Dow Jones 9979.05 +57.19 8:08 am PST, December 11, 2003  NASDAQ 1926.29 +21.64 For info, visit access.smallcapnetwork.com S & P 500 1067.41 +8.36 To be removed, please click here Russell 2000 538.41 +9.92 VOLUME 03: ISSUE 80  Trading Alert: Spectrum Sciences and Software Inc. Remember: you heard it here, first. As a matter of fact, it's very likely that this is the first anyone has heard of recently listed Spectrum Sciences (OTCBB: SPSC), an exciting--and profitable--engineering and manufacturing company with tentacles in the commercial, defense and Homeland Security sectors. Did we mention that one division of Spectrum manages the largest bombing range in the US, too? Do you even know where the largest bombing range is? You will. We believe that Spectrum's numbers, diversity and potential should yield significant profits over the next 12 months, and suggest that risk-tolerant investors begin a share accumulation program. Investor bullet points: Newly listed on the NASDAQ Bulletin Board -- December 8th 2003. 19 million shares outstanding. Float 4.4 million shares. 2002 revenues $12 million-plus. 9-month 2003 revenues $11 million. Per share (9 month) earnings 1 cent versus a 6-cent loss for first 9 months 2002. Three revenue divisions: Engineering Services, IT and Manufacturing (ISO 9001/2000 qualified) for Dept of Defense (DoD) customers: Customer stability as Spectrum's main customer, the DoD, is not likely to stop growing or doing business, ever. Unique products designed to focus on the multi-billion dollar annual growth in Defense and Homeland/Border security sectors. Press release (see below) states that Spectrum "...continues to add contracts at a record pace." Significant--and growing --$11 million order backlog. At a market cap of $33 million and annual current  revenues of approximately $13 million, the company's market value can be categorized as trading at a very compelling 2.5 times sales. As other defense companies trade as high as 10 times sales, if Spectrum manages--which we believe is eminently possible--to trade up to even 5 times sales, the price could well move from its current $1.75 to roughly $4 or higher. That is an initial 130 percent return from current levels. As more investors home in on Spectrum, we believe that significant price to sales ratio expansion is extremely likely. The shares achieved a new high on November 25th (to $1.92) and have since pulled back and retraced 50 percent (to $1.75) of that November run. With the shares at $1.75, we feel that technically, the $1.70 to $1.90 level for the shares represents a favorable entry point to begin accumulation.  Bordering on the Amazing The US Government has made little effort to hide its intention to do whatever it takes to secure the homeland borders. Enter Spectrum. A product under development, SafeBorders, will be presented to the Border Patrol and Homeland Security Departments early in 2004. The application is included in aerial surveillance and quickly exposes areas of illegal border penetration through the use of infrared, heat seeking sensors and an array of other state of the art monitoring components. The product optimizes the speed and effectiveness of identifying potential threats attempting to enter the US illegally.  Spectrum feels that they well ahead of any competition in this area and that its custom, proprietary product will more than address the current border concerns. Discussions are ongoing and interest within the Departments for this product has been high. The revenue potential for this application is in the $10's of millions of dollars. Spectrum is also developing an Unmanned Aerial Vehicle (UAV) complete with custom sensor applications--including SafeBorders--that will be at a much more reasonable cost than current vehicles such as the Predator UAV. SmallCap Digest will follow these developments closely. More Rocket Science? As a matter of fact, Yes. Spectrum's strength lies in solving complex military and aerospace technical problems. For example, two of SPSC's analytical tools --Safe-Range and Airspace Manager--are utilized in over 60 military installations worldwide, evidencing Spectrum's global reach and potential. These tools allow analysts to critically manage bombing ranges using satellite imagery through the generation of Weapon Safety Footprint Areas. As well, airspace managers can visualize airspace data information to effect the design, development, display and a host of other parameters in the measurement and storage of complex airspace displays and database information. Spectrum also provides customers with Environmental Services, including noise modeling, airport planning and environmental impact assessments. This division counts half of the Air Force's 'special use' airspace as well as the majority of the USAF's training ranges among its contracts. These products and services are but a small portion of those offered by Spectrum. The Florida-based company continues R&D to develop new products and refine and upgrade those existing. The company has demonstrated the ability to identify, solve and implement quality management and software solutions to technological problems that, for the most part, were previously unsolvable. Although the company specializes in the design, development, manufacture, and system integration of aircraft and munitions support equipment, the potential within the Department of Defense, foreign military concerns and the commercial sector remains significant. From little acorns.... The rapid revenue growth noted above augurs well for the company's continued growth and success, both domestically and abroad.  