ECSI Reports Third Quarter Results
Monday May 15, 4:22 pm ET


CLIFTON, N.J.--(BUSINESS WIRE)--May 15, 2006--Electronic Control Security Inc. (OTC BB: EKCS - News) a leading manufacturer of perimeter security solutions for the Department of Defense (DoD), the Department of Energy (DoE) and nuclear power stations, today announced revenues of $5,043,622 for the 2006 Period as compared to net revenues of $3,353,819 for the 2005 Period, representing an increase of approximately 50%. Net revenues for the three months ended March 31, 2006 were $984,057 as compared to $1,396,227 for the corresponding three months in 2005. The increase in net revenues during the 2006 Period as compared to the 2005 Period is primarily attributable to government contracts under the Integrated Base Defense Security System (IBDSS) delivery orders. The decrease in net revenues during the three months ended March 31, 2006 as compared to the corresponding three-month period in 2005 is primarily attributable to an action taken by one of our vendors in arbitrarily placing us on credit hold. This resulted in our inability to ship certain finished product during the three months ended March 31, 2006 and record revenues in the amount of approximately $2.2 million on such contract. We are currently negotiating with a finance company to support the credit requirements of the vendor and expect to be able complete the shipments by the end of the next quarter.
Gross margins for the 2006 Period were 22.86% of revenue as compared to 44.79% of revenue for the 2005 Period and 25.47% of revenue for the three months ended March 31, 2005 as compared to 54.66% for the corresponding three-month period in 2005. The decrease in gross margins for each of the 2006 Period and the three months ended March 31, 2006 as compared to the corresponding periods in 2005 is primarily attributable to an increase in the utilization of sub-contractors related to the Tinker Air Force Base project as well as an increase in the order mix for lower gross margin products during each of the periods in 2006. In the corresponding periods in 2005 we performed a greater percentage of higher gross profit generating activities such as design and engineering services. The decrease in each of the 2006 Periods is also partially attributable to an increase in repair costs of defective sensors delivered by a principle supplier. These sensors had to be reworked and ultimately replaced on a major installation at a cost of approximately $150,000.

Net loss before dividends related to preferred stock for the 2006 and 2005 Periods is $(1,040,736) and $(307,046), respectively. The net loss before deemed dividends, for the three months ended March 31, 2006 was $(608,360) and a net profit of $57,052 for the corresponding period in 2005.

There are currently 8,723,601 shares of Electronic Control Security Inc. issued and outstanding.

Arthur Barchenko, President and CEO, stated, "Although we are not pleased with the results of this quarter we believe that $3.5- $4.0 million will be shipped during the fourth quarter. Our objective is to achieve an improved mix between the private and government sectors which should significantly increase ECSI's gross margins. Based on the number of proposals outstanding for the industrial and chemical, petro-chemical markets, we expect to see profitable growth in sales over the next several years. A more detailed description of the financing activity and financial statements are contained in the 10QSB filed on May 15, 2006 with the SEC."

About ECSI:

ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The ISO 9001 Registered company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562; for more information on ECSI and its customers please go to http://www.anti-terrorism.com.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: Statements in this press release, including the statements relating to projected future financial performance, are considered forward-looking statements under the federal securities laws. Sometimes these statements will contain words such as "anticipates," "expects," "plans," "projects," "estimates," "outlook," "forecast," "guidance," "assumes," and other similar words. These statements and those contained in the 10KSB and 10QSB's are not guarantees of the Corporation's future performance and are subject to risks, uncertainties and other important factors that could cause the Corporation's actual performance or achievements to be materially different from those the Corporation may project. These are only some of the numerous factors that may affect the forward-looking statements contained in this press release.



Contact:
ECSI
Kathleen Zomack, 973-574-8555

The drop in the share price seems an odd reaction to what appears to be good news. Why are there still sellers at this level?

What a disappointing day we had Monday! I am beginning to think there must not be any good news coming from the quarterly report.

Do you think there is anything to be deduced from this filing?

Well, here we are close to quarterly report time, after one of the longest periods with no news in recent memory. I wonder what happened to that money (in the form of stock) we paid for promotion of the company? It seems like that was actually the end of any promotion. As always, I am hoping for a profitable quarter.

I hope to see some of the members of the Raging Bull fpfx board here soon. Welcome to anyone who comes over. Anyway, here is the recent settlement between the Shareholder Value Committee and FPFX.

Item 8.01
Other Events.




On April 6, 2006, The Company and the petitioners in the lawsuit styled Danford L. Martin, et al. v. FirstPlus Financial Group, Inc., et al ., in the Second Judicial District Court for the State of Nevada (the “Election Suit”), entered into a settlement agreement to resolve the disputes in the Election Suit. Pursuant to the settlement agreement:



•
the Company agreed to pay to the petitioners an aggregate amount of up to $300,000 for the expenses they incurred arising from the Election Suit;




•
upon the Company’s payment of the petitioners’ expenses, the parties will cause all claims and counterclaims in the Election Suit to be dismissed with prejudice and will exchange mutual releases;




•
the petitioners agreed not to nominate an opposing slate of directors for election at the Company’s 2006 Special Meeting of Shareholders (the “Special Meeting”) or to take any action to delay, interfere with or contest the Special Meeting;




•
the Company agreed that upon receipt by the FirstPlus Financial Group Grantor Residual Trust (the “Grantor Trust”) of funds representing 53% of the FPFG Intercompany Claim previously assigned by the Company to the Grantor Trust, it would cause the Grantor Trust to make distributions to the holders of the Company’s common stock of fifty percent of such funds beginning 45 days after the first release of such funds to the Grantor Trust and annually thereafter. The Company will announce record dates for these distributions at the applicable times;




•
prior to the initial distribution from the Grantor Trust, the Company has agreed not to issue any shares of its common stock, except pursuant to agreements in effect on the date of the settlement agreement; and




•
for a year following the initial distribution from the Grantor Trust, the Company agreed not to issue any shares of its common stock pursuant to a transaction that would result in the issuance of shares of common stock in an amount equal to 30% of the then outstanding shares, unless the Company obtains a fairness opinion with respect to such transaction.




The court dismissed the Election Suit on April 7, 2006.




















SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.





Date: April 10, 2006
FIRSTPLUS FINANCIAL GROUP, INC.






By:
/s/ Jack (J.D.) Draper


Jack (J.D.) Draper



President

Form 10KSB for UNIVERSAL INSURANCE HOLDINGS INC


--------------------------------------------------------------------------------

3-Apr-2006

Annual Report



ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
A NUMBER OF STATEMENTS CONTAINED IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 THAT INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN THE APPLICABLE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE BUT ARE NOT LIMITED TO THE COSTS AND THE UNCERTAINTIES ASSOCIATED WITH THE RISK FACTORS SET FORTH IN ITEM 1 ABOVE. INVESTORS ARE CAUTIONED THAT THESE FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE OR RESULTS.

OVERVIEW

UPCIC's application to become a Florida licensed property and casualty insurance company was filed with the OIR on May 14, 1997 and approved on October 29, 1997. UPCIC's proposal to begin operations through the acquisition of homeowner insurance policies issued by the JUA was approved by the JUA on May 21, 1997, subject to certain minimum capitalization and other requirements. One of the requirements imposed by the OIR was to limit the number of policies UPCIC could assume from the JUA to 30,000.

The OIR requires applicants to have a minimum capitalization of $5.0 million to be eligible to operate as an insurance company in the State of Florida. Upon being issued an insurance license, companies must maintain capitalization of at least $4 million. If an insurance company's capitalization falls below $4 million, then the company will be deemed out of compliance with OIR requirements, which could result in revocation of the participant's license to operate as an insurance company in the State of Florida.

The Company has continued to implement its plan to become a financial services company and, through its wholly-owned insurance subsidiaries, has sought to position itself to take advantage of what management believes to be profitable business and growth opportunities in the marketplace.

The Company entered into an agreement with the JUA whereby during 1998, UPCIC assumed approximately 30,000 policies from the JUA. In addition, UPCIC received bonus incentive funds from the JUA for assuming the policies. The bonus funds were maintained in an escrow account for three years. These bonus payments were not included in the Company's assets until receipt at the end of the three-year period. UPCIC could not cancel the policies from the JUA for this three-year period at which point UPCIC received the bonus funds. The Company will not be receiving any additional bonus payments.

The Company expects that premiums from renewals and new business will be sufficient to meet the Company's working capital requirements beyond the next twelve months.

The policies obtained from the JUA provided the opportunity for UPCIC to solicit future renewal premiums. The majority of the policies obtained from the JUA renewed with UPCIC. In an effort to further grow its insurance operations, in 1998 the Company began to solicit business actively in the open market. Through renewal of JUA business combined with business solicited in the market through independent agents, UPCIC is currently servicing approximately 89,000 homeowners insurance policies. To improve underwriting and manage risk, the Company utilizes standard industry modeling techniques for hurricane and windstorm exposure. To diversify UPCIC's product lines, UPCIC underwrites inland marine policies. Management may consider underwriting other types of policies in the future. Any such program will require OIR approval. See Item 1, Competition under "Factors Affecting Operation Results and Market Price of Stock" for a discussion of the material conditions and uncertainties that may affect UPCIC's ability to obtain additional policies.

CRITICAL ACCOUNTING POLICIES

USE OF ESTIMATES. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company's primary areas of estimate are described below.

RECOGNITION OF PREMIUM REVENUES. Property and liability premiums are recognized as revenue on a pro rata basis over the policy term. The portion of premiums that will be earned in the future are deferred and reported as unearned premiums. The Company believes that its revenue recognition policies conform to Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements.

INSURANCE LIABILITIES. Claims and claim adjustment expenses are provided for as claims are incurred. The provision for unpaid claims and claim adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry.

Inherent in the estimates of ultimate claims are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates for casualty coverage is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In the case of UPCIC, this uncertainty is compounded by UPCIC's limited history of claims experience. In addition, UPCIC's policyholders are currently concentrated in South Florida, which is periodically subject to adverse weather conditions such as hurricanes and tropical storms. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in earnings currently.

DEFERRED POLICY ACQUISITION COSTS/DEFERRED CEDING COMMISSIONS. Commissions and other costs of acquiring insurance that vary with and are primarily related to the production of new and renewal business are deferred and amortized over the terms of the policies or reinsurance treaties to which they are related. Determination of costs other than commissions that vary with and are primarily related to the production of new and renewal business requires estimates to allocate certain operating expenses. When determining the maximum amount of deferred policy acquisition costs, investment income to be earned over the remaining policy period is estimated and taken into consideration. Estimates of the costs of losses, catastrophic reinsurance and policy maintenance are also required in the determination of the maximum amount of deferred policy acquisition costs. Deferred reinsurance commissions have reduced net deferred policy acquisition costs to $0 as of December 31, 2005; deferred ceding commission is $1,043,544 as of December 31, 2005.

PROVISION FOR PREMIUM DEFICIENCY. It is the Company's policy to evaluate and recognize losses on insurance contracts when estimated future claims and maintenance costs under a group of existing contracts will exceed anticipated future premiums and investment income. The determination of the provision for premium deficiency requires estimation of the costs of losses, catastrophic reinsurance and policy maintenance to be incurred and investment income to be earned over the remaining policy period.

REINSURANCE. In the normal course of business, the Company seeks to reduce the risk of loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. While ceding premiums to reinsurers reduces the Company's risk of exposure in the event of catastrophic losses, it also reduces the Company's potential for greater profits should such catastrophic events fail to occur. The Company believes that the extent of its reinsurance is typical of a company of its size in the homeowners insurance industry. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreement and consistent with the establishment of the liability of the Company. The Company's reinsurance policies do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company; consequently, allowances are established for amounts deemed uncollectible.

OFF-BALANCE SHEET ARRANGEMENTS

The Company had no off-balance sheet arrangements during 2005.

RELATED PARTIES

All underwriting, rating, policy issuance, reinsurance negotiations and certain administration functions for UPCIC are performed by UPCIC, Universal Risk Advisors and unaffiliated third parties. Claims adjusting functions are performed by Universal Adjusting Corporation, a wholly owned subsidiary of the Company and unaffiliated third parties.

Dennis Downes and Associates, a multi-line insurance adjustment corporation based in Deerfield Beach, Florida performs certain claims adjusting work for UPCIC. Dennis Downes and Associates is owned by Dennis Downes, who is the father of Sean P. Downes, COO and Senior Vice President of the Company. During 2005 and 2004, the Company expensed claims adjusting fees of $1,075,188 and $1,092,851, respectively, to Dennis Downes and Associates. As of December 31, 2005, the Company had accrued adjusting fees of $95,221 to Dennis Downes and Associates.

During 2005, Sean P. Downes filed a claim on his homeowner's policy issued by UPCIC as a result of damage incurred during Hurricane Wilma. UPCIC handled the claim in the ordinary course of its business and has made a loss payment to Mr. Downes in the amount of $214,409.

