As noted in the Company's Report on Form 10-K filed on January 29, 2006, and as required under applicable NASDAQ rules, the Company notes that its financial statements for the fiscal year ended October 31, 2006 contain a going concern modification from its independent accounting firm, Goldstein Golub Kessler LLP.

Further information regarding the going concern modification can be found in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on January 29, 2006.