Simulated Environment Concepts Inc (SMEV)

[Son of Jr]

I spoke with Allen Licht, Managing Director today. He indicated that all is fine with the company and that they are not concerned with the direction of the stock price at this time as they have not and will not issue any PR's for the sole purpose of raising the price. He said they have not sold or traded any company shares since taking ownership of the Shell that was 5th Ave Channel and stressed that there has been no impropriety on their part. I did learn that Jim Pugh, the previous CEO of FAVE is a director and consultant with SMEV.

Although he did take the time to speak with me directly, he would like any questions to be directed thru audiostocks.com. They do answer their phones at the Miami office of SMEV. Mr. Licht said that they are working hard to make this product a success and have not told anyone to buy it or sell it. Also, he mentioned that the float is very low and did not say but kind of insinuated that this was probably the reason for the dismal stock price we are seeing.

I am not happy with the stock price myself but am purchasing more stock at these low levels to cost average down once again. I do not blame anyone to who has bailed. The price would indicate a company in distress but I do not see that in the DD I have done. Still, I have not ascertained where the 8.5 billion shares came from but will advise when I know.