In July 2004, the Company borrowed monies from a private investor in the amount of $175,000 for working capital. In August 2005, this individual's son, Michael P. Moran, became UPCIC's Vice President of Claims. The loan was paid off in January 2006.

RESULTS OF OPERATIONS - YEAR ENDED DECEMBER 31, 2005 AND YEAR ENDED DECEMBER 31,
2004.

The fiscal year ended December 31, 2005 marked a significant improvement in the Company's operating results over recent past fiscal years. This improvement was primarily attributable to volume and rate increases, restructuring the homeowners' coverage offered, restructuring the Company's reinsurance coverage and working to control general and administrative expenses.

Gross premiums written increased 115.7% to $88,701,123 for the year ended December 31, 2005 from $41,120,962 for the year ended December 31, 2004. The increase in gross premiums written is primarily attributable to an approximate 107.9% increase in new business as well as an overall 7.8% premium rate increase. The increase in new business is partly attributable to the recent Florida windstorm catastrophes which has provided an opportunity in the otherwise competitive marketplace as certain companies are not accepting new business, as well as marketing initiatives the Company has undertaken.

Net premiums written increased 282.5% to $21,606,878 for the year ended December 31, 2005 from $5,648,548 for the year ended December 31, 2004. The increase in net premiums written reflects the impact of reinsurance, since

$67,094,245 or 75.6% of premiums written were ceded to reinsurers for the year ended December 31, 2005 as compared to $35,472,414 or 86.3% for the year ended December 31, 2004. The increase in net premiums written is attributable to an increase in new business, premium rate increases and changes to the Company's reinsurance program. Under the Company's quota share reinsurance treaty, the Company elected to cede 90% of gross written premiums, losses and loss adjustment expenses during the first five months of 2004 for all policies except for new and renewal without wind risk business with policy effective dates of June 1, 2003 and after versus 80% of policies with coverage for wind risk during the remaining seven months of 2004. The Company continued to cede 80% of policies with coverage for wind risk during the first five months of 2005 versus 55% of policies with coverage for wind risk during the subsequent six months of 2005 and 80% of policies with coverage for wind risk during the remaining month of 2005. The Company believes that the extent of its reinsurance is typical of a company of its size in the homeowners' insurance industry.

Net premiums earned increased 283.6% to $15,825,982 for the year ended December 31, 2005 from $4,125,757 for the year ended December 31, 2004. The increase in net premiums earned is attributable to an increase in new business, premium rate increases and changes in the reinsurance program noted above.

Commission revenue increased 67.2% to $2,525,168 for the year ended December 31, 2005 from $1,510,345 for the year ended December 31, 2004. Commission income is comprised mainly of the Managing General Agent's policy fee income on all new and renewal insurance policies and commissions generated from agency operations. The increase is primarily due to increased policy fee income attributable to an increase in new and renewal business.

Investment income consists of net investment income and net realized gains (losses). Investment income increased 285.5% to $687,085 for the year ended December 31, 2005 from $178,246 for the year ended December 31, 2004. The increase is primarily due to higher investment balances and a higher interest rate environment during 2005.

Transaction fees consist of revenue from the selling of insurance leads. Transaction fee revenue decreased 82.1% to $298,310 for the year ended December 31, 2005 from $1,662,743 for the year ended December 31, 2004. The decrease is primarily due to the Company's decision to stop generating new business from Internet sales operations during the fourth quarter of 2005 and focus on core operations.

Other revenue decreased 37.6% to $325,272 for the year ended December 31, 2005 from $521,682 for the year ended December 31, 2004. Other revenue is comprised of fee revenue from direct sales and service revenue from other operations. The decrease is primarily attributable to the fact that there was less activity in the direct sales and service operations in 2005.

Losses and loss adjustment expenses ("LAE") incurred increased 322.1% to $9,597,984 for the year ended December 31, 2005 from $2,274,035 for the year ended December 31, 2004 as compared to net premiums earned which increased 283.6% to $15,825,982 for the year ended December 31, 2005 from $4,125,757 for the year ended December 31, 2004. Losses and LAE, the Company's most significant expense, represent actual payments made and changes in estimated future payments to be made to or on behalf of its policyholders, including expenses required to settle claims and losses. Losses and LAE are influenced by loss severity and frequency. Losses and LAE increased due to an increase in insured exposures and changes to the Company's reinsurance program discussed above. The Company's direct loss ratio for the year ended December 31, 2005 was 148.4% compared to 464.1% for the year ended December 31, 2004. The Company's direct loss ratio decreased principally due to the lower frequency and severity of claims in 2005. During 2005, Florida experienced three windstorm catastrophes (Hurricanes Dennis, Katrina and Wilma) which resulted in losses. As a result of these storms, the Company currently estimates it incurred $64,267,953 in losses prior to reinsurance and $4,050,000 net of reinsurance. The losses from these storms resulted in 104.2% of direct loss ratio. During 2004, Florida experienced 4 windstorms catastrophes (Hurricanes Charley, Frances, Ivan and Jeanne) which resulted in losses. As a result of these storms, the Company currently estimates it incurred $164,344,684 in losses prior to reinsurance and $4,175,976 net of reinsurance. Except for catastrophe claims, the Company believes that the severity and frequency of claims remained relatively stable for the periods under comparison. The Company's net loss ratio for the year ended December 31, 2005 was 60.6% compared to 55.1% for the year ended December 31, 2004. The net loss ratio increased due to the increase in net losses incurred in conjunction with changes to the Company's reinsurance program discussed above as well as higher than expected hurricane losses related to the 2004 catastrophes.

Catastrophes are an inherent risk of the property-liability insurance business, particularly in the geographic area where the Company does business, which may contribute to material year-to-year fluctuations in UPCIC's results of operations and financial position. The level of catastrophe loss experienced in any year cannot be predicted and could be material to the results of operations and financial position. While management believes its catastrophe management strategies will reduce the severity of future losses, UPCIC continues to be exposed to similar or greater catastrophes.

The reserve for direct unpaid losses and LAE at December 31, 2005 is $66,999,956. Based upon consultations with the Company's independent actuarial consultants and their statement of opinion on losses and LAE, the Company believes that the liability for unpaid losses and LAE is adequate to cover all claims and related expenses which may arise from incidents reported. The range of direct loss reserve estimates as determined by the Company's independent actuarial consultants is a low of $55,978,393 and a high of $76,285,129. The key assumption used to arrive at management's best estimate of loss reserves in relation to the actuary's range and the specific factors that led to management's best estimate is that the liability is based on management's estimate of the ultimate cost of settling each loss and an amount for losses incurred but not reported. However, if losses exceed direct loss reserve estimates there could be a material adverse effect on the Company's financial statements. Also, if there are regulatory initiatives, legislative enactments or case law precedents which change the basis for policy coverage, in any of these events, there could be an effect on direct loss reserve estimates having a material adverse effect on the Company's financial statements.

As a result of the Company's review of its liability for losses and loss adjustment expenses, which includes a re-evaluation of the adequacy of reserve levels for prior year claims, the Company's liabilities for unpaid losses and LAE, net of related reinsurance recoverables, as of December 31, 2005 were increased in the current year by $2,549,050 for claims that had occurred on or before the prior year balance sheet date. This unfavorable loss emergence resulted principally from higher than expected hurricane losses in 2004. The Company's liabilities for unpaid losses and LAE, net of related reinsurance recoverables, as of December 31, 2004 were increased by $55,480 for claims that had occurred on or before the previous year balance sheet date. This unfavorable loss emergence resulted principally from settling homeowners' losses established in the prior year for amounts that were more than expected. There can be no assurance concerning future adjustments of reserves, positive or negative, for claims through December 31, 2005.

General and administrative expenses decreased 33.0% to $4,012,391 for the year ended December 31, 2005 from $5,984,871 for the year ended December 31, 2004. General and administrative expenses have decreased primarily due to higher ceding commissions on premiums ceded to reinsurers as well as ceding commissions recognized as a result of a change in the quota share ceding percentage from 55% to 80% at December 1, 2005. The Company's ceding commission for the incremental 25% ceding percentage at December 1 is 35%. The ceding commission on the previous 55% ceding percentage is 31%.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary sources of cash flow are premium revenues, commission income and investment income.

For the year ended December 31, 2005, cash flows provided by operating activities were $26,974,611. Cash flows from operating activities are expected to be positive in both the short-term and reasonably foreseeable future. In addition, the Company's investment portfolio is highly liquid as it consists almost entirely of readily marketable securities. Cash flows from investing activities are primarily comprised of purchases and sales of debt and equity securities. Cash flows from financing activities primarily relate to Company borrowings.

During 2003, the Company purchased software for $520,000. Management believes the software will assist it in reducing overall management expenses versus the previous outside vendor agreement. The final installment payment on the software of $150,000 was paid in March 2005. In addition, the Company has outstanding loans in the amount of $119,186 to finance several vehicles and a boat, all acquired for business use and marketing of the Company's products and in the amount of $1,032,901 for working capital needs. The amounts will become due during the years 2006 through 2011.

In July 2004 the Company borrowed monies from a vendor and two private investors in the amounts of $175,000, $150,000 and $100,000 for working capital. The terms of the notes evidencing such loans require interest payments at a rate of 10% through January 2005 with equal monthly payments of principal plus interest thereafter until January 2006, the maturity date of the notes. The notes were

paid off in January 2006. In connection with the loans, in July 2004, the Company granted to the vendor and two private investors warrants to purchase 175,000, 150,000 and 100,000, shares of restricted Common Stock each at an exercise price of $.05 per share. The warrants vested over the payment terms and each expires in July 2009. These transactions were approved by the Company's Board of Directors.

In September 2004, the Company borrowed $50,000 from each of Bradley I. Meier, President and Chief Executive Officer of the Company, and Sean P. Downes, Senior Vice President and Chief Operating Officer of the Company. The monies were used to make an additional capital contribution to UPCIC to ensure that UPCIC met regulatory surplus requirements and to allow for continued development of UPCIC's business. The principal amount of these loans was repaid in October 2004. Also in September 2004, the Company borrowed $100,000 from a private investor, which loan, plus interest of $10,000, was repaid in October 2004. The funds were used to make an additional capital contribution to UPCIC to ensure that UPCIC met regulatory surplus requirements and to allow for continued development of UPCIC's business. In connection with this loan, the Company granted in 2004 and subsequently issued in February 2005 100,000 shares of restricted Common Stock to the private investor. These transactions were approved by the Company's Board of Directors.

Also in September 2004, the Company's reinsurance intermediary advanced the Company $250,000 which was used as an additional capital contribution to UPCIC.

In June 2005, the Company borrowed monies from two private investors and issued two promissory notes for the aggregate principal sum of $1,000,000 payable in five monthly installments of $200,000. Payment on one note commences on June 30, 2006 and commences on the other note on November 30, 2006. The loan amount subsequently was contributed to UPCIC as additional paid-in-capital. In conjunction with the notes, the Company granted a warrant to one of the investors to purchase 200,000 shares of restricted Common Stock at an exercise price of $.05 per share, expiring in June 2010. These transactions were approved by the Company's Board of Directors.

The following table represents the Company's total contractual obligations for which cash flows are fixed or determinable.


Total 2006 2007 2008 2009 2010 2010+
----- ---- ---- ---- ---- ---- -----
(Millions in Dollars)
Contractual obligations
Long-term debt $ 1,152 $ 767 $ 324 $ 16 $ 15 $ 17 $ 13
Operating leases 349 178 114 57 - - -
-------- ------ ------ ----- ----- ----- -----

Total contractual obligations $ 1,501 $ 945 $ 438 $ 73 $ 15 $ 17 $ 13
======== ====== ====== ===== ===== ===== =====




The balance of cash and cash equivalents as of December 31, 2005 was $48,038,736. Most of this amount, including the $10,546,045 cash received from reinsurers in advance of catastrophe claims, is available to pay claims in the event of a catastrophic event pending reimbursement for any aggregate amount in excess of $1,350,000 up to the 100 year PML which would be currently covered by reinsurers. Catastrophic reinsurance is recoverable upon presentation to the reinsurer of evidence of claim payment.

Accounting principles generally accepted in the United States of America differ in some respects from reporting practices prescribed or permitted by the Florida Office of Insurance Regulation. To retain its certificate of authority, the Florida insurance laws and regulations require that UPCIC maintain capital and surplus equal to the statutory minimum capital and surplus requirement defined in the Florida Insurance Code. The Company is also required to adhere to prescribed premium-to-capital surplus ratios. The Company is in compliance with these requirements.

The maximum amount of dividends which can be paid by Florida insurance companies without prior approval of the Florida Commissioner is subject to restrictions relating to statutory surplus. The maximum dividend that may be paid by UPCIC to the Company without prior approval is limited to the lesser of statutory net income from operations of the preceding calendar year or 10.0% of statutory unassigned capital surplus as of the preceding year end.

