There is a story about the famed Irish novelist Sean O'Faolain who once quoted an old peasant woman on the subject of leprechauns. "Do you believe in them? he asked her. "I do not", she said, "but they're out there!" I guess we feel the same way out the Y2K bug. We understand the potential problems and we know they're there; we just don't believe it will have the material effect on the world as advertised. Yet, to a vast audience of anyone that will listen, an entire industry was borne just to address the potential problems of the Millennium. It has effected the market which hates uncertainty and plagues corporate planners. For our readers, we are going out on the limb and predicting that come January 1st, 2000, except for some minor glitches, it will be " all quiet on the Western front." Perhaps the Japanese would understand this best. In Japan there is a concept or expression called honne to tatemae, or roughly: There is the official line and then there is what we know to be true.

This Millennium newsletter marks the end of a century that brought us the greatest and most influential technological developments the world has ever seen. On this, the eve of a new millennium, it is an appropriate time to reflect on what we do and who we are. Please excuse me for waxing poetic, but what better time to take inventory of our work, our investments goals and ourselves than now.

It is indeed an amazing time we are living in. The Internet has revolutionized the business landscape in a mere 6 years. New business models previously thought unconscionable and wealth the level of which the world has never seen is being spawned right before our eyes. A whole new cyberworld has been born and it is open all night long! Today the Net expands at Geometric, not arithmetic rates. Important and grave economic issues awaits the web: First, when, if ever, should Internet sales be taxed? States want to tax sales to fund education and the general welfare. Those behind e-commerce recognize the devastating and halting effect this could have on the growing web related economy. Such a change might encourage an economically driven recession as most industry is now gearing up to encourage e-commerce. Another issue to address is that of privacy abuses: with the customer the epicenter of e-commerce, the Net must both protect the customers privacy but also success depends upon insuring that the information is reliable. This will be another is a series of hurdles the Net must overcome to continue its ascent as the motivating economic force of the Millennium.

In today's work environment, one needs an edge. There is great competition in all areas of industry. Recently I read about an interesting restaurant in London called "Just Around the Corner" (Forbes Magazine). It is a simple, tony two-storied establishment in Northwest London. How is it different from other restaurants; it does NOT list prices for its dishes. "You pay as you like," says Vasos Michael, the restaurant's founder. They leave the bill up to the patron assuming that a happy and satisfied consumer will pay more for his fares. Just Around the Corner is very successful (as you might imagine) and it is booked every night. Although this may be a very unorthodox manner of running a business, imagine treating your clients the same way. Would they overpay by an average of 10% as they customarily do at Just Around the Corner for your services if you left it up to them (lawyers take heed, this is not a trick question).

We at Wellfleet Partners, Inc. ("WPs") strive for client satisfaction. We get great pleasure from the occasional phone call or written note congratulating us for a job well done. Recently we ran our first ad in select financial periodicals together with an extensive direct mailing. When we finished the draft listing the companies we either invested in, raised money for or consulted with in fiscal 1999, we ourselves were pleasantly surprised as to how far we had come in such a short period of time. We want to thank in particular our Advisory Board members for their tireless efforts this past year. Messrs. Luxenberg, Lippe, Munro, Simpson, Mann and Simon have been instrumental in our development. Don't be afraid to offer advise, comments, constructive criticism or even the occasional compliment.

We are very pleased to announce that Dr. Daniel Levy has been newly appointed to our Advisory Board. Dr. Levy has a prestigious background in Medicine, is an active real estate developer, has extensive experience investing in venture capital, private and public companies, and is active in the local political movement on Long Island. We felt having a medical doctor on our Advisory Board would be beneficial and synergistic.

There are several interesting misconceptions about Venture Capitalists that we are often asked about. First, can small companies still find venture capital in light of the popular "VC Megafunds" of the 1990s. Because these megafunds and large VC need to invest in $5 - $10 million tranches (there is a current glut of investment capital) smaller VCs like WPs can focus on the lower end of the market ($1 -$3 million), often syndicated with other small VCs and "Angel Investors."; Second, why do VCs give relatively lower valuations than investment banks? We are often the earlier stage investor and participate with the entrepreneur-management to build the business model, hire key personnel and generally be at the company’s beck and call during its infancy. For that, as well as the additional risk of being in early, VC’s get more for their investment; and Third, contrary to its popular misconception, VCs do not want control, only a fair portion of, and a say in a Company for their risk capital. We invest in Management and a business model.

We are currently in the process of incubating our first start-up Aluminium.com, which will be the premium internet aluminum online exchange. It is being created to enhance the buying and selling of aluminum, a $100 Billion worldwide marketplace. An online exchange encourages efficient pricing and liquidity and the majority of the initial shareholders of the company are "dedicated" users and/or value added investors. We hope to be online by the Spring. In addition to incubating our first company, we have reached a strategic agreement with Net@Work, Inc., providers of e-business solutions for corporate customers. We intend to send our corporate clients to them to develop their online businesses and web sites while they will send us attractive start-ups to review for potential investment, capital raising or consulting services. A "match made in heaven". Finally, we have also acted as the finder and strategic consultant between two members of our corporate "Kereitsu", Register.com, Inc. and K2 Design, Inc. which announced a strategic partnership in early December. As our "Kereitsu" enlarges, we hope to continue to enhance the shareholder’s values of our corporate clients by making strategically desirable introductions and forging alliances.

During the past quarter we dramatically increased our investment in LivePrint.com, and invested in HomeworkCentral.com, Arvee Systems, Inc. (see prior newsletter or our website for information on the aforementioned three companies), Aluminium.com and LiveMind, Inc. The latter was in conjunction with one of our corporate clients GoAmerica, Inc. and DotCom Ventures, a San Francisco based VC we have worked with on now five transactions. LiveMind, a developmental stage company, specializes in the creation of software to offer E-commerce solutions to mobile consumers by offering easily retrievable content.

I want to conclude this year-end, Millennium newsletter with a thought from my beloved mother: It involves the arbitrary and capriciousness of TIME. Without artificial markers such as, watches, calendars, newspapersº, how would we ever mark time? It is the activities of the day (Sunday is football, Monday carpoolº) that marks the day, week, month or year, not the reverse. For Jews, we make the Sabbath special. Through the generational observation of rituals, we sanctify that day. For Christians, Sunday is made special. Why is it then that the year 2000 is so unique? Obviously we have the power to make special and bring Holiness and goodness to time, not the reverse! Thus, perhaps the greatest change we will see on January 1st, 2000 is our renewed commitment to make this a new and better time. A better us, G-d bless.

Sincerely, Mark I. Lev, Esq. Managing Director Wellfleet Partners, Inc.

Zachary Prensky Managing Director WellfleetPartners, Inc.

NOTE: This report was produced by Wellfleet Partners, Inc. ("WPI") from various public research sources, for the sole purpose of general information. WPI makes no warranties to its factual content and is not a brokerage firm nor securities dealer; therefore, nothing contained in this report shall constitute an offer to sell, solicit or buy any securities or investment advice. Investment in these securities mentioned here involves risk and should not be considered without first reading the Company’s most recent financial statements, 10Q and 10K its Private Placement Memorandum if applicable and discussing the investment with your registered representative or financial advisor.