Newsletter

December 16, 2003

Volume VI, Issue 126

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To OTC Journal Members:

Special Announcement- Don't Be Fooled by the Fake OTC Journal

This has happened in the past, and will no doubt happen again in the future. Someone is publishing a fake version of the OTC Journal and spamming it all over the Internet.

They're calling it the "OTC Newsletter", and it looks exactly like the OTC Journal. They are touting some piece of garbage which trades under the symbol "TMLL". If you like to short microcaps, this could be a good one. Avoid the stock, and don't be fooled by the imitation if it appears in your inbox.

Christmas Arrives Early for Followers of VirTra Systems (OTC BB: VTSI)

I love it when Santa arrives early. If you are following one of my favorite ideas and biggest wins of 2003- VirTra Systems- Santa just came sliding down your chimney and put a special present in your stocking.

If you're a fan of VirTra Systems as I am, and you haven't spent all your money on Christmas presents, now would be an excellent time to add to your position or establish a new one.

Your present from Santa is a pullback in the stock for no apparent reason. The stock has made a great four fold move this year. The company has announced numerous new contracts in its revolutionary new "Judgemental-Use-Of-Force" Training Simulators. It has also announced several new contracts in the corporate promotion side of its business. In all, I felt the stock movement correctly reflected the accomplishments of the company.

The stock has recently been parked in the $.35 range, digesting the gains of the last four months and waiting for a signal from the company it may be time to go to the next level. Announcements of multi unit sales to worldwide governmental agencies should propel this one to higher levels. In the interim, this stock wants to be in the $.35 to $.40 range.

I noted from reading current press releases today that VirTra had recently been awarded a "Speculative Buy" recommendation from independent analyst firm Investrend, with a 12 to 18 month price target of $.75. Click Here to read the press release.

Lest you should be unclear about this, the OTC Journal is not unbiased research as Investrend purports to be. I am completely biased, and believe the company has a real shot of growing very significantly in 2004.

As you can see from this chart, shares of VirTra Systems dropped today. I know of no reason for the drop, other than the seasonal weakness associated with this time of the year. Individual investors are out Christmas shopping and attending parties. Light volume can result in exaggerated moves in stock prices you might not see at other times of the year. When small stocks give ground on light volume in December, they usually regain it in January.

I feel this move to the downside is a gift from Santa if you like the stock. As I write today's edition, the stock is rebounding back up to the $.30 level. It has now completed a nearly perfect 50% retracement of it's big move over the last four months, providing a "Santa like" entry level.

Today, just after the market closed, VirTra announced it had retired some convertible debt. This is also a positive for shareholders, as the retirement of the debt by repayment means there will be less dilution in the stock.

Investrend thinks the stock could go to $.75 next year. I believe the stock could go to $1 if they execute on several of the multi unit contracts they have in the pipeline. In either case, today's closing price is a Christmas present for those looking to accumulate.

Here is the complete text of today's news release for your review:

Press Release Source: VirTra Systems, Inc.

VirTra Systems Retires Debenture

Tuesday December 16, 4:02 pm ET

ARLINGTON, Texas, Dec. 16 /PRNewswire-FirstCall/ -- VirTra Systems, Inc. (OTC Bulletin Board: VTSI - News) today announced that the company last week fully retired its debenture obligation with Dutchess Private Equities Fund, L.P., of Boston, Massachusetts.

The financing arrangement, announced in July of 2002, totaled $5.45 million, in the form of a $450,000 convertible debenture and a $5 million equity line. Under the terms of the equity line, VirTra Systems, at its discretion, has the option, but no obligation, to require Dutchess to purchase up to $5,000,000 of common stock from the company from time-to-time in amounts determined by the company.

"We are naturally pleased to announce retirement of this obligation on the heels of our fourth consecutive quarter of improving financials," commented L. Kelly Jones, VirTra Systems' chief executive officer. "This is another milestone in our trek toward corporate profitability and solid shareholder value."

About VirTra Systems

VirTra Systems produces turnkey immersive virtual reality(TM) systems which utilize 360-degree, interactive photorealistic environments. The company's products incorporate the sensations of motion, touch, sound, and smell into promotional experiences for clients such as Buick, Chevrolet, Pennzoil, Red Baron(TM) Pizza, and the US Army. VirTra Systems also produces advanced training systems utilizing situational awareness and judgmental use-of-force scenarios for security and law enforcement agencies. To find out more, visit the corporate website at www.virtrasystems.com , or the training/simulation website at www.virtratraining.com .

This press release contains certain forward-looking statements. Forward- looking statements are generally preceded by the words such as "plans," "expects," "believes," "anticipates," or "intends." Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. VirTra Systems urges investors to review in detail the risks and uncertainties contained within its filings with the Securities and Exchange Commission.

For further information please contact: Mike Hiles, principal, MPH, +1-310-234-3200, mhiles@mphpr.com, for VirTra Systems, Inc.

--------------------------------------------------------------------------------
Source: VirTra Systems, Inc.

Charts Provided Courtesy Of TradePortal.com

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