First American Scientific Corp. (fka FASC)

[All City Baby]

Results of Operations - Year ending June 30, 2007

Revenue for the year ending June 30, 2007 was $323,560 compared to $724,706 for last year. This represents the sale of two systems completed for the year. In addition, in June we sold one machine which is now being fabricated, and a second which is being held in inventory pending receipt of final payment. A third sale was made in August 2007, subsequent to the date of these statements. These sales will be booked when delivered as per our revenue recognition policy. We have received deposits on all three of these sales.