Dow Jones 10613.85 +34.82 2:20 pm PST, February 10, 2004  NASDAQ 2075.33 +14.76 For info, visit access.smallcapnetwork.com S & P 500 1145.54 +5.73 To be removed, please click here Russell 2000 592.83 +7.34 VOLUME 04: ISSUE 10  Feature: C-Chip takes Asia. Spectrum's Nifty plans for 2004. Not merely satisfied with its recent announcement of a spectacular $15-$20 million deal with CBM Group to supply MP2 security/tracking devices to home entertainment units, telematics firm C-Chip (OTCBB: CCHI) is moving to aggressively expand into the Asian market. Today's announcement (release attached) of a relationship with Hong-Kong based 7bridge Capital Partners, will see C-Chip's cutting edge wireless security and credit management devices adapted and marketed in what is arguably the largest growth market in the world. Although C-Chip is technically a smallcap company, recent actions and deals evidence its growth potential and scope as a viable and now, internationa,l concern. We continue to recommend accumulation at these levels. CCHI has been somewhat range bound since November between 60 and 90 cents. As it gathers momentum, a break above 94 cents would evidence a new all time high. A good strategy--for short-term traders-- would be to buy the dips and sell the rallies. However, as noted, investors must be careful to have some ongoing exposure as more news could send the stock higher. As a condition of World Trade Organization (WTO) membership, China is being forced to quickly establish both financial and insurance industries. As a result of its cooperative arrangement with 7bridge, C-Chip products are expected to participate in the explosive growth of the Asian automotive insurance sector. Virtually every international automobile manufacturer speaks of the growth in China in almost reverential terms. C-Chip's wireless products --with their small size and reasonable price points-- are a natural addition to the credit management and asset security that will doubtless be sought out by manufacturers, finance companies and insurers as the Asian automotive market grows. C-Chip will also explore other commercial and consumer applications with 7bridge as opportunities arise. The market continues to undervalue the progress and prospects of C-Chip. The company has announced several recent deals and corporate initiatives which, we believe, will return significant profits to those risk-oriented investors who share our view.     PRESS RELEASE C-Chip announces the signing of a Strategic Alliance and Licensing Agreement for the development of the Asian market February 10, 2004 -- C-Chip Technologies Corporation (OTCBB: CCHI) is pleased to announce that it has entered into a Strategic Alliance and licensing agreement with 7bridge Capital Partners Limited, a privately held Hong Kong company, to develop the C-Chip family of products and services in Asia Pacific, with an immediate emphasis on opening the China market.  Each company brings to the partnership significant competitive advantages, which together will create a very competitive offering and a broad market presence. C-Chip will license the C-Chip technology as well as providing technical support on current product applications. 7bridge is committed to invest, not only to develop the China market and distribute the existing C-Chip products in Asia, but also to adapt the C-Chip technology to target the specific needs of the customers in Asia. Ms. Cherry Lim, President of 7bridge and also a Director of C-Chip, commented, "7bridge is keenly focused on growing its business in Asia Pacific. China, in particular, has shown strong growth in the automobile industry which all international automotive manufacturers see as their main growth opportunity. With the opening up of insurance and financial industries as a condition of China's joining the World Trade Organization, we forecast strong demand for innovative wireless security products. Our partnership with C-Chip, a sister company, enables us to enter the China market as this market starts to open up. 7Bridge is already working with established distribution channels with experienced and capable teams in the target markets. 7Bridge is extremely positive on the potential for the C-Chip Technology in Asia, and is strongly committed to bringing this innovative technology to the local market -- especially to China." "This is a strong endorsement for our Company and its technology. " commented Stephane Solis, C-Chip President and CEO. "We are pleased to be working closely with the 7bridge team as they vigorously expand in Asia. For us, an alliance with 7bridge is an important step for the Company to realize its growth potential in an important market, and we view this as a very important step for our business development. Given the synergies that exist between the two companies we will be seeking other ways to expand the relationship." About the C-Chip ? Technology The C-Chip? is a new wireless, web-based  set of communication tools that offers business users remote access, control, and monitoring of a wide range of assets, including vehicles, office equipment and industrial machinery. It allows selective enabling, disabling and any other commands at will, from anywhere to practically anywhere in North America using the Internet. Applications for the C-Chip? technology offers significant opportunities within the markets for credit, security and asset management solutions. Detailed information on the technology and its applications is available on our web-site at www.c-chip.com. About C-Chip Technologies Corporation C-Chip Technologies Corporation is positioned in an emerging and rapidly growing industry which is about interconnecting Machines with IT infrastructures and Mobile assets. We integrate wireless communications, on-line transactions, software applications, RFID technology, the Internet and, when location is required, GPS technology to enable business users to efficiently access, control and manage remote assets at low costs. The Company's goal is to be recognized as a leading provider of credit management solutions for financial institutions, of security solutions for insurance companies and asset management solutions for car rental companies and urban fleets.  