Cal-Bay International Inc (CBYI)

[USF11]

I found this on another board.

Email Answer from Investor Relations

I sent an email to IR to get a read on the share count and it appears 245M is common and in addition there are the Pref shares for a total of 383.8M (500M is there max limit, so not much more they can do to dilute this, if they even will). Email is below with their answer (didn't answer the last question, so replied asking for more today. We'll see):

A. The Preferred shares are in addition to the 245 million and if you look at the date in the 13G it was back in October.

----- Original Message -----
From: XXXXXXX
To: [e-mail]
Sent: Monday, February 19, 2007 11:46 AM
Subject: Question


Q. I'm an investor and I listened to Pawson's CC on Friday and was confused by something. He reported 246M shares of common. He also reported 22M of Pref A, 116M of Pref B, and 261K of Pref C. My first question is whether the preferred stocks are counted as part of the 246M or in addition to them.

Regardless of the answer to that question, the was a 13G filed on 2/13/07 just a week before for reporting ownership by Golden Gate Investors for about 4.1M - that they were reporting as > 5% stake in the class called "common" shares. The report listed them for 9.99% of the common, which if you do the math means there must only be only 41M common shares (not 246M or about 107M if that includes the preferred number). How is this explained? There are a number of us that have been confused by this.

When you complete your 10Q for 2006 and we get it in Mar 07, what will be the number of shares used to calculate diluted EPS?

Thanks in advance for your assistance.


XXXXX