its new solar energy technology. Now, however,the company is in transition to becoming a full scale manufacturing entity. An effective product distribution system is an important goal for the company." For further information, contact James Stanley or James Kantorowicz at (612)441-3440. #### • SOLAR Without PANELS SolarAttic, Inc. 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: July 23, 1997 James Stanley (612)441-3440 James Kantorowicz (612)441-3440 SolarAttic Selects Audit Firm For SCOR Direct Stock Offering Elk River,Minn. (July 23, 1997) -- SolarAttic, Inc. announced today that it has decided to proceed with a SCOR Direct Public Stock Offering(DPO) and has selected the CPA audit firm of Leininger& Leininger of Plymouth,Minnesota to audit the company's financial records. In addition,Leininger& Leininger will complete the company's GAAP audited financial statements for use with SCOR Form U7. The company plans to use its Internet web site at http://www.solarattic.com to market the SCOR offering direct to the public making it yet another EPO or"Electronic Public Offering." It is also called • a DPO or"Direct Public Offering." Both acronyms indicate that the common stock, once registered in individual states,will only be available for sale directly from SolarAttic on the Internet. Ed Palmer, SolarAttic's president, said: "The SCOR documents will be located on the company's Internet web site. Once the audits are completed and the SCOR documents are available on-line for preview,registrations in individual states will begin. Interest in a SolarAttic DPO has been expressed in a dozen states so far. California and New Jersey have been identified as the first two states that the company expects to register in. Registration in other states is likely." For further information, contact James Stanley or James Kantorowicz at(612)441-3440. *** This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. #### 4110 SOLAR Without PANELS SolarAttic, Inc.® • 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: July 29, 1997 James Stanley (612) 441-3440 James Kantorowicz (612) 441-3440 SolarAttic Receives Notice Of Allowance For 4th U. S. Patent Elk River,Minn. (July 29, 1997) -- SolarAttic, Inc. announced today that it received Notice of Allowance for a fourth U.S. patent. The company's new patent is another technology patent that discloses a ventilation (duct)technology which provides for the even collection or distribution of air all along its length. The new technology will find use in applications that distribute or collect air and is adaptable to virtually any building structure worldwide. Further technical details are available at the company's web site located at http://www.solarattic.com. The company's independent claim along with half of its dependent claims were accepted. The balance of the dependent claims will be reworded • and resubmitted. The company now anticipates that its fourth patent will issue by December 31, 1997. Ed Palmer, SolarAttic's president, said: "This upcoming fourth patent is very exciting to SolarAttic. It vastly expands the markets for SolarAttic's newly emerging technologies. Those markets are now estimated to be approximately $10 Billion in size worldwide. In addition to allowing for the efficient collection of hot attic air(solar heat energy),the company's new technology will vastly improve building comfort. It will do this by evening out the collection and distribution of air inside homes and office buildings, etc." For further information,contact James Stanley or James Kantorowicz at (612) 441-3440. #### • SOLAR Without PANELS SolarAttic, Inc.® 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: August 25, 1997 James Stanley (612)441-3440 James Kantorowicz (612)441-3440 New SolarAttic Ridge Ventilator Debuts At State Fair Elk River,Minn. (August 25, 1997) -- SolarAttic,Inc. announced today that its new ventilation product called the"SolarAttic Ridge Ventilator"has been released and is now debuting at the Minnesota State Fair Home Improvement Building through September 1st. The new product takes advantage of the company's recently patented duct technology that collects and distributes air evenly along its entire length. The Ridge Ventilator opens up a new era in attic ventilation technology. Ventilation of the attic has been an uncontrolled process which often did not work very well. The iformation of ice dams is one result of poor ventilation of the attic. SolarAttic's Ridge Ventilator will provide year around controlled automatic ventilation of the attic. Winter ventilation is activated by either a low temperature condition or a combination of low temperature and excess humidity. The company expects that its new product will eliminate the problem of ice dams in the winter. In the summer, excess attic heat is vented thereby reducing air conditioning costs. Unlike power roof vents that provide limited attic ventilation,the Ridge Ventilator provides a"systems solution"located inside the attic for totally controlling attic heat and moisture levels. It eliminates the need for any roof vents. Ed Palmer, SolarAttic's president, said: "The Ridge Ventilator is an exciting new product addition for SolarAttic. The company has been working on this new technology for several years and is very pleased to introduce this new product. The product takes full advantage of the company's proprietary and patented new duct technology. The Ridge Ventilator has been well received and will play an important role in the company's future revenues. Product information can be obtained on the Internet at http://www.solarattic.com." For further information,contact James Stanley or James Kantorowicz at (612) 441-3440. #### i SOLAR Without PANELS SolarAttic, Inc.