About 7bridge Capital Partners Limited 7bridge Capital Partners is the privately held holding company for a financial services, venture capital and private equity group headquartered in Hong Kong. Over the past 10 years 7bridge and its predecessor companies have raised and managed capital for clients in telecommunications and various high-technology industries in Hong Kong, the United States and Canada. For more information about 7bridge Capital Partners Limited, please visit www.7bridge.com. Contacts:  C-Chip Technologies Corporation Stephane Solis President & CEO +1.514.337.2447 ssolis@cchiptech.com  7bridge Capital Partners Limited Cherry Lim President +852.2110.9200 contact@7bridge.com FORWARD-LOOKING-STATEMENT: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the effect of changing economic conditions, competition within the credit and security industry, customer acceptance of products and other risks and uncertainties. Such forward-looking statements are not guarantees of performance, and C-Chip Technologies Corporation results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release, and C-Chip Technologies Corporation undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.   Spectrum Rises on 2004 Outlook Government and military hardware and software concern Spectrum Sciences (OTCBB: SPSC) is also making significant progress. Since we Alerted readers in mid-December at $1.80, the stock has seen increased trade volume and the shares currently change hands at around $2.15--a very respectable 27 percent return in 8 weeks.  Already a good performer, we believe that there is much more to come for SPSC. We continue to recommend accumulation at these levels on the basis of potential deals and corporate developments to come. Investors are beginning to realize that Homeland Security is becoming virtually a standalone sector. Spectrum has worked for many years to position the company to profit from both its technology and extensive contacts in the military and security arenas. We believe that that work is now beginning to bear significant fruit for both Spectrum and those shareholders who have assessed the early and long-term potential of its markets.  The chart denotes SPSC hitting new highs and any resistance seems to be fairly clear.Volumes are picking up of late and selling seems to dry up frequently as the shares forge higher. Investors seem to like this company. So do we.  The price advance appears measured and solid against both the company's fundamentals and its corporate announcements. Investors should ensure that they have at least a small core position. The attached press release summarizes Spectrum's initiatives for the coming year as well as further information on its exciting SafeBorders product, which could well revolutionize border security.  Rather than drone on about the points here, take a moment to read the release. The company's plans are direct and will be of significant interest to current and future shareholders. It's apparent that Spectrum knows where it wants to go, how to get there and, most importantly, intends to build significant shareholder value in the bargain.   As well, the company participated in a virtual conference, Tuesday, at InformedInvestors.com. To register and listen to the piece, click here (http://www.informedinvestors.com/iif_forums/forum345.cfm?forumID=345)   PRESS RELEASE Spectrum Sciences Announces Strategic Initiatives for 2004 Calling for Record Growth Friday February 6, 4:02 pm ET CEO Summarizes Strategic Vision for Critical Market Expansion, Leveraging Key Relationships and Continued Financial Performance FORT WALTON BEACH, Fla.--(BUSINESS WIRE)--Feb. 6, 2004-- Spectrum Sciences and Software, Inc. (OTCBB:SPSC - News), highly focused on homeland security through the provision of full-service, quality solutions to complex and diverse government initiatives, today announced its Strategic Initiatives 2004. Donal Myrick, founder, chairman and CEO of Spectrum made the announcement. "Following a record-breaking third quarter and a number of significant and positive developments for Spectrum, the management of the Company is pleased to announce the launching of the Company's Strategic Initiatives for 2004," stated Mr. Myrick. "We believe that these four strategic initiatives will fuel our success in the year 2004 and beyond." Strategic Initiative #1 - Continued Financial Success: Mr. Myrick stated, "The third quarter of 2003, ended September 30, 2003, marked the most significant financial achievement for the Company in its 20-year history. Third-quarter sales totaled a record-breaking $3,287,609, which marks a 12% increase over the same period for 2002. For the first 9 months of fiscal 2003, sales increased a record 17% to $10,003,999 against the same period in fiscal 2002. "Third quarter 2003 per share earnings rose to .01 from the third quarter 2002 loss of (.02)," continued Mr. Myrick. "The nine-month earnings of .01 per share were significantly ahead of the loss of (.06) per share posted for the first three quarters of 2002. As well, year-to-date, the Company has aggressively paid down its bank debt by more than 17%, from $3,206,824 to $2,657,716. As of September 2003, the Company's order backlog stood at an impressive $10,795,923. "Spectrum's management feels this positive financial momentum