IMPACT OF INFLATION AND CHANGING PRICES

The consolidated financial statements and related data presented herein have been prepared in accordance with generally accepted accounting principles which require the measurement of financial position and operating results in terms of historical dollars without considering changes in the relative purchasing power of money over time due to inflation. The primary assets of the Company are monetary in nature. As a result, interest rates have a more significant impact on the Company's performance than the effects of the general levels of inflation. Interest rates do not necessarily move in the same direction or with the same magnitude as the cost of paying losses and LAE.

Insurance premiums are established before the Company knows the amount of loss and LAE and the extent to which inflation may affect such expenses. Consequently, the Company attempts to anticipate the future impact of inflation when establishing rate levels. While the Company attempts to charge adequate rates, the Company may be limited in raising its premium levels for competitive and regulatory reasons. Inflation also affects the market value of the Company's investment portfolio and the investment rate of return. Any future economic changes which result in prolonged and increasing levels of inflation could cause . . .

FPFX - The FPFX Shareholder Value Committee has a website at http://www.fpfx.org and Firstplus Financial, Inc has a website at http://firstplusgroup.com. Read the story on both and then watch for the vote on April 28,2006 as the two sides struggle for control of the company. (In the interest of full disclosure, I am a contributor to the FPFX Shareholder Value Committee and from time to time I will buy and sell the stock. You should not invest in this stock without a careful investigation on your own.)

FPFX - The FPFX Shareholder Value Committee has a website at www.fpfx.org and Firstplus Financial, Inc has a website at http://firstplusgroup.com. Read the story on both and then watch for the vote on April 28,2006 as the two sides struggle for control of the company. (In the interest of full disclosure, I am a contributor to the FPFX Shareholder Value Committee and from time to time I will buy and sell the stock. You should not invest in this stock without a careful investigation on your own.)

EKCS - This small perimeter security company could be on the verge of breaking out this year as a result of dealing with funding issues, reorganization of management and increased emphasis on making a profit. They have some impressive customers as revealed in one news release from last year. (Of course, you should do your own DD before investing)

ECSI RECEIVES ADDITIONAL TASK ORDER FOR OVER $2.7 MILLION FOR TASS PROCUREMENT UNDER IBDSS CONTRACT FROM U.S.A.F.

Clifton, NJ – September 21, 2005 – ECSI (Electronic Control Security, Inc. (OTC BB:EKCS) a leading manufacturer of perimeter security systems, today announced that it received a task order valued at over $2.7 million from the United States Department of the Air Force under the Tactical Automated Sensor Systems (TASS) Program for forward base rapid deployment applications. This is in addition to the previous orders which now brings the total to over $4,200,000.

Arthur Barchenko President and CEO stated, “After posting a record $6 million in sales for Fiscal ’05, we continue to close substantial orders for equipment and sales to be delivered in Fiscal ’06. This additional task order reaffirms the fact that ECSI is an integral part of the Department of Defense (DoD) security technology program and is recognized as an effective quality provider for both the military and Department of Homeland Security (DHS).”

Arthur further stated, “The Force Protection Program office of the U.S. Air Force Electronic Systems Center accepted proposals for multiple award contracts in support of the Integrated Base Defense Security system program (IBDSS) in June of 2003. Under the current agreement, ECSI is installing its premiere product lines designed to prevent unauthorized entry or access to large, medium and small military facilities. The first major award was for over $5.0 million to supply the technology solution at Tinker Air Force Base scheduled for completion by November, ’05.”
About ECSI
ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. The employment of risk assessment and analysis allows ECSI to determine and address the security needs of government and commercial-industrial installations. The company has teaming agreements with ARINC, Hudson Marine Inc., Lockheed Martin Transportation & Security Solutions, Parsons Infrastructure & Technology Group, SERCO, Inc., Tetra Tech, Inc. and other industry leaders. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers please go to http://www.anti-terrorism.com.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: Statements in this press release, including the statements relating to projected future financial performance, are considered forward-looking statements under the federal securities laws. Sometimes these statements will contain words such as "anticipates," "expects," "plans," "projects," "estimates," "outlook," "forecast," "guidance," "assumes," and other similar words. These statements are not guarantees of the Corporation's future performance and are subject to risks, uncertainties and other important factors that could cause the Corporation's actual performance or achievements to be materially different from those the Corporation may project.

The Corporation's actual results will likely be different from those projected due to the inherent nature of projections and may be better or worse than projected. Given these uncertainties, you should not rely on forward-looking statements. Forward-looking statements also represent the Corporation's estimates and assumptions only as of the date that they were made. The Corporation expressly disclaims a duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this press release to reflect the occurrence of subsequent events, changed circumstances or changes in the Corporation's expectations.

In addition to the factors set forth in the Corporation's 2004 Form 10-K and quarterly reports filed on Form 10-Q with the Securities and Exchange Commission, the following factors could affect the Corporation's forward-looking statements: the ability to obtain or the timing of obtaining future government awards; the availability of government funding and customer requirements both domestically and internationally; changes in government or customer priorities due to program reviews or revisions to strategic objectives (including changes in priorities in response to terrorist threats or to improve homeland security); the competitive environment; economic business and political conditions domestically and internationally; program performance; the timing and customer acceptance of product deliveries; performance issues with key suppliers and subcontractors; customer and other regulatory reaction to the proposed acquisition and the outcome of contingencies (including completion of any acquisitions and divestitures, litigation and environmental remediation efforts). These are only some of the numerous factors that may affect the forward-looking statements contained in this press release.
Contacts








For ECSI:
Kathleen Zomack
(973) 574-8555

EKCS - Just a reminder that this could be a pivotal year for this small perimeter security company. Recent developments such as adequate funding, reorganization of management and emphasis on a profitable year suggest a near term breakout. The following contract news is just one of the impressive accomplishments which should bear fruit this fiscal year ending 6/30/2006. Of course, you should do your own comprehensive investigation before investing in this company.

ECSI RECEIVES ADDITIONAL TASK ORDER FOR OVER $2.7 MILLION FOR TASS PROCUREMENT UNDER IBDSS CONTRACT FROM U.S.A.F.

Clifton, NJ – September 21, 2005 – ECSI (Electronic Control Security, Inc. (OTC BB:EKCS) a leading manufacturer of perimeter security systems, today announced that it received a task order valued at over $2.7 million from the United States Department of the Air Force under the Tactical Automated Sensor Systems (TASS) Program for forward base rapid deployment applications. This is in addition to the previous orders which now brings the total to over $4,200,000.

Arthur Barchenko President and CEO stated, “After posting a record $6 million in sales for Fiscal ’05, we continue to close substantial orders for equipment and sales to be delivered in Fiscal ’06. This additional task order reaffirms the fact that ECSI is an integral part of the Department of Defense (DoD) security technology program and is recognized as an effective quality provider for both the military and Department of Homeland Security (DHS).”

Arthur further stated, “The Force Protection Program office of the U.S. Air Force Electronic Systems Center accepted proposals for multiple award contracts in support of the Integrated Base Defense Security system program (IBDSS) in June of 2003. Under the current agreement, ECSI is installing its premiere product lines designed to prevent unauthorized entry or access to large, medium and small military facilities. The first major award was for over $5.0 million to supply the technology solution at Tinker Air Force Base scheduled for completion by November, ’05.”
About ECSI
ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. The employment of risk assessment and analysis allows ECSI to determine and address the security needs of government and commercial-industrial installations. The company has teaming agreements with ARINC, Hudson Marine Inc., Lockheed Martin Transportation & Security Solutions, Parsons Infrastructure & Technology Group, SERCO, Inc., Tetra Tech, Inc. and other industry leaders. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers please go to http://www.anti-terrorism.com.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT: Statements in this press release, including the statements relating to projected future financial performance, are considered forward-looking statements under the federal securities laws. Sometimes these statements will contain words such as "anticipates," "expects," "plans," "projects," "estimates," "outlook," "forecast," "guidance," "assumes," and other similar words. These statements are not guarantees of the Corporation's future performance and are subject to risks, uncertainties and other important factors that could cause the Corporation's actual performance or achievements to be materially different from those the Corporation may project.

The Corporation's actual results will likely be different from those projected due to the inherent nature of projections and may be better or worse than projected. Given these uncertainties, you should not rely on forward-looking statements. Forward-looking statements also represent the Corporation's estimates and assumptions only as of the date that they were made. The Corporation expressly disclaims a duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the date of this press release to reflect the occurrence of subsequent events, changed circumstances or changes in the Corporation's expectations.

In addition to the factors set forth in the Corporation's 2004 Form 10-K and quarterly reports filed on Form 10-Q with the Securities and Exchange Commission, the following factors could affect the Corporation's forward-looking statements: the ability to obtain or the timing of obtaining future government awards; the availability of government funding and customer requirements both domestically and internationally; changes in government or customer priorities due to program reviews or revisions to strategic objectives (including changes in priorities in response to terrorist threats or to improve homeland security); the competitive environment; economic business and political conditions domestically and internationally; program performance; the timing and customer acceptance of product deliveries; performance issues with key suppliers and subcontractors; customer and other regulatory reaction to the proposed acquisition and the outcome of contingencies (including completion of any acquisitions and divestitures, litigation and environmental remediation efforts). These are only some of the numerous factors that may affect the forward-looking statements contained in this press release.
Contacts








For ECSI:
Kathleen Zomack
(973) 574-8555

SYTE - How many .10 stocks can you name with a business that is actually profitable? I bet there are not many, and this one even has a reasonable public float!

FPFX- The FPFX Shareholder Value Committee has a website now! Go to www.fpfx.org for the details concerning the court ordered company meeting and election of the BOD. You may also want to look at the many recent SEC filings for FPFX at pinksheets.com. I am a contributor to the committee and from time to time I buy and sell this stock. You should not invest in Firstplus Financial, Inc (FPFX) without a thorough investigation of the company on your own.

FPFX - The FPFX Shareholder Value Committee has a website now! Read the whole story and follow the countdown to the court ordered meeting and election of BOD. The site is www.fpfx.org. (I would post the actual link, but I have not figured out how to do that here at IH. Perhaps someone could tell me to post a URL link)

Flem

FPFX Shareholder Value Committee files proxy seeking to elect new board of directors.


THE FPFX SHAREHOLDER VALUE COMMITTEE
7 Egret Lane, Aliso Viejo, CA 92656, 877-639-3739
April 3, 2006

Dear Fellow FirstPlus Financial Group, Inc Shareholder:

Pursuant to an order of the Second District Court of the State of Nevada (the "Nevada Court"), a Special Meeting of the Shareholders of FIRSTPLUS Financial Group, Inc. (the "Company") will be held on April 28, 2006. During the last seven years the Company's incumbent management has failed to file required SEC reports including but not limited to annual reports on Form 10-K and quarterly reports on Form 10-Q's, with their required accompanying audited and un-audited financial statements (other than the 10-KSB tardily filed September 22, 2005, the 10-QSB tardily filed October 25, 2005 and the 10-QSB tardily filed October 25, 2005, and the 10-QSB filed tardily November 21, 2005). The Company has not held an annual shareholder meeting or election of directors since March 1998. The Nevada Corporate Code, at NRS 78.345, provides that "If any corporation fails to elect directors within 18 months after the last election of directors required by NRS 78.330, the district court has jurisdiction in equity, upon application of any one or more stockholders holding stock entitling them to exercise at least 15 percent of the voting power, to order the election of directors in the manner required by NRS 78.330." As a result of the efforts of a group of shareholders calling ourselves the FPFX Shareholder Value Committee (the "Committee"), together with the efforts of other shareholders, the Nevada court has ordered the Company to call and hold a meeting of shareholders to elect directors. The Committee consists of fellow shareholders James T. Capretz, Robert D. Davis, George R. Eberting, James P. Hanson, and Danford L. Martin.

The Company's failure to file required reports and hold required shareholder meetings was the result of actions or inactions of the current board of directors and/or their predecessors. At the Special Meeting of Shareholders, the current directors will attempt to have themselves re-elected as directors of the Company. The Committee believes it is in the best interests of all shareholders of the Company to replace all current directors and appoint all new directors.

The Committee's proxy statement serves as our notice of the Committee's intent to nominate an opposing slate of director candidates consisting of James T. Capretz, Robert D. Davis, James P. Hanson, and Danford L. Martin. Nominations of the Committee's candidates will be made at the Special Meeting of Shareholders in compliance with the Company's articles of incorporation. The Committee believes that it is imperative to replace the present Board of Directors, to attempt to salvage the substantial value of the Company that we believe still remains, and return that value to the current shareholders, who are the owners of the Company. As more particularly described in Schedule I below, some members of the Committee are not holding Company securities merely to recoup value, but continue to purchase and sell those securities.

