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Wednesday, 09/24/2003 7:35:15 AM

Wednesday, September 24, 2003 7:35:15 AM

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SPECIAL SITUATION ALERT
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Icoworks (OTC BB: ICOW)
Last sale: 45.5 cents


As recent press releases (links below) demonstrate, ICOWORKS (OTC BB: ICOW) is expanding fast. After only a few months, ICOW already appears to have a current run rate of about $40 - $50 million a year in sales, yet (based on its 12.89 million shares outstanding as at 6/13/03) the company still has a market capitalization of just $5.9 million.

Having reached a critical mass of operations, ICOW has embarked on an aggressive expansion strategy both in terms of organic growth and through acquisition. This highly fragmented, largely regional market structure is ripe for an industry consolidation and purchase prices for private companies are relatively low. There is high potential to capture significant "value gaps" between the valuation of private auction companies and valuations in the publicly traded companies. The market tends to view this sector favourably, based on the 4.5 to 7.5 price/sales multiples attributed to the few publicly traded auction companies identified (Ritchie Brothers, Fairmarket, AbleAuctions).

Should ICOW just maintain this pace to date, there could be rather significant potential for shareholders, with considerable additional upside from many very attainable acquisitions. Given the nature of trading in this sector, rapid increases in shareholder value are possible. ICOW itself is projecting net income before taxes of over $5.7 million next year.

Recent News

September 17 Icoworks President to be interviewed by the Economic Contrarian
http://biz.yahoo.com/prnews/030917/va269_1.html

September 16 Icoworks announces USD $2 million bought deal fund
http://biz.yahoo.com/prnews/030916/va268_1.html

September 9 Icoworks to acquire the business of Santiago Sports & Classics Collector Car Auctions
http://biz.yahoo.com/prnews/030909/va231_1.html

September 3 Icoworks acquires Premier Auctioneers International Inc.
http://biz.yahoo.com/prnews/030903/va209_1.html

August 26 Icoworks hosts semi-annual 'Wheels and Dreams' vintage and collector car auction and charity event
http://biz.yahoo.com/prnews/030826/va194_1.html

August 21 Howlett Research Corp. Publishes Research Report on Icoworks Inc.
http://biz.yahoo.com/pz/030821/44159.html

August 20 Icoworks announces private placement
http://biz.yahoo.com/prnews/030820/va181_1.html

August 18 Icoworks to conduct one-day, unreserved, public auction of Dexter-Lawson Manufacturing Inc.'s assets
http://biz.yahoo.com/prnews/030818/va169_1.html

August 14 Icoworks Inc. to liquidate Chem-Etch & Stamp of Canada Ltd.'s inventory
http://biz.yahoo.com/prnews/030814/va156_1.html

August 11 Icoworks to conduct one-day, unreserved sawmill auction for H.T.M. Industries Inc. utilizing company's bought deal fund
http://biz.yahoo.com/prnews/030811/va133_1.html

July 31 Icoworks to conduct one-day, unreserved sawmill equipment auction for M & T Wood Products Ltd.
http://biz.yahoo.com/prnews/030731/va108_1.html

July 29 Icoworks to conduct one-day, unreserved sand and gravel equipment auction for Anderson Sand and Gravel Ltd.
http://biz.yahoo.com/prnews/030729/va091_1.html

July 25 Icoworks announces legal action against Premier Auctioneers International Inc. and Network International, Inc.
http://biz.yahoo.com/prnews/030725/va082_1.html

July 16 Icoworks announces letter agreement to acquire Premier Auctioneers International Ltd.
http://biz.yahoo.com/prnews/030716/va035_1.html

July 10 Icoworks approved for trading on the Frankfurt Stock Exchange
http://biz.yahoo.com/prnews/030710/va013_1.html

June 30 Icoworks announces completion of additional $1 million USD financing
http://biz.yahoo.com/prnews/030630/va267_1.html



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