will continue well into 2004 and beyond, based on the expanded demand for defense-related solutions worldwide, the Company's favorable position within the industry and the continued development of sophisticated, dependable and cost-effective solutions." Please refer to the Company's SEC filings for a complete description of its financial state. Strategic Initiative #2 -- Aggressive Marketing of New Solutions Supporting Homeland Security Initiatives: "While only recently added to the OTC Bulletin Board, Spectrum has enjoyed 20 successful years in the defense industry," noted Mr. Myrick. "During this time, the Company has developed three distinct divisions, which enable us to deliver turn-key solutions in a timely, cost-effective manner. These divisions include manufacturing, engineering and information technology. There are several products currently in development, which are based on our existing, field-proven technology. The most promising is SafeBorders. Being marketed to the Homeland Security Department, whose budget is currently $30 billion and expanding, and with strong interest from the United States Department of Defense (DoD), SafeBorders is a contiguous border surveillance product related to one of the Company's mainstay product offerings, SafeRange. SafeRange is a complete solution geared to provide a range developer with tools to effect the planning of logistical information, including geographic, environmental and politic boundary information. SafeRange has been in use at bombing ranges throughout the United States for nearly 20 years. By continuing to expand applications for our proprietary, proven technologies and solutions we are realizing two significant business benefits: a significantly higher return on our research development investments, and a reduction in the barriers to entry for these products, since they are based on established products with an existing satisfied client base." Strategic Initiative #3 -- Expansion of Key Relationships: Mr. Myrick further noted, "With our strategic plan validated by recent profitability, record sales and a considerable order backlog, Spectrum is now seeking to capitalize on its position of strength by expanding key relationships with its customers and partners. Of particular importance to the future of Spectrum is the Company's relationship with the United States Department of Defense. As Spectrum's largest and most important customer, the DoD relies on Spectrum to provide a variety of products and services, ranging from its SafeRange product, to managing Gila Bend, one of the country's largest bombing range's, to providing Advanced Medium Range Air-to-Air Missile containers. Currently, the DoD is conducting a detailed review of the development of SafeBorders. "Spectrum's customer base extends worldwide, as evidenced by the recent licensing of SafeRange to the German government," continued Mr. Myrick. "In addition to other government customers, Spectrum sees a significant opportunity in the private sector. In 2004, the Company will be leveraging its experience in the public sector by investigating commercial applications for its solutions and services." Strategic Initiative #4 - Generate Investor Awareness: On November 17, 2003, Spectrum entered into a one time public relations agreement with Capital Financial Media, Inc. ("CMF") in an effort to publicize itself with the intention of making its name and business better known. Spectrum has engaged CMF as its media, direct mail and public relations consultant to provide consultation, support, and assistance in planning and implementing a long-term campaign to enhance and expand public awareness of Spectrum, its technology, products and business opportunity. The services to be provided by CMF are on a time availability basis. CMF will commence an aggressive investor relations program consisting of an advertisement report on Spectrum to be prepared and distributed in the United States and abroad. CFM has received and managed a total production budget of $350,000 for this print advertising effort, and will retain any amounts over and above the cost of production as a fee for production services. CFM may also receive new subscriber revenue as a result of the advertising efforts. Additionally, as part of the consideration, CFM may receive 2 tranches of 250,000 warrants to purchase Spectrum shares from the Company at strike/exercise prices of $1.60 and $3.20 (dependant upon performance). No CFM shares will be sold for at least 60 days after the dissemination of the advertisement. Summary Mr. Myrick concluded, "Spectrum's long-standing position as a favored defense vendor, coupled with ongoing, positive financial performance, provide a solid foundation for aggressive growth. Management is determined to capitalize on the immediate, significant opportunities available to the Company. Our business model is currently successful and tuned to deliver competitive advantages, improved margins, and ultimately, increased shareholder value. We are actively encouraging the financial community to review the Company information on our corporate Web site: http://www.specsci.com." Cautionary Statement This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, risks set forth in documents filed by the company from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by, or on behalf of, the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. Contact: Spectrum Sciences and Software, Inc. Steve Cook, 800-368-5278 Steve.cook@specsci.com or Investor Relations: Trilogy Capital Partners, Inc. Michael Briola, 800-251-1770 michael@trilogy-capital.com   Source: Spectrum Sciences and Software, Inc.   We Value Your Feedback Got comments, questions or suggestions? 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