Dow Jones 10241.26 -69.69 1:00 pm PST, May 06, 2004  NASDAQ 1937.74 -19.52 For info, visit access.smallcapnetwork.com S & P 500 1113.96 -7.57 To be removed, please click here Russell 2000 563.06 -7.00 VOLUME 04: ISSUE 36  Feature: C-Chip: Distribution deals the key When we last visited with telematics concern C-Chip (OTCBB: CCHI) on April 14th the company announced the successful integration of several distribution initiatives for its security and credit management products. More than 10 distribution partners had been signed up.  Yesterday, the company announced its latest distribution deal--perhaps the best, yet. (Release below). Further, as trade volumes rise, it is apparent that the market is beginning to recognize the small Montreal-based company's potential. We suggested last time that investors accumulate the shares in the low 80-cent range. Readers who heeded that direction have seen their shares increase to the $1.05 range in a couple of weeks--a return of 28 percent. We believe that there's more to come on the upside. While C-Chip has seen modest gains so far--although 28 percent isn't too shabby-- investors should begin or continue to accumulate the shares for the distribution and sales deals that we believe will be concluded over the next few weeks and months. The latest distribution announcement is very compelling. Minnesota-based Northland Auto Enterprises distributes and sells products to approximately 200,000 car dealers in the US. Multiply the number of dealers by the number of cars on the lots as well as incoming vehicle stock, and investors will quickly appreciate the scope, depth and revenue potential of this deal for C-Chip. Northland will distribute C-Chip's products under a private label arrangement. Product has already begun to ship from C-Chip to car dealers serviced by Northland. One of the greatest sources of theft in the Auto market is car theft directly from dealer lots. The quick location of stolen autos is key and courtesy of C-Chip's web-based tracking, financial losses from auto theft can be significantly mitigated. As we have noted before, the credit management solutions offered by C-Chip allow less than credit-worthy folks to own a car, which translates into more sales for dealers. The ability of the wireless, end-user transparent solutions to lower delinquencies and enforce payment means that the dealer or finance company risk is diminished. If an individual doesn't pay, the vehicle can either be disabled, or quickly located and repossessed. C-Chip's quarterly numbers will be out on or about May 14th. We expect, given the deals and growth that the company has experienced in the last few months, those factors will be well reflected in that release. From a company with a few nifty products a few months ago, C-Chip has secured a number of high profile and potentially lucrative distribution and sales deals. Those same products are obviously being discussed and considered by more auto, financial and insurance companies as not only useful, but critical. Insurance mandates all over the world are moving toward a C-Chip type of security and credit management solution to lower financial and underwriting risk. While the auto sector is important, investors should also not lose sight of C-Chip's other area of influence; the luxury goods market. As we noted on January 26th the company did a $15-$20 million deal with distributor CBM Group for inclusion of 120,000 wireless telemetry units--dubbed MP2--for the tracking and security of home appliances and entertainment units, including plasma screen TV's. C-Chip is not only commercializing its technology, but appears to be exceeding even its own expectations. As more distribution and sales deals are announced, we are confident that C-Chip is well on its way to becoming an influential force in the multi-billion dollar security/credit management solution sector.  Investors who see the potential now, we believe, will be well compensated over the medium and long-term for accumulating shares at this exciting--albeit early-- stage of the company's development.   PRESS RELEASE C-Chip Enters into a Sales and Distribution Agreement with Northland Auto Enterprises Wednesday May 5, 4:45 pm ET MONTREAL, May 5, 2004 (PRIMEZONE) -- C-Chip Technologies Corporation (OTC BB:CCHI.OB - News) is pleased to announce that it has concluded a marketing and distribution agreement with Northland Auto Enterprises, based in Minnesota. Northland's distribution network currently includes about 200,000 new and used car dealers across the United States. C-Chip has already made initial shipments to car dealers serviced by Northland. Stephane Solis, President & CEO, said: ``I'm delighted that an organization with the market weight and influence such as Northland has chosen C-Chip as their preferred supplier of wireless credit and security solutions. After years and millions invested to develop our technology, I'm very pleased to see that our credit and security management solutions that we have designed for the automotive market are attracting the interest of one of the most significant players in the industry in the United States.'' The agreement involves the nationwide distribution of C-Chip's complete line of products offering credit and security management solutions for the automotive and power sports vehicles industry. Northland will market C-Chip's products and services under its own private label. For C-Chip's credit management solution, Northland will market to dealers within the Buy Here Pay Here (BHPH) community a basic yet effective solution offering complete remote control over vehicles using a simple web-based application. When the location of vehicles is required for either credit enforcement or security solutions, Northland will offer C-Chip's most sophisticated solution which includes 2-way wireless communication and GPS technology. Northland will also offer within its dealer's network C-Chip's anti-theft solutions for cars and power sports vehicles. Based on Radio Frequency Identification (RFID) technology, C-Chip's anti-theft solutions are deemed most effective as they are totally passive for end-users. Al Lentsch, Northland's President, indicated: ``We expect C-Chip's solutions to be quite successful within our network of dealers. C-Chip's tools are not only very effective in reducing payment delinquencies, but are also quite efficient in diminishing significantly the theft of vehicles. We intend to initiate a major sales and marketing drive based on C-Chip's product offerings at the NABD convention to be held in Las Vegas beginning May 26.'' 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 Northland Auto Enterprises Founded In 1990, Northland Auto Enterprises sells and distributes a variety of dealership-friendly programs designed to make dealerships more competitive and profitable. Northland's nationally recognized Keys To A Better Dealership sales and marketing tools are currently marketed to approximately 200,000 new and used car dealers across the United States. Each of these unique, dealer focused programs must meet a stringent degree of standards before it can be offered. Among other, Northland has pioneered the highly successful Ren'T'Own program as a better alternative to the many challenges faced by Buy-Here-Pay-Here lots. About the C-Chip(tm) Technology The C-Chip(tm) 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(tm) 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 http://www.c-chip.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.   Contact: C-Chip Technologies Corporation  Stephane Solis, President & CEO  (514) 337-2447  ssolis@cchiptech.com Northland Auto Enterprises  Al Lentsch, President (800) 879-3433 Source: C-Chip Technologies Corporation   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 3525 Del Mar Heights Rd #334 San Diego, CA 92130 Unsubscribe Here D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. 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