Prime Rate Investors Inc. (fka PRRM)

[100lbStriper]

PRRM email response,
I could of done a much better job on writing this out pertaining to the aquisition but I was pretty wacked from lack of sleep when I transcribed it. Oh well, nevertheless Ian figured it out for me and sent his response.

-----Original Message-----
From
Sent: Friday, October 01, 2004 8:03 AM
To: Ian Lamphere
Subject: Re: PRRM.........

Good morning Mr. Lamphere,
Thank you for returning my prior email in a very timely fashion.
I was wondering if you could shine a bit more light on the subject of the LOI involving High Angle Media. After doing some research I see that the same people involved with PRRM are basically the same people running High Angle Media. Please correct me if I am wrong.
What I am trying to get at here is, what is the justification in aquiring something that you allready have total access too ? My assumption that PRRM has total access to High Angle Media stems from reading their website. The reason for my question is, why create the expense to PRRM or it's shareholders if it is not nescessary.
I must say I am confused by this LOI. On one hand I understand why PRRM would want to aquire High Angle and on the other I wonder why, if they may utilize it at will. Which brings me to another thought, wouldn't it be easier and more cost efficient to just have High Angle merge into PRRM ? I am more than likely way off base with my thinking or interpretation of this LOI and would deeply appreciate it if you could clear my thoughts on it.
Thank you for your time and I anxiously await your response,


xxxx,
Cost effective mergers and acquisitions beginning with associated companies will increase the revenue and share value of Prime Rate Investors. Having access to High Angle Media resources is different than acquiring High Angle Media as a wholly-owned subsidiary.
While management may participate in both companies, they exist separately with differences ranging from ownership to employees. Furthermore, we are looking at other acquisitions of multi-media companies which will allow us to leverage our shared customer bases and human resources.
We are profiling the contributions of candidate companies. Ideal M&A targets have positive cash flow, established customer base, and human resources that parallel our aggressive growth strategy in our industry.
Thank you for your patience,
Ian Lamphere
Vice President
PRRM
Stowe TV-10
145 S. Main St.
Stowe, VT 05672
[phone]
[e-mail]