Stonegate Securities

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Stonegate Securities

• Founded 1972
• Small Cap Equities
• - Public Companies (market caps of 25M-500M)
• Institutional Quality Research
• Providing Quick Efficient Access to Capital
• - Direct Placements
• - Registered Directs
• - Insider Blocks
• - Debt Financings

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Equity Research

• Coverage on 20 to 30 companies
• Focused on high-growth industries
• Valuable platform to communicate
  the story to the street
• 12-20 pages in length
• updated quarterly
• Research submitted to
• Bloomberg Thompson
• Reuters Zacks
• Distributed to small cap institutional investors

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Sales and Trading

• Team oriented approach
• 6 Sales representatives maintain daily dialog
  with premier small cap investors
• Over 2000 institutional relationships
• We know each funds investment parameters and
  decision process
• Provide non-deal road shows with quality funds
• Can facilitate market making through clearing firm

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Stonegate is a Leader in Private Placements

• Over 50 transactions since 1999
• Raised over 500 million in equity
• Since 1999 Stonegate performance
• Top 1 for sub 50 million market caps
• Top 2 for 50 to 100 million market caps
• Top 5 Overall
• Strong pre and post transaction market
  performance
• Since 1/04, Stonegate has completed 26
  transactions
• 110 million average market cap
• 11 million average offering size

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Previous Stonegate Transactions
1999-2004
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Year to Date PIPE Market

• 23 billion raised
• 1,017 transactions
• 200 active participants
• 400 inactive participants

Source PlacementTracker
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American Vanguard (NYSE AVD)

• Stonegate initiated research
• 375 million market cap
• Filed 50m shelf registration
• Targeted 120 mutual funds
• Non-deal road show
• Conference calls or one-on-one meetings with 50
  funds
• Indications of 150 million
• Restricted direct offering
• Oversubscribed 7 to 1
• Stock up 80 over 4 months
• Volume increased 4x

Deal Priced, 02/09/06
Stonegate Marketing Process Initiated
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Intraop Medical Corp. (OTC BB IOPM)

• 10 million market cap
• Early stage company
• Minimal sales traction
• Low trading volume
• Seeking 9 million in capital
• Targeted 150 institutions
• Conference calls or one-on-one meetings with 50
  funds
• Closed 9 million private placement
• Stonegate initiates research coverage

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Summary

• We know the small cap marketplace
• A leader in private placements
• Successful track record
• Strong pre and post deal performance
• Provide quality research coverage
• Provide after market support and sponsorship
• We seek to maintain long-term relationships with
  each client