First American Scientific Corp. (fka FASC)

[Fasctrack]

Waite,

IMHO, with 200,000,000 shares o/s, I think an acquisition of FASC would simply be too expensive for QL hence the JV relationship. I did notice that QL has made a few acquisitions recently that involved minority interests (approx. 41% in one case and approx. 23% in another case). I believe in those instances that the acquisitions involved stock not cash. From FASC's view, it would seem that selling a minority interest would be more palatable if FASC were to receive a large cash capital infusion. It would seem to me that FASC would much more desire cash for growth and expansion. Again, IMHO, even a minority stake is probably too expensive for QL. Although they do have roughly $40 million in cash. Even so, I am not sure what they would get from a minority position that they can't get as a partner in the JV.