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tonyvanw

10/25/08 5:25 PM

#169 RE: aml10021 #168

This deal will result in buyout of ACUS by CEPH.

The deal itself does not seem unreasonable given the financial position that ACUS was in and the financial crisis swirling around the market. The alternative would have required ACUS to do a pipe at a discount to the current market price and subsequent depressing effect on the share price and this assumes that a pipe is actually doable.

This deal has provided ACUS with a financial lifline and credibility to the product. CEPH has a reputation for buying out partners and that is what I expect to happen at some point in the future.