® • 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: September 17, 1997 James Stanley (612)441-3440 James Kantorowicz (612)441-3440 SolarAttic Files PCT Application For International Patents Elk River,Minn. (September 17, 1997) -- SolarAttic, Inc. announced today that it has filed for international patent protection under the Patent Cooperation Treaty (PCT) for its new duct technology. The Company's PCT Application is being made through the United States Patent and Trademark Office(USPTO). SolarAttic expects priority treatment based on its U.S. application which recently received Notice of Allowance. The Company's new duct technology allows air to be collected or distributed evenly along its entire length. Ed Palmer, SolarAttic's president, said: "Our new duct technology has many product applications in • the$3.6 Billion `Blower&Fan' market and it will be a major source of revenue for the Company. The first product application is the SolarAttic Ridge Ventilator which was introduced to thousands of consumers at the Minnesota State Fair. The product received an enthusiastic welcome. The Ridge Ventilator provides year around controlled attic ventilation. The Company believes that this product is the first to provide control over attic ventilation in a way that eliminates the need for roof vents. The product's main benefits are: Eliminates Ice Dams;Reduces Air Conditioning Costs;Eliminates Roof Vents; and,Extends Roof Life. Technology and product information can be obtained on the Internet at http://www.solarattic.com." For further information,contact James Stanley or James Kantorowicz at (612) 441-3440. #### • SOLAR Without PANELS • SolarAttic, Inc.® 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: October 28, 1997 Jim Stanley (612) 441-3440 James Kantorowicz (612)441-3440 SolarAttic Announces Arizona Distributor Elk River,Minn. (October 28, 1997) -- SolarAttic, Inc. announced today that a new independent company has begun operations in Arizona to distribute and sell the Company's PCS1 swimming pool heater which uses solar-derived attic heat energy. SolarAttic's Pool Heater provides an answer to the number one solar objection which is panels. People do not like solar panels and many communities object and have restrictions. The PCS 1 is a heat exchanger which is located inside the attic and is out of site. It uses the roof as the solar heat collector. Based in Phoenix,the new distributor is called"Arizona SolarAttic Systems." The new company is not directly affiliated with,nor is it a subsidiary of SolarAttic. Arizona SolarAttic Systems has an Internet site at http://www.arizonasolaratticsys.com where additional product and sales information may be found. Further information in Arizona can be obtained by contacting Roger Magers,the owner of Arizona SolarAttic Systems, at(602) 493-1878. Ed Palmer, SolarAttic's president, said: "We're excited about this new distribution and sales operation that is taking off in Arizona. Phoenix,itself,is a very large market for swimming pool heaters and Arizona has current tax credits for renewable energy products like SolarAttic's. Roger has an excellent background in sales with years of experience. We expect him to do quite well with Arizona SolarAttic Systems." Additional information can be obtained on the Internet at http://www.solarattic.com or by contacting Jim Stanley or James Kantorowicz at(612)441-3440. #### • SOLAR Without PANELS SolarAttic, Inc.® • 15548 95th Circle NE,Elk River,MN 55330 24 Hours/day (612)441-3440 Fax(612)441-7174 Internet: SolarAttic@aol.com For Immediate Release: Contact: November 11, 1997 Jim Stanley (612)441-3440 James Kantorowicz (612)441-3440 SolarAttic Files Direct Public Stock Offering (DPO) in 14 States Elk River,Minn. (November 11, 1997) -- SolarAttic, Inc. announced today that it has filed a direct public offering (DPO)under the SCOR program in 14 states. SCOR is an acronym for small corporate offering registration. The Company is offering up to 200,000 shares of common stock at$5.00 per share for a maximum offering of$1,000,000. There is no minimum offering amount the company seeks to reach. There is, however, a minimum investment of$3,000 that is required. Proceeds will be used to expand the company's operations which are now focused on sales and manufacturing. Stock is only available directly from SolarAttic. All DPO registration documents, including the company's Prospectus,will be placed on the company's web site for downloading. Ed Palmer,the company's president, will be handling the stock offering for the company. The states filed in are: Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Kansas, Michigan, Iowa, Missouri, New Jersey, Rhode Island and Wisconsin.