Dow Jones 10188.45 -16.75 5:00 pm PST, May 28, 2004  NASDAQ 1986.74 +2.24 For info, visit access.smallcapnetwork.com S & P 500 1120.68 -0.60 To be removed, please click here Russell 2000 568.28 -0.28 VOLUME 04: ISSUE 42  Feature: C-CHIP - Seriously Secure. Over the last year, C-CHIP Technologies (OTCBB: CCHI) has achieved some major milestones. Past and future shareholders should take note, as the shares have begun to move past the $1 threshold and look poised to see significantly higher levels over the next 6-12 months. After building a base in the mid 90-cent range, C-CHIP shares breached the $1 threshold and hit $1.09, Thursday last. The hit at $1.09 spelled a technical breakout and, once more trade happens north of that level, the chart looks pretty clear on the upside. As with any SmallCap, there will be volatility and for those who want some security, a stop loss at 80 cents makes sense. Accumulation of the shares at these levels looks to be a great long-term bet. Acquisitions: Strategic and Profitable. Our last piece on May 6th highlighted the dozen or so distribution deals the company has signed and our previous articles brimmed with the introduction and sales of new product offerings that both trump the competition and are just really neat due to their technology, low cost, and wireless, web-based functionality. As well, the company concluded a major acquisition last December by snapping up monitoring firm, Montreal-based Canadian Security Agency.  Friday, C-CHIP announced (release below) that it has signed a letter of intent to acquire another private, Montreal-based company, Unique Security. Unique provides security services, including investigation and the monitoring of alarm systems in over 6,000 homes and businesses. Unique had sales of C$5 million ($3.6 million) last year and will become a wholly owned subsidiary of C-CHIP upon closing--expected in the next few weeks. Between these two acquisitions, C-CHIP has bolted on potential sales of roughly C$7.6 million ($5.4 million)--not to mention vastly expanding and diversifying its product offerings, security solutions as well as acquiring highly specialized personnel. Train's leaving the station. The company continues to look for more growth, both through acquisition and self-generated business. We alerted the readership to C-CHIP last November at 86 cents; it now bears little resemblance to that micro-cap which, at the time, had a few nifty products and virtually no influence in the marketplace. Well, that's over. C-CHIP's stated goal with the Unique acquisition, according to CEO Stephane Solis, is "to quickly attain a leading position in the rapidly growing security sector." It appears that C-CHIP is well on its way. While 2003 into the first half of 2004 has been a building phase, the last half of 2004 should see the company move to the next level as sales and acquisitions begin to show up on the balance sheet. Not to say that growth won't continue, but the time is approaching when previous initiatives will deliver for the company and its shareholders. Recently, the company did an equity financing with shares and warrants at prices of 65 cents, $1, $1.10 and $1.50. Should all of these be exercised over the next two years, the company would realize total gross proceeds north of $8.5 million. The initial proceeds were $1.65 million. Impressed? You should be. What impresses me about C-CHIP is that not only is its business easy to understand, the timing could not have been better. Security concerns of all stripes have been indelibly imbued into the public consciousness. Whether an individual wants to secure his/her goods, home and car, or an institution-- be it an insurance or financial concern --wants to expand its business while reducing risk, C-CHIP's products and systems can now satisfy virtually all of those needs. As well, ease of use, low cost solutions and state of the art technology are quickly becoming associated with C-CHIP in all of those sectors. Given how far C-CHIP has come in a few short months, I expect that by this time next year, the company will have much to report, not the least of which will be some very satisfied shareholders who saw the potential early and took a position, now.     PRESS RELEASE  C-Chip Enters Into an Agreement to Purchase Unique Security, Inc. Friday May 28, 4:00 pm ET MONTREAL--(BUSINESS WIRE)--May 28, 2004--C-Chip Technologies Corporation (OTCBB:CCHI - News; BERLIN:CCP - News) announced today that it has signed a letter of intent to purchase 100% of Unique Security, Inc., a private Montreal-based company established in 1974 that provides security services to large institutional and corporate accounts. Unique Security has a U.L.C. certified central alarm monitoring 24/7 station currently serving over 6,000 commercial and residential subscribers. "For C-Chip, this acquisition is part of our strategy to quickly attain a leading position in the rapidly growing security sector," says Stephane Solis, President & CEO of C-Chip. "This acquisition gives CCHI a critical competitive advantage in the Automatic Vehicle Location (AVL) market. We are now one of a very few companies able to provide turnkey security packages to consumers and businesses. C-Chip can now offer a complete infrastructure to monitor our tracking devices from a central point, alerting car owners, police authorities and insurance companies when car thefts occur. The addition of Unique Security Agency gives C-Chip instant penetration in a field we are very actively targeting as well as increasing our credibility in the provision of security and asset management applications." Subject to the completion of due diligence, the transaction is expected to close within the next 45 days. To complete the purchase, C-Chip will proceed with the issuance of restricted shares of its common stock. The transaction is valued at approximately CDN$1.8 million. In its latest fiscal year ended August 31, 2003 Unique Security was profitable generating approximately CDN$5 million in sales. Unique Security's revenues are on a growing curve. Upon the closing of the transaction, Unique Security, Inc. will become a wholly owned subsidiary of C-Chip Technologies Corporation. Mr. Jean-Guy Vandal, President and sole shareholder of Unique Security Inc., indicated: "I'm truly excited to be joining the C-Chip group. They are very focused, aggressive and goal oriented. I believe that C-Chip's security applications are outstanding as well as extremely cost effective. By joining forces, both companies will realize a broad range of new business opportunities that the group intends to capitalize on immediately." 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 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 www.c-chip.com. About Unique Security, Inc. Founded in 1974, Unique Security, Inc. has acquired a solid reputation in security the security service industry. The Company offers different security services including investigation to a large clientele of high-profile Canadian Government Agencies. Unique Security has its own 24/7 monitoring ULC certified alarm central serving over 6,000 industrial, commercial and residential subscribers. The Company currently has about 250 employees with its headquarter in Montreal. 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) 334-2447 ssolis@c-chip.com OR Unique Security, Inc. Jean-Guy Vandal President (514) 279-7152 info@uniquesecurite.com   Source: C-Chip Technologies Corporation   We Value Your Feedback Got comments, questions or suggestions? 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