Capstone Companies Inc (CAPC)

[RG]

*IMPORTANT* A response has been received from the Company and here it is. I hope all will read it. I did Bold a couple of comments as you will see.

We have not been discontinued from Target. The markdown clearance items which are seen in retail is a consideration that is jointly decided by Capstone and Target, and built into the program as a method of managing program inventories. The program consists of two different retail sets. These sets are determined by Target and governed by Seasonal rates of sale. The full endcap program is planned for 7 months, then followed by a reduced program of top-selling items for 5 months. It is important to know that 2011 was the first time Target decided to merchandise booklights year-round, and they selected Capstone as the vendor.



On an additional note: Management wanted to acknowledge your concerns regarding PR. As Mr. Wallach and Mr. McClinton have just returned from China, Kei Advisors is visiting Headquarters this week to initiate their processes and assume full responsibility for investor relations. As always, any shareholder concerns can be addressed to us directly.