We invite you to attend the Special Meeting of Shareholders to be held at Silver Legacy Resort Casino, Room Expo A, 407 North Virginia Street, Reno, Nevada 89501, on Friday, April 28, 2006 at 10:00 a.m., Pacific Time.



--------------------------------------------------------------------------------
Enclosed is a proxy statement describing the business to be transacted at the meeting, and a yellow proxy card for use in voting at the meeting. WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE COMPLETE, DATE, SIGN AND PROMPTLY RETURN THE ACCOMPANYING YELLOW PROXY CARD IN THE ENCLOSED POSTAGE-PAID ENVELOPE SO THAT YOUR SHARES MAY BE REPRESENTED AT THE MEETING. Returning the yellow proxy card does not deprive you of your right to attend the meeting and to vote your shares in person. We look forward to seeing you at the meeting.
Sincerely,

Danford L. Martin FPFX Shareholder Value Committee member


WE URGE YOU NOT TO SIGN ANY PROXY CARD SENT TO YOU BY THE COMPANY. IF YOU HAVE ALREADY DONE SO, YOU MAY REVOKE YOUR PROXY BEFORE IT IS VOTED BY DELIVERING A LATER-DATED YELLOW PROXY CARD, OR BY VOTING IN PERSON AT THE MEETING. SEE "VOTING PROCEDURES" AND "PROXY PROCEDURES" BELOW.



--------------------------------------------------------------------------------


PROXY STATEMENT
FPFX SHAREHOLDER VALUE COMMITTEE



FOR SPECIAL MEETING OF SHAREHOLDERS TO ELECT DIRECTORS OF
FIRSTPLUS FINANCIAL GROUP, INC.
To Our Fellow FIRSTPLUS Financial Group, Inc. Stockholders:

General

Pursuant to an order of the Second District Court of the State of Nevada
(the "Nevada Court"), a Special Meeting of the Shareholders ("Special Meeting")
of FirstPlus Financial Group, Inc. ("FirstPlus" or the "Company") will be held at 10:00 a.m. on April 28, 2006. The Special Meeting will be held at Silver Legacy Resort Casino, Room Expo A, 407 North Virginia Street, Reno, Nevada 89501, on Friday, April 28, 2006 at 10:00 a.m., Pacific Time.

This Proxy Statement and the accompanying yellow proxy card ("Committee Yellow Proxy Card") are being furnished to shareholders ("Shareholders") of FirstPlus Financial Group, Inc. in connection with the solicitation of proxies by the FPFX Shareholder Value Committee (the "Committee). The Committee consists of your fellow Stockholders James T. Capretz, Robert D. Davis, George R. Eberting, James P. Hanson, and Danford L. Martin.

The date of this proxy statement is April 3, 2006. The FPFX Shareholder Value Committee intends to mail the proxy statement and the attached yellow proxy card to the Shareholders of FirstPlus on or about April 3, 2006.

This Proxy Statement and the enclosed Committee Yellow Proxy Card are being furnished to you, the Shareholders of FirstPlus, in connection with the solicitation of proxies by the Committee for use at the Special Meeting and at any adjournments, postponements or rescheduling thereof.

The Committee is proposing and soliciting proxies in support of a slate of four candidates to be nominated and stand for election to the Board of Directors at the Special Meeting (the "Committee Nominees"). If we become aware of additional director positions to be voted upon at the Special Meeting, or other matters that are to be considered at such meeting in addition to the election of directors, we anticipate that these proxy materials will be modified in response to such changes.

The Committee Nominees are James T. Capretz, Robert D. Davis, James P. Hanson, and Danford L. Martin, and they will be nominated to stand for election in opposition to the nominees of the current Board of Directors.

THE COMMITTEE URGES YOU TO VOTE "FOR" THE COMMITTEE NOMINEES ON THE ENCLOSED COMMITTEE YELLOW PROXY CARD.
As discussed in more detail under the heading "Election of Directors" in this Proxy Statement, Shareholders who vote on the Committee Yellow Proxy Card will be able to vote for the election of the four Committee Nominees. The Committee Nominees, if elected, will constitute all of the members of the Board of Directors.






--------------------------------------------------------------------------------

FPFX Firstplus Financial Files Annual Report

31-Mar-2006

Annual Report



ITEM 6. PLAN OF OPERATION.
General

FIRSTPLUS Financial Group, Inc. (the "Company") was a diversified consumer finance company that originated, serviced, and sold consumer finance receivables. The Company operated through various subsidiaries until 1998 when macroeconomic factors adversely affected financial markets and largely destroyed the industry's access to the capital markets. Without access to working capital, the Company's ability to provide consumer-based products evaporated and, like virtually all its competitors, it saw its business liquidated to satisfy obligations. The Company's principal operating subsidiary, FIRSTPLUS Financial, Inc. ("FPFI"), engaged in the business of originating, purchasing, marketing and servicing home equity loans. Prior to the collapse of the financial markets, its primary loan product was a credit consolidation or home improvement loan, which was generally secured by a second lien on real property (commonly referred to as a "high loan to value" or "HLTV" loan). Over the course of many years, FPFI originated billions of dollars of loans. By 1998, FPFI had attained a market leadership position in the HLTV loan business.

In March 1999, two wholly-owned subsidiaries then owned by the Company, FPFI, and FIRSTPLUS Special Funding Corp., filed for reorganization under Chapter 11 of the United States Bankruptcy Code. FIRSTPLUS Special Funding Corp. was a special purpose entity formed to facilitate certain borrowings by FPFI. The filing was made in the United States Bankruptcy Court for the Northern District of Texas in Dallas. Neither the Company, nor any of its other subsidiaries, sought bankruptcy protection.

FPFI's plan of reorganization was confirmed on April 7, 2000 by the United States Bankruptcy Court, Northern District of Texas, Dallas Division. The plan of reorganization provided for the creation of the FPFI Creditor Trust (the "Creditor Trust") to facilitate implementation of the plan of reorganization, to hold trust assets for the benefit of the beneficiaries, to resolve claims, to make distributions in accordance with the plan of reorganization and to provide various administrative services related to the Creditor Trust and the implementation of the plan of reorganization. Under the plan of reorganization, the Company still owned FPFI but could not transfer its interest in FPFI until the Creditor Trust terminates. However, the Creditor Trust trustee is the sole officer and director of FPFI. The stock was transferred to a voting trust whereby the voting trust would have the sole power to hold and vote the stock. As a result, the Company has no interest in FPFI or the Creditor Trust's assets other than its interest in the FPFI Intercompany Claim.

In the plan of reorganization, the Company was able to resolve many of its own creditor claims through the plan of reorganization. In addition, the Company received the FPFG Intercompany Claim as a general unsecured claim defined in the plan of reorganization to be in an amount that was not to be less than $50 million. By being a holder of the FPFG Intercompany Claim, the Company became a beneficiary of the Creditor Trust. Under the plan of reorganization, the Company would only receive distributions as a beneficiary of the Creditor Trust from payments on the FPFG Intercompany Claim based on a previous series of securitized loan pools that had been sold in the marketplace. At that time, the amount and timing of cash flow from residuals were completely unknown. The Company has no operations with respect to, or any control over, the securitized loans.



--------------------------------------------------------------------------------

To settle other claims asserted against it, the Company assigned portions of the FPFG Intercompany Claim to various creditors. Consistent with the plan of reorganization, in settlement of the claims of the holders of the Company's 7.25% Convertible Subordinated Notes due 2003, the bondholders received an instrument representing the right to receive an assignment of 25% of the FPFG Intercompany Claim, permitting the bondholders to become a direct beneficiary of the Creditor Trust, and an agreement to instruct the Creditor Trust to make two payments to the bondholders of $1,428,000 based on certain conditions. The bondholder settlement was consummated in June 2001. Two of the bondholders also received agreements allowing them to convert portions of their new interest into an aggregate of 5,555,000 shares of the Company's common stock. The Company believes that it is entitled to a reassignment of a portion of the new interests from the bondholders with conversion rights and has initiated discussions with one of the holders and the trustee for the new interests regarding the reassignment.

At the closing of the plan of reorganization, in settlement of claims of Paine Webber Real Estate Securities Inc. ("Paine Webber"), the Company assigned a 22% interest in the FPFG Intercompany Claim to Paine Webber allowing Paine Webber to become a direct beneficiary of the Creditor Trust. The Paine Webber claim has been settled, and the Company recovered the assignment from Paine Webber in August 2005.

The Company has agreed to pay 1.86% of the distributions it receives, up to an aggregate amount of $931,000, on the FPFG Intercompany Claim to Thaxton Investment Corporation ("Thaxton"). The amounts payable to Thaxton are based on a settlement of disputes concerning the purchase price paid by Thaxton to FirstPlus Consumer Finance, Inc. ("Consumer Finance"), then a subsidiary of the Company, pursuant to the sale of all of the assets of Consumer Finance to Thaxton in 1999.

The Company has previously discussed with other creditors settlement of various claims by assignment of portions of the FPFG Intercompany Claim. For example, the Company had agreed to assign a 7.6% interest in the distributions to its former landlord in connection with amendments to the Company's then existing lease for its executive and administrative offices. However, negotiations with this landlord and other parties have been dormant in recent years. There is no assurance that these parties may not assert claims in excess of the Company's current estimate of the value of these claims or that there are no additional parties who may assert claims with respect to the FPFG Intercompany Claim. Since the bankruptcy proceedings, the FPFG Intercompany Claim had been the only substantial asset of the Company and the only source of potential payment for its obligations. The Company has booked a valuation reserve of approximately $3.0 million against the amount set aside for potential creditors claims.

There can be no assurance as to the ultimate value of the FPFG Intercompany Claim or the timing of distributions on the FPFG Intercompany Claim.

Although the Company was not subject to any bankruptcy proceedings, it had no income producing activities and was dependent on its subsidiaries to fund its obligations. FPFI was severely limited in its ability to provide funds to the Company as a result of the bankruptcy filing. The Company's other significant operating subsidiary at the time, Western Interstate Bancorp ("WIB"), was limited in its ability to release funds to the Company due to its debt covenant restrictions. Additionally, WIB's main operating company, an FDIC-insured industrial loan company, FIRSTPLUS Bank, was also limited in the amount of funds that it could release by way of dividends or intercompany loans due to regulatory restrictions. These limitations caused the Company and its other subsidiaries to experience liquidity issues similar to FPFI.

The liquidity issues leading to the FPFI's bankruptcy filing and the subsequent lack of operations and sources of income of the Company required significant focus by senior management of the Company. Additionally, senior management concentrated on related strategic issues such as negotiating with lenders and creditors, finding new sources of financing, and reorganizing and recapitalizing the Company. The resources available to the Company have been limited by the liquidity issues and the downsizing of the Company and its operations.

Primarily due to lack of funds, the Company has for the most part been in a dormant capacity for the past several years. Since 1999, the Company has managed to avoid bankruptcy by negotiating with creditors



--------------------------------------------------------------------------------

and utilizing the anticipated but uncertain cash flow from an allowed unsecured claim against FPFI, more commonly known as the FPFG Intercompany Claim. As of December 31, 2005, the Company had approximately $1.3 million in cash and cash equivalents which management believes will be sufficient to cover operating expenses for the next twelve months. As of March 31, 2006, the trustee of the Creditor Trust has set aside approximately $12 million for the Grantor Trust, for which the Company is the sole beneficiary. The Company does not believe it will have to raise additional funds in the next twelve months.

The Company's management has withstood the pressure from creditors and avoided bankruptcy primarily by assigning portions of the FPFG Intercompany Claim to various creditors. However, the Company has maintained that one of its strategies has been to create value in the Company so that its prospects are enhanced for the future. The Company has been active in seeking a platform for operations and has pursued several opportunities; however, those opportunities were abandoned when the transactions did not meet the expectations of the Company after further examination and the Company learned of opposition to those transactions by certain shareholders.

Strategic Plan

Although the Company is not pursuing any specific opportunities at this time, it is reviewing the marketplace and its strategic plan. The areas for opportunity may include buying an existing company, merging with a growing concern or entering into a joint venture. In 2004, the Company received a substantial return on its investment in Capital Lending, a startup company which provides financial and risk services offering insured loan programs to financial institutions. In recent years, the financial services industry has seen substantial growth and the Company is confident that this trend will continue. The Company has engaged a consultant to assist in the development and implementation of its strategic plan. The Company offers strong leadership with the vision and passion needed to catapult the Company into any sector of the industry.

The Company has not identified a target business

To date, the Company has not selected any target business on which to concentrate its search for a business combination. Thus, there is no basis to evaluate the possible merits or risks of any target business or potential transaction into which the Company may enter. To the extent the Company enters into a transaction with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, the Company may be affected by numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. Although the Company's management will endeavor to evaluate the risks inherent in a particular target business, the Company cannot assure you that it will properly ascertain or assess all significant risk factors.

