Dow Jones 10170.82 -69.47 1:15 pm PST, July 8, 2004  NASDAQ 1935.32 -30.76 For info, visit access.smallcapnetwork.com S & P 500 1109.10 -9.23 To be removed, please click here Russell 2000 562.68 -9.35 VOLUME 04: ISSUE 52  Feature: C-Chip's TheftStopper - The end of car thefts? There seems little to stop C-Chip (OTCBB: CCHI) from achieving its goals. Not only did the company report total revenue of north of half a million dollars over the last six months, it has sewn up what has to be characterized as a sweetheart sales and distribution deal with US based giant Northland Auto Enterprises. (Release below) C-Chip expects to receive minimum purchase commitments under a Strategic Marketing and Distribution Agreement with Northland of nearly $10 million by the end of 2004. As well, Northland founder, owner and recognized auto sector authority, Mr. Al Lentsch, has hailed C-Chip's auto anti-theft product--to be sold as the TheftStopper by his company--as well ahead of the competition and, he believes, has the potential to end car thefts. One should pay heed to Mr. Lentsch as Northland offers product and services to 19,000 car dealers and nearly 190,000 used car dealers throughout the US. Profitability on the Horizon Oh yes. C-Chip believes that this deal-- as well as those announced previously --will move the company into profitability by the fall of 2004, well ahead of previous forecasts. The shares have been stuck in a range between 75 cents and a dollar, peaking at $1.08 in late May. We believe that the current level makes a good entry point with a view that once that old high is taken out, there will be a nice leg up.  Last issue (May 28) we prudently advised a stop loss at 80 cents. Even though that level was breached, the snapback tells us that the support line noted then is still in place. We feel that the current price weakness of C-Chip --as well as a number of smallcaps that we follow--represent good value going into what we see as a late summer/early fall rally. Only an idiot would classify the current SmallCap market as robust. Unlike life though, in equity markets weakness can be strength. Volumes are down and while we wait for momentum to return, the weak companies bleed out while the strong ones--such as C-Chip-- idle.  Do you know where your car is? Car theft in the US alone takes $3 billion out of the coffers of insurance companies and, by extension, the pockets of customers, annually. TheftStopper--with its three wireless cut off points and RFID transponder--looks to be in first chair to potentially stop the plague of car thefts that grows daily. Obviously de rigueur for the dealer auto market, the security applications for the retail auto market are equally compelling. The relationship with Northland will likely extend beyond car dealers. The company is in discussions with big-box auto retailers and we hope to hear develops on that front from C-Chip very soon. Northland sees mass penetration for the TheftStopper in both the auto dealer and auto retailer markets. In a previous news release, Northland's Al Lentsch-- widely recognized as a major authority and influence in the automotive and insurance industries --endorsed the TheftStopper thusly: "I have been around the insurance industry for a long time and worked with State Police enforcement to deal with the increasing problem of car theft. I'm often called to court as an expert witness and I must say that I've never seen a product such as the Crime Stopper1." (The product has since been renamed the TheftStopper) Other product groups covered under the agreement include C-Chip's credit management solution products branded Pay Master and Eagle. Just gets better and better At the risk of putting too fine a point on the import of today's announcement, the C-Chip/Northland deal isn't just a good deal; it's an exceptional deal. With an expected initial sales commitment of $10 million by the end of 2004, Northland obviously intends--by word and deed--to aggressively gain market share using C-Chip's technology in the huge auto security market. Further, instead of just taking product from C-Chip, the two companies intend to work together to reach and hopefully exceed sales goals. Instead of a one-off sales deal, today's announcement, we believe, represents a mere beginning to what will be a long and lucrative association for C-Chip, Northland, and of course, those investors who have either already seen the potential or decide to use the current market weakness to get onboard.   Press Release C-Chip expects sales to Northland to reach $10 million before the end of 2004 Montreal, July 8, 2004 -- C-Chip Technologies Corporation (OTCBB: CCHI) is pleased to report that under the Strategic Marketing and Distribution Agreement concluded today with Northland Auto Enterprises, Inc., the company expects minimum purchase commitments from Northland alone to reach nearly $10 million in sales before the end of 2004.  Under this scenario, C-Chip is expected to become profitable in the fall of 2004 --well ahead of our internal forecasts. Northland offers products and services to the 19,000 members of the National Auto Dealers Associations, as well as 186,000 used car dealers throughout the US. Mr. , Northland founder and owner, is widely recognized in the automotive and insurance industry. Northland presently has approximately 13 sales representatives and plans to add 20 more in order to adequately represent the C-Chip line to the industry throughout the US.  Northland's sales effort will be focused on C-Chip's anti-theft system to be sold under the brand name of TheftStopper. This state of the art security system is based on wireless and RFID technologies that has been acclaimed by the industry as "unbeatable" and quoted as possibly representing the ultimate solution for the auto theft problem throughout the world.  C-Chip has also developed cutting edge technology tools for credit and asset tracking management. Products also covered by the "partnership" agreement include the PayMaster and Eagle families of products.  Al Lentsch: "C-Chip's star product is their anti-theft system which we will sell as the TheftStopper. This security product represents the future in theft prevention, and is well ahead of everything that's out there. TheftStopper has the potential to literally solve the car theft plague, which affects the insurance industry as well as the consumers who fund these losses--valued at over $3 billion a year. The TheftStopper, with its three point wireless cut-off units and RFID passive transponder represents a new breed of product. We foresee a mass penetration in both the automotive and retail markets."  Stephane Solis: "We could not have envisioned a better partner than Northland.  is close to being a legend in the industry and his endorsement is a literal guarantee of success for our products. C-Chip has a reputation for developing cutting edge products and the Northland association represents a partnership that should allow us to exceed even our most optimistic goals." 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, Inc. Founded In 1990, Northland Auto Enterprises, Inc. 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? 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 offer 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. Contacts:  Stephane Solis, President & CEO  Al Lentsch, President  C-Chip Technologies Corporation  Northland Auto Enterprises, Inc.  514-337-2447                     800-879-3433  ssolis@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.   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. SmallCap Digest is not a registered investment advisor or broker-dealer. 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