The military sector is Spectrum's main focus. Obviously, investors don't have to worry about that area of the economy going broke or massively downsizing anytime soon. As well, because Spectrum keeps ahead of the rapid technological changes that are characteristic of the defense industry, future contracts should appear with regularity, adding significantly to future revenues and sales. For what is, by definition, a small company, Spectrum has already shown impressive revenue growth and seems imbued with virtually unlimited potential. We are expecting good news flow as the company secures new contracts and assignments, within both the global military and the commercial sectors. Oh, yes. That bombing range that Spectrum manages--the largest in the US--is in Gila Bend, Arizona. Family vacation perhaps? Take the kids...   PRESS RELEASE: Spectrum Sciences Announces Record Sales and Positive Earnings Wednesday December 10, 9:42 am ET * FORT WALTON BEACH, Fla., Dec. 10 /PRNewswire-FirstCall/ -- Spectrum Sciences & Software Holdings Corp. (OTC Bulletin Board: SPSC - News) today announced record 3rd quarter sales of $3,287,609, a 12 percent increase over the same period for 2002. For the first 9 months of fiscal 2003, sales increased a record 17 percent to $10,003,999 against the same period in fiscal 2002.(Logo: http://www.newscom.com/cgi-bin/prnh/20031209/FLTU018LOGO) Third quarter 2003 per share earnings rose to .01 from the third quarter 2002 loss of (.02). 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 percent, from $3,206,824 to $2,657,716. As of September 2003, the company's order backlog stood at $10,795,923. Nancy Gontarek, the CFO of Spectrum commented, "We are all very excited by these numbers. We feel that they represent how our new marketing and cost control programs have, and will continue to, positively impact the rapid growth of Spectrum Sciences. We believe that the company is perfectly positioned to execute the corporate development plan we have in place, and we expect to continue to grow at record levels." Spectrum Sciences & Software Holding Corp. is headquartered in Fort Walton Beach, Florida. The Company founded in 1982, currently has over 130 employees. We provide full service, quality solutions to complex and diverse matters of homeland security. Primary markets include Engineering Services, Information Technology and Manufacturing. We manage and provide Software Model Development and Safety Footprint Development to the largest bombing range (Gila Bend) in the United States. The Information Technology Division provides a full range of IT services including Web Site Development and Hosting, Software Development, and GIS services. Our Manufacturing Division is ISO 9001/2000 qualified and provides a broad array of manufacturing services for both commercial and Department of Defense customers. To find out more about Spectrum Sciences, visit our website at www.specsci.com . For Investor Relations questions contact: Steve Cook, (steve.cook@specsci.com) 800-368-5278 or 850-796-0924 ext 44. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Spectrum Sciences & Software Holdings Corp. business which are not historical facts are "forward- looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.   Source: Spectrum Sciences & Software Holdings Corp.   If You Haven't Already, Sign Up For Your FREE Preferred Membership! Over the past year, we've brought you 13 Trading Alerts. If you had invested $1000 in each one, your $13,000 investment would have grown to $23070, if you had sold, say, Friday November 7th, to pick a day. That's a 78 percent return in a less than a year. The best? Obviously, Cel-Sci. The worst? ThinkPath. If we strip those two out--the highest and lowest returns--the return on your $11,000 investment would have been a very respectable 51 percent. Not too shabby. By comparison, the S&P index has returned about 20 percent over the last year. The NASDAQ--to which we also alerted you at the low in March 2003--has returned around 40 percent in the same period. The NASDAQ Tracker (NASDAQ: QQQ) did slightly better than its benchmark having risen 45 percent. Oh yes, we told you about that one, too at $24 in February 2003. Now it's $35. And we're only looking at Trading Alerts. I suspect if we included all of our Company Profiles (check our Track Record), the numbers would likely have been even better. The best is yet to come. Sign up NOW! Joining our NEW Preferred Member Program is easy and simple. Just follow this quick two-step process: Opt-in your email address, then, make sure and confirm the request for confirmation you will receive in your inbox. That's it! You'll automatically be in position to start receiving these new special features available only to Preferred Members! To subscribe to the preferred member list, simply click here. 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