Sources of potential opportunities

The Company anticipates that business opportunities will be brought to its attention from various sources, including its network relationships, who may present solicited or unsolicited proposals. The Company's officers and directors as well as their affiliates may also bring transaction candidates to the Company's attention. While the Company does not presently anticipate engaging the services of professional firms that specialize in business acquisitions on any formal basis, the Company may engage these firms in the future, in which event the Company may pay a finder's fee or other compensation. In no event, however, will the Company pay any of its existing officers, directors or shareholders or any entity with which they are affiliated any finder's fee or other compensation for services rendered to it prior to or in connection with the consummation of a transaction.



--------------------------------------------------------------------------------

Selection of a potential business opportunity and structuring of a transaction

In evaluating a prospective business opportunity or transaction, the Company will consider, among other factors, the following:

• financial condition and results of operation;

• growth potential;

• experience and skill of management and availability of additional personnel;

• capital requirements;

• competitive position;

• stage of development of the products, processes or services;

• degree of current or potential market acceptance of the products, processes or services;

• proprietary features and degree of intellectual property or other protection of the products, processes or services;

• regulatory environment of the industry; and

• costs associated with effecting the business combination.

These criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular business opportunity or transaction will be based, to the extent relevant, on the above factors as well as other considerations deemed relevant by the Company's management in pursuing the business opportunity or transaction consistent with the Company's overall strategy. In evaluating a prospective business opportunity or transaction, the Company will conduct an extensive due diligence review which will encompass, among other things, meetings with incumbent management and inspection of facilities, as well as review of financial and other information which will be made available to the Company.

The fair market value of such business will be determined by the Company's Board of Directors based upon standards generally accepted by the financial community, such as actual and potential sales, earnings and cash flow and book value. If the Board of Directors is not able to independently determine that the target business has a sufficient fair market value, the Company will obtain an opinion or valuation from an unaffiliated, independent investment banking or business valuation firm with respect to the satisfaction of such criteria. For example, a valuation was obtained for the Company's proposed transaction with New Freedom Mortgage Corporation in 2001, although the transaction was not consummated, and the Company obtained a fairness opinion with respect to its initial equity investment in Capital Lending in 2002.

The time and costs required to select and evaluate a business opportunity and to structure and complete a transaction cannot presently be ascertained with any degree of certainty. Any costs incurred with respect to the identification and evaluation of a prospective business opportunity or transaction will result in a loss to the Company and reduce the amount of capital available to otherwise complete a business combination.

Probable lack of business diversification

While the Company may seek to pursue business opportunities with more than one target business, it is probable that the Company will have the ability to pursue only a single business opportunity or transaction. Accordingly, the prospects for the Company's success may be entirely dependent upon the future performance of a single business or investment. Unlike other entities that may have the resources to complete several transactions in multiple industries or multiple areas of a single industry, it is probable that the Company will not have the resources to diversify its operations or benefit from the possible spreading of risks or offsetting of losses. The Company's lack of diversification may:

• subject the Company to numerous economic, competitive and regulatory developments, any or all of which may have a substantial adverse impact upon the particular industry in which it may operate subsequent to a transaction, and



--------------------------------------------------------------------------------

• result in the Company's dependency upon the development or market acceptance of a single or limited number of products, processes or services.

Limited ability to evaluate the target business' management

Although the Company intends to closely scrutinize a prospective business opportunity or transaction, the Company cannot assure you that its assessment of the prospective business opportunity or transaction will prove to be correct. Furthermore, the future role of the Company's officers and directors, if any, in a prospective business opportunity or transaction cannot presently be stated with any certainty. While it is possible that one or more of the Company's current officers and directors will remain associated in some capacity with the Company following a prospective business opportunity or transaction, it is unlikely that any of them will devote their full efforts to the Company's affairs subsequent to prospective business opportunity or transaction. Moreover, the Company cannot assure you that its officers and directors will have significant experience or knowledge relating to the operations of the particular prospective business opportunity or transaction.

Following a transaction, the Company may seek to recruit additional executive officers or employees to supplement its current management. The Company cannot assure you that it will have the ability to recruit additional executive officers or employees, or that additional executive officers or employees will have the requisite skills, knowledge or experience necessary to enhance the Company's current management.

Competition

In identifying, evaluating and selecting a business opportunity, the Company expects to encounter intense competition from other entities having similar business objectives. Many of these entities are well established and have extensive experience identifying and effecting business opportunities directly or through affiliates. Many of these competitors possess greater technical, human and other resources than the Company and its financial resources will be relatively limited when contrasted with those of many of these competitors. While the Company believes there are numerous potential business opportunities or transactions that may be available to it, the Company's ability to compete in pursuing these opportunities or transactions will be limited by its available financial resources. This inherent competitive limitation gives others an advantage in pursuing these business opportunities or transactions.

Any of these obligations may place the Company at a competitive disadvantage in successfully pursuing a business opportunity or transaction. The Company believes, however, that its network relationships and the experience of its management team and Board of Directors may give it a competitive advantage over other competitors for pursuing business opportunities or transactions.

Financial Reporting Issues

Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

On June 3, 2005, the Company engaged Lightfoot Guest Moore & Co., PC, as its independent auditor for the year ending December 31, 2004. The Company had not formally had an independent auditor since September 1999, when Ernst & Young LLP resigned as the Company's principal accountant. The resignation of Ernst & Young LLP was discussed in a Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on October 6, 1999.

The Company disclosed the engagement of Lightfoot Guest Moore & Co., PC in a Current Report on Form 8-K filed with the SEC on September 22, 2005 (the "Form 8-K"), which included the following information:

On June 3, FirstPlus Financial Group, Inc. (the "Company") engaged Lightfoot Guest Moore & Co., PC as its new independent registered public accounting firm.

During the fiscal years ended December 31, 2004 and 2003 and through June 3, 2005, the Company had not consulted Lightfoot Guest Moore & Co., PC regarding either (i) the application of accounting principles to



--------------------------------------------------------------------------------

a specific completed or contemplated transaction, or the type of audit opinion that might be rendered on the Company's financial statements, and neither written nor oral advice was provided to the Company nor oral advice that was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any manner that was either the subject of a disagreement or event identified in response to paragraph (a)(1)(iv) of Item 304 of Regulation S-B.

Status of Financial Reporting

In January 1999, the Company announced that it would be implementing new accounting guidance regarding the valuation of its retained interests from securitization transactions which had been recently provided by the Financial Accounting Standards Board ("FASB"). FASB issued a draft Special Report ("A Guide to Implementation of Statement 125 on Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, Questions and Answers, Second Edition") which was finalized during December 1998. In this Special Report, FASB concluded that the "cash-out" method of valuing retained interests should be used to estimate fair value. The SEC Staff announced in December 1998 that the change to the "cash-out" method should be made by restatement. Based on this guidance, the Company decided to revise its methodology for estimating the fair value of certain financial instruments for each of the fiscal years in the three-year period ended September 30, 1997, the three-month transition period ended December 31, 1997, and the first three quarters of the fiscal year ended December 31, 1998. As the Company disclosed in its Form 10-Q for the quarter ended September 1998, it was expected that the impact would be material to the results of all prior periods.

As a result of limited resources and conflicting demands, the Company has not completed its analysis necessary to complete the restatement. In addition, the Company has not had the financial resources or personnel to prepare and file its periodic reports with the SEC. In July 2005, the Company received a letter from the SEC directing the Company to file all required reports or become subject to a revocation of registration under the Securities Exchange Act of 1934. In connection with the shareholders' meeting described under the heading "- Litigation - Special Meeting," the Company has obtained audited financial statements it believes to be sufficient to distribute a proxy statement and solicit proxies for the shareholders' meeting and election of directors. However, this information alone will not cure the Company's reporting delinquencies with the SEC. The Company has initiated discussions with the SEC regarding its compliance issues and has started the process to prepare its plan to correct any SEC reporting delinquencies.

Following the settlement of the Company's securities-related class action lawsuit in 2003, the Company began to analyze the extent of its liabilities and reporting compliance issues. In 2004, the Company received a small return on its investment in Capital Lending which allowed it to pay mounting debts and begin becoming compliant with its charter requirements in the State of Nevada. This also allowed the Company to organize its financial records in preparation for an audit of its financial statements for the year ended December 31, 2004, which is an expensive and time consuming process. Through changes in management and the nature of FPFI's bankruptcy and litigation filed against the Company, the business records have been scattered. As a result, gathering the necessary information to complete audited financial statements has taken more time than anticipated or would be required under other circumstances. The Company cannot currently estimate when it will complete the restatement or the delinquent reports for past time periods.



--------------------------------------------------------------------------------

Firstplus Financial files Annual Report

31-Mar-2006

Annual Report



ITEM 6. PLAN OF OPERATION.
General

FIRSTPLUS Financial Group, Inc. (the "Company") was a diversified consumer finance company that originated, serviced, and sold consumer finance receivables. The Company operated through various subsidiaries until 1998 when macroeconomic factors adversely affected financial markets and largely destroyed the industry's access to the capital markets. Without access to working capital, the Company's ability to provide consumer-based products evaporated and, like virtually all its competitors, it saw its business liquidated to satisfy obligations. The Company's principal operating subsidiary, FIRSTPLUS Financial, Inc. ("FPFI"), engaged in the business of originating, purchasing, marketing and servicing home equity loans. Prior to the collapse of the financial markets, its primary loan product was a credit consolidation or home improvement loan, which was generally secured by a second lien on real property (commonly referred to as a "high loan to value" or "HLTV" loan). Over the course of many years, FPFI originated billions of dollars of loans. By 1998, FPFI had attained a market leadership position in the HLTV loan business.

In March 1999, two wholly-owned subsidiaries then owned by the Company, FPFI, and FIRSTPLUS Special Funding Corp., filed for reorganization under Chapter 11 of the United States Bankruptcy Code. FIRSTPLUS Special Funding Corp. was a special purpose entity formed to facilitate certain borrowings by FPFI. The filing was made in the United States Bankruptcy Court for the Northern District of Texas in Dallas. Neither the Company, nor any of its other subsidiaries, sought bankruptcy protection.

FPFI's plan of reorganization was confirmed on April 7, 2000 by the United States Bankruptcy Court, Northern District of Texas, Dallas Division. The plan of reorganization provided for the creation of the FPFI Creditor Trust (the "Creditor Trust") to facilitate implementation of the plan of reorganization, to hold trust assets for the benefit of the beneficiaries, to resolve claims, to make distributions in accordance with the plan of reorganization and to provide various administrative services related to the Creditor Trust and the implementation of the plan of reorganization. Under the plan of reorganization, the Company still owned FPFI but could not transfer its interest in FPFI until the Creditor Trust terminates. However, the Creditor Trust trustee is the sole officer and director of FPFI. The stock was transferred to a voting trust whereby the voting trust would have the sole power to hold and vote the stock. As a result, the Company has no interest in FPFI or the Creditor Trust's assets other than its interest in the FPFI Intercompany Claim.

In the plan of reorganization, the Company was able to resolve many of its own creditor claims through the plan of reorganization. In addition, the Company received the FPFG Intercompany Claim as a general unsecured claim defined in the plan of reorganization to be in an amount that was not to be less than $50 million. By being a holder of the FPFG Intercompany Claim, the Company became a beneficiary of the Creditor Trust. Under the plan of reorganization, the Company would only receive distributions as a beneficiary of the Creditor Trust from payments on the FPFG Intercompany Claim based on a previous series of securitized loan pools that had been sold in the marketplace. At that time, the amount and timing of cash flow from residuals were completely unknown. The Company has no operations with respect to, or any control over, the securitized loans.



--------------------------------------------------------------------------------

To settle other claims asserted against it, the Company assigned portions of the FPFG Intercompany Claim to various creditors. Consistent with the plan of reorganization, in settlement of the claims of the holders of the Company's 7.25% Convertible Subordinated Notes due 2003, the bondholders received an instrument representing the right to receive an assignment of 25% of the FPFG Intercompany Claim, permitting the bondholders to become a direct beneficiary of the Creditor Trust, and an agreement to instruct the Creditor Trust to make two payments to the bondholders of $1,428,000 based on certain conditions. The bondholder settlement was consummated in June 2001. Two of the bondholders also received agreements allowing them to convert portions of their new interest into an aggregate of 5,555,000 shares of the Company's common stock. The Company believes that it is entitled to a reassignment of a portion of the new interests from the bondholders with conversion rights and has initiated discussions with one of the holders and the trustee for the new interests regarding the reassignment.

At the closing of the plan of reorganization, in settlement of claims of Paine Webber Real Estate Securities Inc. ("Paine Webber"), the Company assigned a 22% interest in the FPFG Intercompany Claim to Paine Webber allowing Paine Webber to become a direct beneficiary of the Creditor Trust. The Paine Webber claim has been settled, and the Company recovered the assignment from Paine Webber in August 2005.

