The Company, which sought but did not receive the return of certain property from Mr. Chesney and Ms. Radosevich as part of the mediation agreement, has decided not to appeal the ruling to the Minnesota State Supreme Court. If Mr. Chesney and Ms. Radosevich were to quickly liquidate the shares issued to them in the settlement, these sales would likely have an adverse effect on the price of the Company’s common stock, which might impact the Company’s ability to raise equity capital in the future. Attempts made by the Company to negotiate a cash settlement in lieu of the 714,286 shares have been unsuccessful.

Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company’s 2004 Annual Report on Form 10-KSB, and subsequent Quarterly Reports on Form 10-QSB, all of which were filed with the U.S. Securities and Exchange Commission, as well as others not now anticipated.

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