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TRCPA

07/31/11 6:02 PM

#33418 RE: icarus6700 #33416

icarus.....yes, the upfront deposit amounts received appear to generally be used to cover the manufacturing costs of the KDS, so the balance due approximates the gross margins on sale.

There are a few older model KDS out there that have been refurbished and saleable for prices of less than $300K.

As for current KDS sales prices, there was a fairly recent poster who was interested in KDS who received quote prices from FASC starting at $300K and up for new models. Otherwise, the company has not published their own prices publicly. The past sales price history can otherwise be found on prior SEC quarterly reports.

Manufacturing costs have run in the neighborhood of 50% or lower as noted above. Not sure about the current models, but my belief is that with more manufacturing, these costs will come down somewhat.