The Company has agreed to pay 1.86% of the distributions it receives, up to an aggregate amount of $931,000, on the FPFG Intercompany Claim to Thaxton Investment Corporation ("Thaxton"). The amounts payable to Thaxton are based on a settlement of disputes concerning the purchase price paid by Thaxton to FirstPlus Consumer Finance, Inc. ("Consumer Finance"), then a subsidiary of the Company, pursuant to the sale of all of the assets of Consumer Finance to Thaxton in 1999.

The Company has previously discussed with other creditors settlement of various claims by assignment of portions of the FPFG Intercompany Claim. For example, the Company had agreed to assign a 7.6% interest in the distributions to its former landlord in connection with amendments to the Company's then existing lease for its executive and administrative offices. However, negotiations with this landlord and other parties have been dormant in recent years. There is no assurance that these parties may not assert claims in excess of the Company's current estimate of the value of these claims or that there are no additional parties who may assert claims with respect to the FPFG Intercompany Claim. Since the bankruptcy proceedings, the FPFG Intercompany Claim had been the only substantial asset of the Company and the only source of potential payment for its obligations. The Company has booked a valuation reserve of approximately $3.0 million against the amount set aside for potential creditors claims.

There can be no assurance as to the ultimate value of the FPFG Intercompany Claim or the timing of distributions on the FPFG Intercompany Claim.

Although the Company was not subject to any bankruptcy proceedings, it had no income producing activities and was dependent on its subsidiaries to fund its obligations. FPFI was severely limited in its ability to provide funds to the Company as a result of the bankruptcy filing. The Company's other significant operating subsidiary at the time, Western Interstate Bancorp ("WIB"), was limited in its ability to release funds to the Company due to its debt covenant restrictions. Additionally, WIB's main operating company, an FDIC-insured industrial loan company, FIRSTPLUS Bank, was also limited in the amount of funds that it could release by way of dividends or intercompany loans due to regulatory restrictions. These limitations caused the Company and its other subsidiaries to experience liquidity issues similar to FPFI.

The liquidity issues leading to the FPFI's bankruptcy filing and the subsequent lack of operations and sources of income of the Company required significant focus by senior management of the Company. Additionally, senior management concentrated on related strategic issues such as negotiating with lenders and creditors, finding new sources of financing, and reorganizing and recapitalizing the Company. The resources available to the Company have been limited by the liquidity issues and the downsizing of the Company and its operations.

Primarily due to lack of funds, the Company has for the most part been in a dormant capacity for the past several years. Since 1999, the Company has managed to avoid bankruptcy by negotiating with creditors



--------------------------------------------------------------------------------

and utilizing the anticipated but uncertain cash flow from an allowed unsecured claim against FPFI, more commonly known as the FPFG Intercompany Claim. As of December 31, 2005, the Company had approximately $1.3 million in cash and cash equivalents which management believes will be sufficient to cover operating expenses for the next twelve months. As of March 31, 2006, the trustee of the Creditor Trust has set aside approximately $12 million for the Grantor Trust, for which the Company is the sole beneficiary. The Company does not believe it will have to raise additional funds in the next twelve months.

The Company's management has withstood the pressure from creditors and avoided bankruptcy primarily by assigning portions of the FPFG Intercompany Claim to various creditors. However, the Company has maintained that one of its strategies has been to create value in the Company so that its prospects are enhanced for the future. The Company has been active in seeking a platform for operations and has pursued several opportunities; however, those opportunities were abandoned when the transactions did not meet the expectations of the Company after further examination and the Company learned of opposition to those transactions by certain shareholders.

Strategic Plan

Although the Company is not pursuing any specific opportunities at this time, it is reviewing the marketplace and its strategic plan. The areas for opportunity may include buying an existing company, merging with a growing concern or entering into a joint venture. In 2004, the Company received a substantial return on its investment in Capital Lending, a startup company which provides financial and risk services offering insured loan programs to financial institutions. In recent years, the financial services industry has seen substantial growth and the Company is confident that this trend will continue. The Company has engaged a consultant to assist in the development and implementation of its strategic plan. The Company offers strong leadership with the vision and passion needed to catapult the Company into any sector of the industry.

The Company has not identified a target business

To date, the Company has not selected any target business on which to concentrate its search for a business combination. Thus, there is no basis to evaluate the possible merits or risks of any target business or potential transaction into which the Company may enter. To the extent the Company enters into a transaction with a financially unstable company or an entity in its early stage of development or growth, including entities without established records of sales or earnings, the Company may be affected by numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. Although the Company's management will endeavor to evaluate the risks inherent in a particular target business, the Company cannot assure you that it will properly ascertain or assess all significant risk factors.

Sources of potential opportunities

The Company anticipates that business opportunities will be brought to its attention from various sources, including its network relationships, who may present solicited or unsolicited proposals. The Company's officers and directors as well as their affiliates may also bring transaction candidates to the Company's attention. While the Company does not presently anticipate engaging the services of professional firms that specialize in business acquisitions on any formal basis, the Company may engage these firms in the future, in which event the Company may pay a finder's fee or other compensation. In no event, however, will the Company pay any of its existing officers, directors or shareholders or any entity with which they are affiliated any finder's fee or other compensation for services rendered to it prior to or in connection with the consummation of a transaction.



--------------------------------------------------------------------------------

Selection of a potential business opportunity and structuring of a transaction

In evaluating a prospective business opportunity or transaction, the Company will consider, among other factors, the following:

• financial condition and results of operation;

• growth potential;

• experience and skill of management and availability of additional personnel;

• capital requirements;

• competitive position;

• stage of development of the products, processes or services;

• degree of current or potential market acceptance of the products, processes or services;

• proprietary features and degree of intellectual property or other protection of the products, processes or services;

• regulatory environment of the industry; and

• costs associated with effecting the business combination.

These criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular business opportunity or transaction will be based, to the extent relevant, on the above factors as well as other considerations deemed relevant by the Company's management in pursuing the business opportunity or transaction consistent with the Company's overall strategy. In evaluating a prospective business opportunity or transaction, the Company will conduct an extensive due diligence review which will encompass, among other things, meetings with incumbent management and inspection of facilities, as well as review of financial and other information which will be made available to the Company.

The fair market value of such business will be determined by the Company's Board of Directors based upon standards generally accepted by the financial community, such as actual and potential sales, earnings and cash flow and book value. If the Board of Directors is not able to independently determine that the target business has a sufficient fair market value, the Company will obtain an opinion or valuation from an unaffiliated, independent investment banking or business valuation firm with respect to the satisfaction of such criteria. For example, a valuation was obtained for the Company's proposed transaction with New Freedom Mortgage Corporation in 2001, although the transaction was not consummated, and the Company obtained a fairness opinion with respect to its initial equity investment in Capital Lending in 2002.

The time and costs required to select and evaluate a business opportunity and to structure and complete a transaction cannot presently be ascertained with any degree of certainty. Any costs incurred with respect to the identification and evaluation of a prospective business opportunity or transaction will result in a loss to the Company and reduce the amount of capital available to otherwise complete a business combination.

Probable lack of business diversification

While the Company may seek to pursue business opportunities with more than one target business, it is probable that the Company will have the ability to pursue only a single business opportunity or transaction. Accordingly, the prospects for the Company's success may be entirely dependent upon the future performance of a single business or investment. Unlike other entities that may have the resources to complete several transactions in multiple industries or multiple areas of a single industry, it is probable that the Company will not have the resources to diversify its operations or benefit from the possible spreading of risks or offsetting of losses. The Company's lack of diversification may:

• subject the Company to numerous economic, competitive and regulatory developments, any or all of which may have a substantial adverse impact upon the particular industry in which it may operate subsequent to a transaction, and



--------------------------------------------------------------------------------

• result in the Company's dependency upon the development or market acceptance of a single or limited number of products, processes or services.

Limited ability to evaluate the target business' management

Although the Company intends to closely scrutinize a prospective business opportunity or transaction, the Company cannot assure you that its assessment of the prospective business opportunity or transaction will prove to be correct. Furthermore, the future role of the Company's officers and directors, if any, in a prospective business opportunity or transaction cannot presently be stated with any certainty. While it is possible that one or more of the Company's current officers and directors will remain associated in some capacity with the Company following a prospective business opportunity or transaction, it is unlikely that any of them will devote their full efforts to the Company's affairs subsequent to prospective business opportunity or transaction. Moreover, the Company cannot assure you that its officers and directors will have significant experience or knowledge relating to the operations of the particular prospective business opportunity or transaction.

Following a transaction, the Company may seek to recruit additional executive officers or employees to supplement its current management. The Company cannot assure you that it will have the ability to recruit additional executive officers or employees, or that additional executive officers or employees will have the requisite skills, knowledge or experience necessary to enhance the Company's current management.

Competition

In identifying, evaluating and selecting a business opportunity, the Company expects to encounter intense competition from other entities having similar business objectives. Many of these entities are well established and have extensive experience identifying and effecting business opportunities directly or through affiliates. Many of these competitors possess greater technical, human and other resources than the Company and its financial resources will be relatively limited when contrasted with those of many of these competitors. While the Company believes there are numerous potential business opportunities or transactions that may be available to it, the Company's ability to compete in pursuing these opportunities or transactions will be limited by its available financial resources. This inherent competitive limitation gives others an advantage in pursuing these business opportunities or transactions.

Any of these obligations may place the Company at a competitive disadvantage in successfully pursuing a business opportunity or transaction. The Company believes, however, that its network relationships and the experience of its management team and Board of Directors may give it a competitive advantage over other competitors for pursuing business opportunities or transactions.

Financial Reporting Issues

Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

On June 3, 2005, the Company engaged Lightfoot Guest Moore & Co., PC, as its independent auditor for the year ending December 31, 2004. The Company had not formally had an independent auditor since September 1999, when Ernst & Young LLP resigned as the Company's principal accountant. The resignation of Ernst & Young LLP was discussed in a Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on October 6, 1999.

The Company disclosed the engagement of Lightfoot Guest Moore & Co., PC in a Current Report on Form 8-K filed with the SEC on September 22, 2005 (the "Form 8-K"), which included the following information:

On June 3, FirstPlus Financial Group, Inc. (the "Company") engaged Lightfoot Guest Moore & Co., PC as its new independent registered public accounting firm.

During the fiscal years ended December 31, 2004 and 2003 and through June 3, 2005, the Company had not consulted Lightfoot Guest Moore & Co., PC regarding either (i) the application of accounting principles to



--------------------------------------------------------------------------------

a specific completed or contemplated transaction, or the type of audit opinion that might be rendered on the Company's financial statements, and neither written nor oral advice was provided to the Company nor oral advice that was an important factor considered by the Company in reaching a decision as to the accounting, auditing or financial reporting issue; or (ii) any manner that was either the subject of a disagreement or event identified in response to paragraph (a)(1)(iv) of Item 304 of Regulation S-B.

Status of Financial Reporting

In January 1999, the Company announced that it would be implementing new accounting guidance regarding the valuation of its retained interests from securitization transactions which had been recently provided by the Financial Accounting Standards Board ("FASB"). FASB issued a draft Special Report ("A Guide to Implementation of Statement 125 on Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, Questions and Answers, Second Edition") which was finalized during December 1998. In this Special Report, FASB concluded that the "cash-out" method of valuing retained interests should be used to estimate fair value. The SEC Staff announced in December 1998 that the change to the "cash-out" method should be made by restatement. Based on this guidance, the Company decided to revise its methodology for estimating the fair value of certain financial instruments for each of the fiscal years in the three-year period ended September 30, 1997, the three-month transition period ended December 31, 1997, and the first three quarters of the fiscal year ended December 31, 1998. As the Company disclosed in its Form 10-Q for the quarter ended September 1998, it was expected that the impact would be material to the results of all prior periods.

As a result of limited resources and conflicting demands, the Company has not completed its analysis necessary to complete the restatement. In addition, the Company has not had the financial resources or personnel to prepare and file its periodic reports with the SEC. In July 2005, the Company received a letter from the SEC directing the Company to file all required reports or become subject to a revocation of registration under the Securities Exchange Act of 1934. In connection with the shareholders' meeting described under the heading "- Litigation - Special Meeting," the Company has obtained audited financial statements it believes to be sufficient to distribute a proxy statement and solicit proxies for the shareholders' meeting and election of directors. However, this information alone will not cure the Company's reporting delinquencies with the SEC. The Company has initiated discussions with the SEC regarding its compliance issues and has started the process to prepare its plan to correct any SEC reporting delinquencies.

