Paychest Inc (PYCT)

[poopscooper]

Business activities with Shazil, relating to the distribution agreement, are currently dormant. Although the agreement is still in effect, the Company has not received any subsequent orders from Shazil, nor does it expect to receive any additional orders in the immediate future. The Company and Shazil have not discussed additional orders in 2004 as the Company has focused its attention on the North American market.