** The company has filed under a limited offering exemption in Arizona and Colorado which has no approvals and allows accredited investors only to invest after a 10 day waiting period. In California, the company has adopted super suitability requirements (similar to accredited investor requirements). Additional information can be obtained on the Internet at http://www.solarattic.com or by contacting Jim Stanley or James Kantorowicz at(612) 441-3440. ** This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State. #### SOLAR Without PANELS Server Statistics for www.solarattic.com 11/28/97 10:56 AM .. 4i01 4 4 :', ,. lib 0 '-'. al I k Server Statistics for www.solarattic.com Program started at Fri-28-Nov-1997 11:23 local time. Analysed requests from Tue-26-Nov-1996 11:25 to Fri-28-Nov-1997 11:22 (367.0 days). Total completed requests: 142 013 (5 054) Total failed requests: 109 497 (56) Total redirected requests: 119 852 (7 036) Average requests per day: 1 011 (1 735) Number of distinct hosts served: 7 730 (339) Number of new hosts served in last 7 days: 268 Corrupt logfile entries: 39 Total bytes transferred: 1 488 688 071 (48 912 539) Average bytes transferred per day: 4 056 386 (6 987 505) (Figures in parentheses refer to the last 7 days). 4)(Go To: Monthly report) Monthly Report (Go To: Top) Each + represents 500 requests, or part thereof. month: #reqs Nov 1996: 111: + Dec 1996: 3505: ++++++++ Jan 1997: 6978: ++++++++++++++ Feb 1997: 8045: +++++++++++++++++ Mar 1997: 7920: ++++++++++++++++ Apr 1997: 7236: +++++++++++++++ May 1997: 6480: +++++++++++++ Jun 1997: 13629: ++++++++++++++++++++++++++++ Jul 1997: 16024: +++++++++++++++++++++++++++++++++ Aug 1997: 17001: +++++++++++++++++++++++++++++++++++ Sep 1997: 15796: ++++++++++++++++++++++++++++++++ Oct 1997: 19446: +++++++++++++++++++++++++++++++++++++++ Nov 1997: 19842: ++++++++++++++++++++++++++++++++++++++++ `This analysis was produced by analog1.2.5. Running time: 13 seconds. http://wwwsolarattic com/primeHost/reporexg=1&mq=1&os=2&on=&Ss=1&Sn=&is=2&im&id=1&rs=4&rn=&rt=p&r1=n&fr=&to=&fy=&dy=&fi=&di=&TZ=&or=www.solarattic.com&ho=http%3A%2F%2Fwwwilage.c118 164422 SolarAttic Home Page 11/28/97 11:05 AM "Some aspect of SolarAttic's NEW alternative energy technology can be applied to every building structure worldwide! The markets are massive. Ed Palmer, CEO SolarAttk's Vision SolarAttic's Mission E,tpcutive Summary NEW Solar Technology Eliminates Roof Panels! NEW Ventilation Technology Eliminates Roof Vents! NEW Duct Technology Collects & Distributes Air Evenly! NEW SolarAttic Ridge Ventilator Opens New Era In Ventilation! DPO BEGINS WITH ARIZONA & COLORADO/ Direct Public Stock Offering 25 50 75 . r SITE SUMMARY: SolarAttic has invented and patented a revolutionary new solar technology that eliminates the need for roof mounted solar panels for heating swimming pools,hot water and space. Our new energy technology uses the massive amount of renewable solar heat energy that you already have inside the roof and attic of your home. The roof of your house functions like a massive solar collector and we have developed the technology to inexpensively use this solar heat energy that your roof collects. For example, SolarAttic's swimming pool heater(the PCS1) is already in 30 states heating pools for less than $10 a month. You can contrast that with a gas pool heater that can easily cost$200 or more per month to operate. Or, you can contrast it to a solar panel pool heating system that requires a massive amount of roof space. With SolarAttic's technology, you get all the benefits of renewable solar energy without having the aesthetic and other problems associated with roof mounted solar collector panels. While we were crawling around those hot attics, we also wound up inventing a new duct and ventilation technology. Our new duct collects all the heat inside your attic and provides controlled attic ventilation from the inside. No more ice dams. You can now be assured of proper attic ventilation year around. You can reduce your summer air conditioning costs inexpensively with our new SolarAttic Ridge Ventilator. We've taken the guess work out of ventilation and even eliminated the need for roof vents of all types. This adds up to big business for SolarAttic and we expect to reach $100 Million in revenues within ten years time. Explore our site and learn about a NEW alternative energy technology that uses solar-derived hot attic air. If you want to reduce the burning of fossil fuels, you'll find SolarAttic's green products very helpful. Our simple technology will save substantial amounts of energy worldwide. You can even place your order online. At the bottom of each page,you will find a simple navigational guide (links) that will take you back to all the major areas of our site. Use it with your 40 browser fwd/back arrows. Keywords. http://www.solarattic.com/index.htm Page 1 of 2