Following the settlement of the Company's securities-related class action lawsuit in 2003, the Company began to analyze the extent of its liabilities and reporting compliance issues. In 2004, the Company received a small return on its investment in Capital Lending which allowed it to pay mounting debts and begin becoming compliant with its charter requirements in the State of Nevada. This also allowed the Company to organize its financial records in preparation for an audit of its financial statements for the year ended December 31, 2004, which is an expensive and time consuming process. Through changes in management and the nature of FPFI's bankruptcy and litigation filed against the Company, the business records have been scattered. As a result, gathering the necessary information to complete audited financial statements has taken more time than anticipated or would be required under other circumstances. The Company cannot currently estimate when it will complete the restatement or the delinquent reports for past time periods.

FPFX - The Firstplus Financial Shareholder Value Committee has filed a new proxy with the SEC which may be viewed at the pinksheets.com (search for fpfx and click on SEC filings) It refers to the upcoming special shareholder meeting ordered by Judge Peter Breen of Nevada where Firstplus is incorporated. The filing includes information about the reason for the meeting. It is my personal opinion that you will find the filing to be of interest to small shareholders everywhere. In the interest of full disclosure, I am a contributor to the FPFX Shareholder Value Committee and I am listed in at the end of the filing as such. I hold a position in the stock and from time to time I buy and sell the stock. You should not invest in FPFX on the basis of anything other than your own thorough investigation of this company.

New SEC filing by the Firstplus Shareholder value committee at the pinksheets site. Search for fpfx then click on SEC filings.

I took a small wild fling at Rushnet (RSHN) two weeks ago and I am up 544% to date. The volume for this sub penny is astronomical which is what caught my attention in the first place. Since it is a pink sheet stock, the profits could vanish in a New York minute, but it has been a one way ride up so far. I guess we both needed something besides watching the grass grow at EKCS.

Nice volume and price movement today. Hopefully, something positive is in the works.

New SEC filings for 3/23/06 and 3/24/2006 at pinksheets.com for fpfx. The meeting for election of BOD has been set by Nevada Judge Peter Breen for 4/28/2006.

CYOS bears watching today after 40% move yesterday and news today.

Flem
Keno.com to Add New IGaming Casino Style Games Licensed by CYOP Systems International Inc.; Over 35 Games Including Blackjack, Slots, Video Poker to Be Featured
3/23/2006

LOS ANGELES, Mar 23, 2006 (BUSINESS WIRE) --
Keno.com Ltd. (UK), a wholly owned subsidiary of Gaming Transactions Inc. (Pink Sheets:GGTS) and a leading provider of online gaming portal management, is pleased to announce that it has entered into an agreement with CYOP Systems International Inc. (OTCBB:CYOS) to provide Keno.com with online casino games.

In accordance with the agreements, CYOP will provide Keno.com with its software including a number of games, site integration, processing and customer support. Games will include Blackjack, American Roulette, Video Poker, Classic Slots, Craps and 35 other games.

Keno, the game, is one of the highest-grossing products for many North American public gaming corporations and continues to grow yearly. Easy to play, quick, and profitable, Keno has become a favorite to gamblers who want the excitement of a lottery draw without having to wait for a weekly offering.

Patrick Smyth, CEO of Gaming Transactions Inc., commented, "The US marketplace has adopted online gaming as a viable form of mainstream entertainment, and we intend to market our services by employing a number of aggressive tactics including online advertising, mainstream media, search engine optimization, keyword buys and email promotions. Keno.com has excellent brand potential and we intend to leverage the traffic into multiple products."

Mitch White, CEO of CYOP, stated, "It's great to have a site with the traction that Keno.com has as our first big licensee. And given the experience and perspective that the team at Gaming Transactions has with marketing and promotions, we expect that the site will acquire many new depositing players."

About Gaming Transactions

Gaming Transactions Inc. is a developer and provider of online games and services for the online entertainment and gaming industries. The Company's central licensed games portal, www.keno.com, is a destination online gambling property where players may participate in a number of gambling and online gaming fixtures.

Please visit www.gamingtransactions.com

The Game is Here.(TM)

About CYOP

CYOP is a provider of multimedia transactional technology solutions and services for the entertainment industry and a developer of IGaming software. The Company's range of products and services include financial transaction platforms for online video games, licensed online gaming software, gaming websites, poker portals and integrated e-commerce transaction technology for online merchants. Cross platform of brands include flash casino games, downloadable casino games, sports betting software and skill games.

For more information please visit www.cyopsystems.com.

his press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act of 1934 and the provisions of the Private Securities Litigation Reform Act of 1995 and is subject to safe harbor created by these sections. Actual results may differ materially due to a number of risks, including, but not limited to, technological and operational challenges, needs for additional capital, changes in consumer preferences, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on software providers, URL providers, risks relating to international operations, and risks associated with competition.

SOURCE: Gaming Transactions Inc.

Gaming Transactions Inc. Patrick Smyth, 310-376-3489 ir@gamingtransactions.com or CYOP Ray Irvine, 778-881-1372 ir@cyop.org

Copyright Business Wire 2006

© 2006 Stockgroup Media Inc. | Disclaimer

CYOS has more news today.

Keno.com to Add New IGaming Casino Style Games Licensed by CYOP Systems International Inc.; Over 35 Games Including Blackjack, Slots, Video Poker to Be Featured
3/23/2006

LOS ANGELES, Mar 23, 2006 (BUSINESS WIRE) --
Keno.com Ltd. (UK), a wholly owned subsidiary of Gaming Transactions Inc. (Pink Sheets:GGTS) and a leading provider of online gaming portal management, is pleased to announce that it has entered into an agreement with CYOP Systems International Inc. (OTCBB:CYOS) to provide Keno.com with online casino games.

In accordance with the agreements, CYOP will provide Keno.com with its software including a number of games, site integration, processing and customer support. Games will include Blackjack, American Roulette, Video Poker, Classic Slots, Craps and 35 other games.

Keno, the game, is one of the highest-grossing products for many North American public gaming corporations and continues to grow yearly. Easy to play, quick, and profitable, Keno has become a favorite to gamblers who want the excitement of a lottery draw without having to wait for a weekly offering.

Patrick Smyth, CEO of Gaming Transactions Inc., commented, "The US marketplace has adopted online gaming as a viable form of mainstream entertainment, and we intend to market our services by employing a number of aggressive tactics including online advertising, mainstream media, search engine optimization, keyword buys and email promotions. Keno.com has excellent brand potential and we intend to leverage the traffic into multiple products."

Mitch White, CEO of CYOP, stated, "It's great to have a site with the traction that Keno.com has as our first big licensee. And given the experience and perspective that the team at Gaming Transactions has with marketing and promotions, we expect that the site will acquire many new depositing players."

About Gaming Transactions

Gaming Transactions Inc. is a developer and provider of online games and services for the online entertainment and gaming industries. The Company's central licensed games portal, www.keno.com, is a destination online gambling property where players may participate in a number of gambling and online gaming fixtures.

Please visit www.gamingtransactions.com

The Game is Here.(TM)

About CYOP

CYOP is a provider of multimedia transactional technology solutions and services for the entertainment industry and a developer of IGaming software. The Company's range of products and services include financial transaction platforms for online video games, licensed online gaming software, gaming websites, poker portals and integrated e-commerce transaction technology for online merchants. Cross platform of brands include flash casino games, downloadable casino games, sports betting software and skill games.

For more information please visit www.cyopsystems.com.

his press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act of 1934 and the provisions of the Private Securities Litigation Reform Act of 1995 and is subject to safe harbor created by these sections. Actual results may differ materially due to a number of risks, including, but not limited to, technological and operational challenges, needs for additional capital, changes in consumer preferences, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on software providers, URL providers, risks relating to international operations, and risks associated with competition.

SOURCE: Gaming Transactions Inc.

Gaming Transactions Inc. Patrick Smyth, 310-376-3489 ir@gamingtransactions.com or CYOP Ray Irvine, 778-881-1372 ir@cyop.org

Copyright Business Wire 2006

© 2006 Stockgroup Media Inc. | Disclaimer

Although it is painful to suffer through these current low share prices, I think the company is moving in the right direction with this shifting of control away from our aging CEO. If we can show a profit this year and continued growth, the investment community should begin to take notice. Perhaps there will be news of new international contracts soon. I will continue to hold for the long term.

WWAT news this morning. Worldwater and Power Corp will debut the company's solar powered, portable water purification system at the National Hurricane Conference in Orlando, FL April 10th through the 14th. I hope FEMA plans to attend.

Flem


WorldWater & Power Corp. to Introduce New Mobile Solar Power Unit to Emergency Responders at National Hurricane Conference
Tuesday March 21, 7:03 am ET
MobileMaxPure Tows into Disaster Areas to Provide Portable Electricity, Water Purification, and Telecommunications


PENNINGTON, N.J., March 21, 2006 (PRIMEZONE) -- WorldWater & Power Corp. (OTC BB:WWAT.OB - News), developer and marketer of proprietary high-power solar systems, today announced that it will debut the company's new MobileMaxPure(tm) solar power unit at the 28th Annual National hurricane Conference to be held in Orlando, Florida, April 10 through 14.
The MobilMaxPure(tm) critical response unit can be towed into a disaster area by pickup truck or SUV and immediately provide emergency responders and victims with the essential services of power generation, water purification and satellite communications. With the flip of a switch, 15 solar panels automatically unfold to create a 12x18 foot photovoltaic array that generates electricity. A bank of high-capacity batteries power the panel deployment and store electricity for emergency night operations.

Quentin Kelly, Chairman of WorldWater & Power, noted, ``MobileMax(tm) has already proven its value in post-Katrina Waveland, Mississippi - where it is turning contaminated water into clean drinking water for 5,000 to 10,000 residents every day. The new MobileMaxPure is our second-generation device, incorporating everything required by emergency responders. During many disasters, reliable communications is one of the major problems faced in coordinating relief efforts. MobileMaxPure(tm) has solved that problem with on-board satellite-based, wireless voice and data telecommunications, and the power to operate it under the most severe field conditions. MobileMaxPure(tm) can rapidly go wherever needed and make the critical difference for people coping with disasters.''

MobileMaxPure(tm) can pump and purify up to 30,000 gallons of water a day, meeting World Health Organization requirements for drinking water while avoiding the typical logistical issues associated with trucking in bottled water, as experienced along the Gulf coast after Katrina. MobileMaxPure(tm) pumps from streams, ponds, lakes, or from contaminated public water systems, as is often the case after hurricanes; the water is purified through a three-stage filtration process using UV purification. At night, solar-generated electricity stored in the battery array can feed an available 5 horsepower generator to provide lighting and support other emergency operations.

About WorldWater & Power Corp.

WorldWater & Power Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world's electricity and water supply problems. For more information about WorldWater & Power Corp., visit the website at http://www.worldwater.com.

The WorldWater & Power Corporation logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1629



Contact:
WorldWater & Power Corp.
Jessie Sullivan
(609) 818-0700 X20
JSullivan@worldwater.com

Press Contact:
Mike Breslin Productions LLC
Mike Breslin
(201) 652-1287
mbrez@aol.com

Investor Contact:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening / Chris Witty
(212) 838-3777
cwitty@lhai.com


--------------------------------------------------------------------------------
Source: WorldWater & Power Corp.

WWAT (Worldwater and Power, Corp) news. If ever there was a timely product, surely this must be it!

WorldWater & Power Corp. to Introduce New Mobile Solar Power Unit to Emergency Responders at National Hurricane Conference
Tuesday March 21, 7:03 am ET
MobileMaxPure Tows into Disaster Areas to Provide Portable Electricity, Water Purification, and Telecommunications


PENNINGTON, N.J., March 21, 2006 (PRIMEZONE) -- WorldWater & Power Corp. (OTC BB:WWAT.OB - News), developer and marketer of proprietary high-power solar systems, today announced that it will debut the company's new MobileMaxPure(tm) solar power unit at the 28th Annual National hurricane Conference to be held in Orlando, Florida, April 10 through 14.
The MobilMaxPure(tm) critical response unit can be towed into a disaster area by pickup truck or SUV and immediately provide emergency responders and victims with the essential services of power generation, water purification and satellite communications. With the flip of a switch, 15 solar panels automatically unfold to create a 12x18 foot photovoltaic array that generates electricity. A bank of high-capacity batteries power the panel deployment and store electricity for emergency night operations.

Quentin Kelly, Chairman of WorldWater & Power, noted, ``MobileMax(tm) has already proven its value in post-Katrina Waveland, Mississippi - where it is turning contaminated water into clean drinking water for 5,000 to 10,000 residents every day. The new MobileMaxPure is our second-generation device, incorporating everything required by emergency responders. During many disasters, reliable communications is one of the major problems faced in coordinating relief efforts. MobileMaxPure(tm) has solved that problem with on-board satellite-based, wireless voice and data telecommunications, and the power to operate it under the most severe field conditions. MobileMaxPure(tm) can rapidly go wherever needed and make the critical difference for people coping with disasters.''

