aebweb@temne.co.uk 112.231.000.1 g.dalton@hotmail.com 10&(meM@wlkerteck.net.ca ienglish@biscuit.co.uk/sharetrade

Hi Ivan -

You asked me to keep an eye on what is happening with Gerberman. I don't know where you got your info from, but it looks as though you have struck oil. Personally I thought that the management buy-out had gone so well that the company would not want to be absorbed by a bigger competitor. Still, I considered what you said about the company being highly leveraged, and that this was affecting the price/earnings ratio on the shares.

In fact, the more I looked at it, the more I decided that it would be worth shadowing your investment with a few grand from my own pocket. If all goes well, we will make a good profit from the dividend, and the share value will increase again after that. Gerberman has been in talks with Holler Electric, and the two companies are a good fit. I understand that Holler will make an offer for Gerberman before the end of the month.

It is quite probable that Holler Electric will offer a premium of about 12% on the current price, so the shares should be a nice little earner over the next fortnight. Since the takeover will not be hostile and Gerberman shareholders will benefit, it looks like everyone will do well - except for Holler's competitors, of course :>

By the way, I've decided to sell my Crossfire holding - the share price has been underperforming for the last month or so, and I'm looking for a new prospect to put the investment into. But with the market so flat, Gerberman is the only interesting one I can find!

Gerry.

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