Newsletter

April 9 2003

Volume VI, Issue 33

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

SHEP Technologies, Inc (OTC BB: STLOF)- Announces Financing Closed

In our February 21st edition we introduced members to SHEP Technologies, a company which has developed a revolutionary method for capturing the kinetic energy lost in the vehicle braking process.

In a joint development program with SHEP, and after two years of experimentation using a "proof of concept" Lincoln Navigator, OEM Ford Motor and Tier I supplier Eaton Corp determined the SHEP system (stored hydraulic energy propulsion) was able create:

38% improvement in fuel economy.
32% faster acceleration from a stop.
51% less pollution.
77% longer brake life.

When one considers the long term commercial applications for this technology, combined with the profit model for licensing its use in the automotive manufacturing world, there is incalculable upside potential.

Therefore, we felt any investor with capital for a high risk/high reward situation should own shares in SHEP Technologies.

As we pointed out in our original presentation, one of the risk factors in owning this stock was limited capital. Ford and Eaton invested for much of the development to this point. SHEP requires little capital to operate.

In a press release issued today, SHEP disclosed it has received its first injection of capital since becoming a public company in 2002. The company received an equity investment of $500,000. In return, SHEP issued units containing one share of common stock and one-half warrant convertible at $1.25 for $.85 per unit. Therefore, the investor has a cost basis of $.85 (about 15% below the market). The warrants will have no value unless the shares appreciate about 25%.

This is very important step for shareholders because it reduces the risk of owning the stock considerably and allows the company to move forward on several pending projects. Also consider- if one investor is willing to purchase $1/2 million worth at $.85- how much are you willing to own at about $1?

Invest in SHEP Technologies if you are interested in a stock that could see $10 or $20 in one to two years. A deployment of this technology from Ford or any other major vehicle manufacturer could send the stock rocketing up the charts. As disclosed in a previous press release, the company is in active discussions with several major European manufacturers, and one European transit authority.

If you don't own shares in SHEP Technologies, and are considering doing so, now would be a good time to review our original presentation. Simply Click here.

Members Forum- More Commentary on SHEP Technologies

I've been following Shep Technologies with great interest since you first profiled it.

I have been surprised to see the share price decrease dramatically since then on increasing volume. It closed 17% down on heavy volume today, falling under 1$ (on 4/3). There have been no press releases. Do you have any ideas why this is happening, and is an entry point near?
Thanks
Robert W

OTC Journal: Robert- thanks for your question. As we stated in the original presentation, we had no idea whether the stock would be $.10 or $10 in a year, which was our way of discouraging participation from investors with a trading mentality.

The stock is trading very strong volume- 6.7 million shares traded just in the month of March, so there is significant investor interest. This stock will probably trade up on positive fundamental developments, and drift down between events. In the meantime, you never know when a major event might occur, so there is risk in not owning it.

For the time being the stock seems to have a floor of $1, so if you don't own any shares in SHEP now seems like a good time to participate, especially in light of the funding announcement which reduces the risk.

Also- in response to the many emails we received on the Toyota Prius and other gas/electric hybrid vehicles- The SHEP systems seems to provide the most benefit for any mode of transportation with a lot of starts and stops, as the energy is captured in the braking cycle. Therefore, we anticipate the first SHEP systems will be deployed on fleet delivery vehicles- i.e. FEDX, UPS, Postal Trucks, Garbage trucks, etc. The gas/electric hybrid vehicles are mostly designed for economy and to mitigate pollution for commuter type vehicles. The SHEP system provides these benefits, but also reduces maintenance costs considerably. The SHEP system could also be included on gas/electric vehicle, as it applies to any mode of transportation which needs to brake. Therefore, SHEP could end up on anything but boats and planes.

Charts Provided Courtesy Of TradePortal.com

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