MobileMaxPure(tm) can pump and purify up to 30,000 gallons of water a day, meeting World Health Organization requirements for drinking water while avoiding the typical logistical issues associated with trucking in bottled water, as experienced along the Gulf coast after Katrina. MobileMaxPure(tm) pumps from streams, ponds, lakes, or from contaminated public water systems, as is often the case after hurricanes; the water is purified through a three-stage filtration process using UV purification. At night, solar-generated electricity stored in the battery array can feed an available 5 horsepower generator to provide lighting and support other emergency operations.

About WorldWater & Power Corp.

WorldWater & Power Corporation is a full-service, international solar electric engineering and water management company with unique, high-powered and patented solar technology that provides solutions to a broad spectrum of the world's electricity and water supply problems. For more information about WorldWater & Power Corp., visit the website at http://www.worldwater.com.

The WorldWater & Power Corporation logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1629



Contact:
WorldWater & Power Corp.
Jessie Sullivan
(609) 818-0700 X20
JSullivan@worldwater.com

Press Contact:
Mike Breslin Productions LLC
Mike Breslin
(201) 652-1287
mbrez@aol.com

Investor Contact:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening / Chris Witty
(212) 838-3777
cwitty@lhai.com


--------------------------------------------------------------------------------
Source: WorldWater & Power Corp.

I believe you are right and I am not selling any shares for now. I look forward to a very positive quarterly report with a clear path to profitability this year.

I have resisted the temptation so far, but I may try to pick up a few more shares below $1 ahead of the next quarterly report. I just wonder who is selling at this level and why.

FPFX (Firstplus Financial Group) has a new SEC filing available at the pinksheets.com website for 3/15/2006. Meeting for the election of a new BOD is set for April 28, 2006. A group of shareholders is attempting to replace the current board. I promise you will enjoy the read. Below is one of my previous posts about this company.


FPFX is one of the more interesting stories in micro cap investing right now. The story started in the late nineties when the major operating subsidiary of the company (fpfi) went into bankruptcy due to changes in the regulations about the way their loans had to be capitalized. The parent company, Firstplus Financial Group (fpfx) did NOT file bankruptcy and managed to get an unsecured claim against the former subsidiary for 50 million dollars! (with approximately 45 million shares outstanding and a current price of 0.15 you can see there is significant potential) The subsequent maneuvering by fpfx reads like a cheap novel,but the most important part is that the claim will be paid in part or in full and that is a verifiable fact. Now a group of shareholders, who may hold a majority of the outstanding shares, is attempting get control of fpfx at a court ordered shareholders meeting in Reno, Nevada on November 16, 2005. You can read the recent SEC filings by fpfx on the "pink sheets" website for details. The trustee for the bankrupt subsidiary (fpfi) already has over 7 million dollars of the 50 million dollar unsecured claim ready to transfer to fpfx when certain issues about just who is in charge are resolved. You certainly don't want to miss this one. Go to the fpfx board here on Raging Bull and read some of the older posts for intriguing details. Any skeptics can go to www.fpficreditorstrust.com and look at the most recent distributions (bottom of the page)to the class 4 unsecured creditors. You will see the FirstPlus Financial Group allowed claim is there and waiting to be distributed. You may also want to go to the company website at www.firstplusgroup.com for the company side of the issues. If nothing else, you will enjoy the read.

New SEC filing 3/15/2006. Go to pink sheets site for full filing.

PROXY STATEMENT FOR SPECIAL MEETING OF SHAREHOLDERS

To Be Held April 28, 2006



FIRSTPLUS FINANCIAL GROUP, INC.

5100 N. O’Connor Boulevard, 6th Floor

Irving, Texas 75039





SPECIAL MEETING INFORMATION



The Board of Directors of FIRSTPLUS Financial Group, Inc. (the “Company”) is soliciting proxies for its Special Meeting of Shareholders. The Special Meeting of Shareholders will be held at Peppermill Hotel Casino, 2707 South Virginia Street, Reno, Nevada 89502, at 10:00 a.m., Friday, April 28, 2006. This proxy statement contains important information for you to consider when deciding how to vote on the matters brought before the meeting. Please read it carefully.



The Board set March 31, 2006, as the record date for the meeting. Shareholders who owned Company common stock on that date are entitled to vote at the meeting, with each share entitled to one vote. There were 45,340,090 shares of Company common stock outstanding on the record date.



Special Meeting materials, which include this proxy statement, a White Proxy Card or voting instruction form, and the 2005 Annual Report, are being mailed to shareholders on or about ________, 2006. The Company’s Annual Report for the year ended December 31, 2005 does not form any part of the materials for solicitation of proxies.

RSHN (Rushnet, Inc) was #3 on the pink sheets share volume list for Monday (402 million shares) and that represented almost one million dollars for this micro cap!

RSHN (Rushnet, Inc) was number 3 on the pink sheets share volume list for Monday at 402 million shares and that represented almost a million dollars for this tiny little company! The product is compelling, the execution of a plan to get to market seems feasible and the financing is in apparently in place. Now the question is whether or not the management has the integrity to do right by shareholders who want to invest.

Flem

RSHN (Rushnet, Inc) was #4 on the pinksheets domestic company share volume list for Friday 3/10/06 and today it may go even higher on the list. I would guess we will see some profit taking for a few hours today since we went from .0010 to .0026 in less than 3 trading days. I am looking for another entry point below .002 before the next big run which could be today. This is a pink sheet company however, so anything is possible. Cautious investing is highly recommended.

Flem

I was fortunate enough to get in last week before the news on Friday. I just hope the management of this pink sheet company will use the current investor interest to execute on this exciting plan and not just pour more shares into the float for short-sighted personal gain. What a story this could be if they would commit to becoming a fully reporting company!

Flem

RSHN (Rushnet, Inc) looks to be building momentum after the news on Friday of an agreement with the investment group, Lynch Partnership One. Rushnet appears to own the rights to some interesting beverages which the company says it intends to aggressively market here and abroad. The partnership with the Lynch group may well allow Rushnet to execute that plan. Of course, this is a very tentative pink sheet company and the risk is very high, but the story is compelling at this point. RSHN was #4 on the pinksheet domestic company share volume list for Friday with over 335 million shares traded. The news release follows below.

RushNet, Inc. a Major Beneficiary of Proposed Brewery Deal Significant Increase in Licensed Product Base Anticipated

BLUE ISLAND, Ill., Mar 10, 2006 (BUSINESS WIRE) -- RushNet, Inc. (Pink Sheets:RSHN) announces that Robert J. Corr and investment group Lynch Partnership One, led by well-known entrepreneur Michael Lynch, have agreed to proceed with the private acquisition of a regional Midwest brewery.
Robert J. Corr is president of RushNet, Inc. (a public company) and privately held Rush Beverage Company. He has many years of experience in the beer business.

The company stated that, upon completion of this purchase by the two parties, RushNet, Inc. will be appointed as exclusive, royalty-based marketing agent for the brewery's existing branded products along with new beverage items to come. Sales at the brewery exceeded $1,000,000 in 2005 and were up 40% in first two months of 2006 compared to the same period last year.

The Brewery

The brewery, one of America's oldest, has been family owned and operated for over 100 years. It brews and produces its own branded line of alcoholic and malt beverages, gourmet sodas and does private label work with these products.

Lynch Group

Chicago native Michael Lynch leads Lynch Partnership One, an investment entity. Mr. Lynch is the former chairman of a multi-billion dollar aluminum business, which attempted a take-over of giant Reynolds Metals Inc. in the late 1990's. More recently, Michael Lynch has made substantial investments in composite technologies and plastics. Perceiving undervalued opportunities presented by the natural/organic food and beverage category, Mr. Lynch is also moving into this sector aggressively.

Adding Licensed Products

"RushNet is a major beneficiary of this acquisition said Robert Corr, president of RushNet, Inc. After the Lynch Group and I purchase the brewery, the RushNet stable of marketed licensed products will expand instantly to include their existing branded items. Furthermore, the brewery, under new ownership, will introduce a line-up of innovative all-natural beverages such as fresh-brewed flavored teas and lightly carbonated 100% juice drinks; apple, black cherry, raspberry, blueberry and others. Apple Rush(TM) will be our first 2006 entrant in this category."

Corr added, "The ownership group will install a modern "flash" pasteurization unit at the brewery to ensure integrity of the all-natural ingredients without using preservatives. The juice products will be attractively packaged in glass bottles."

Company Growth

"The brewery alliance, by providing RushNet with a constant stream of innovative quality beverages, can transform our company into a full-fledged beverage marketing firm representing multi-level brands of brewed, carbonated and still beverages," Corr added.

In a further statement, Robert Corr thanked his loyal shareholders for their steadfast support and invaluable suggestions.

www.enjoytherush.com

Disclaimer: The Company relies upon Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.

SOURCE: RushNet, Inc.



CONTACT: RushNet, Inc.
Robert Corr, 708-389-6625

RSHN news Friday of an agreement with Lynch Partnership One to buy a brewery with Rushnet handling the marketing of products seems to have a lot of investors excited. Volume on Friday was over 335 million shares and today may be even higher. Do the proper DD, of course. Here is news from Friday.


RushNet, Inc. a Major Beneficiary of Proposed Brewery Deal Significant Increase in Licensed Product Base Anticipated

BLUE ISLAND, Ill., Mar 10, 2006 (BUSINESS WIRE) -- RushNet, Inc. (Pink Sheets:RSHN) announces that Robert J. Corr and investment group Lynch Partnership One, led by well-known entrepreneur Michael Lynch, have agreed to proceed with the private acquisition of a regional Midwest brewery.
Robert J. Corr is president of RushNet, Inc. (a public company) and privately held Rush Beverage Company. He has many years of experience in the beer business.

The company stated that, upon completion of this purchase by the two parties, RushNet, Inc. will be appointed as exclusive, royalty-based marketing agent for the brewery's existing branded products along with new beverage items to come. Sales at the brewery exceeded $1,000,000 in 2005 and were up 40% in first two months of 2006 compared to the same period last year.

The Brewery

The brewery, one of America's oldest, has been family owned and operated for over 100 years. It brews and produces its own branded line of alcoholic and malt beverages, gourmet sodas and does private label work with these products.

Lynch Group

Chicago native Michael Lynch leads Lynch Partnership One, an investment entity. Mr. Lynch is the former chairman of a multi-billion dollar aluminum business, which attempted a take-over of giant Reynolds Metals Inc. in the late 1990's. More recently, Michael Lynch has made substantial investments in composite technologies and plastics. Perceiving undervalued opportunities presented by the natural/organic food and beverage category, Mr. Lynch is also moving into this sector aggressively.

Adding Licensed Products

"RushNet is a major beneficiary of this acquisition said Robert Corr, president of RushNet, Inc. After the Lynch Group and I purchase the brewery, the RushNet stable of marketed licensed products will expand instantly to include their existing branded items. Furthermore, the brewery, under new ownership, will introduce a line-up of innovative all-natural beverages such as fresh-brewed flavored teas and lightly carbonated 100% juice drinks; apple, black cherry, raspberry, blueberry and others. Apple Rush(TM) will be our first 2006 entrant in this category."

Corr added, "The ownership group will install a modern "flash" pasteurization unit at the brewery to ensure integrity of the all-natural ingredients without using preservatives. The juice products will be attractively packaged in glass bottles."

Company Growth

"The brewery alliance, by providing RushNet with a constant stream of innovative quality beverages, can transform our company into a full-fledged beverage marketing firm representing multi-level brands of brewed, carbonated and still beverages," Corr added.

In a further statement, Robert Corr thanked his loyal shareholders for their steadfast support and invaluable suggestions.

www.enjoytherush.com

Disclaimer: The Company relies upon Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.

SOURCE: RushNet, Inc.



CONTACT: RushNet, Inc.
Robert Corr, 708-389-6625

Does anyone here have any insight concerning the departure of Cameron King?

OTHER COMPANY NEWS

Quest announced today that Mr. Cameron King has tendered his resignation as President and Chief Executive Officer of the Company, effective February 24, 2006. Quest is proud to announce that Chief Operating Officer, Mr. William Stinson will assume the role of President and CEO. Mr. Stinson brings over 28 years experience in the oil and gas industry, with both technical and management experience. Mr. Stinson advises, ``On behalf of the board, I would like to thank and commend Mr. King for all his hard work and efforts in establishing the company in its early stages. I look forward to moving ahead as President and CEO and will continue the company's vision of being a major force in the oil and gas sector.''

Mick, I am a pharmacist and I can say without hesitation that Tarvacin has exciting potential and if the drug trials prove it works as hoped, the growth in this company could be explosive.

We seem to be in a very quiet period with respect to any news about our little company. Perhaps they are working so hard on becoming profitable that they have no time left for updating investors.