CON-SPACE Communications Initiated at 'Buy', C$1.43 Fair Value by Investrend Affiliate Fundamental Research


NEW YORK CITY, March 24, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:

Fundamental Research Corp. has initiated coverage of CON-SPACE Communications Ltd. (TSX Venture Exchange:CCB) with a "Buy -- 2 (Below Average Risk)" rating and fair value of C$1.43.

According to analyst Othello Tuason, the company is a niche provider in the design and manufacturing of specialized voice communication equipment for the purpose of providing safety and efficiency to workers in confined space work environments and the Public Safety market. For example, the company's rescue probe, used to locate victims in collapsed structures, was first designed and used to help rescue workers locate victims in the Oklahoma bombing. The company has very little direct competition.

Other investment highlights mentioned in the initial report, available free at www.fundamentalresearchcorp.com and http://www.investrendresearch.com, include: a largely untapped $4 billion potential market; customer demand is supported by regulations such as the U.S. Occupational Safety & Health Administration's regulation requiring workers in confined spaces to have continuous communication with each other at low depth levels.

The company avoids competition by selling private labeled equipment to its competitors which are then sold under the competitor's brands. Revenue growth over the past five years has averaged 19.5%, and is expected to average 24% for 2003-2007. The company has also benefited from the recent surge in mining activity, and should also benefit from increased spending on homeland security programs. The analyst expects the company to pay down all debt by 2006 in management's base case -- internally financed growth based on their discount cash flow model, and verified by valuing the company on a multiples basis as well.

Fundamental initiates coverage of CCB with a Buy rating and C$1.43 fair value. The analyst also notes that CCB has a negative beta which may present an excellent opportunity for diversification when added to an investor's portfolio. Fundamental's EPS estimate differs from management's largely due to tax assumptions. The company also has intrinsically safe certification for its products.

Fundamental Research Corp. is an affiliate of Investrend Research and a member of the FIRST Research Consortium, and subscribes to the "Standards for Independent Research Providers" at www.firstresearchconsortium.com.

The fee for Fundamental's standard coverage is $25,000, and a fee is being paid by the company.

Complete information about this company is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes , and the full report is available at: http://www.fundamentalresearchcorp.com/PDF/ccbinitiating.pdf and www.investrendresearch.com , and investors are advised to read disclosures carefully before trading in the equities of any enrolled company.

Anyone interested in receiving alerts regarding CON-SPACE Communications Ltd. research should email info@investrend.com and distribution@fundamentalresearchcorp.com with "CCB" in the subject line.



            

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