I just talked with Richard Marshall for the first time. I mentioned that the date of July 31 had seemed so final, and that it had come and gone without any comment from management. Many were concerned and wondered whether the parties had agreed to extend the negotiations. He replied that he could not comment on the status of the talks, but that sincere efforts were ongoing.

He was extremely positive about the future of KRY as a partner with the Chinese. So much more will now be possible with their involvement. I told him that at one point, I thought that KRY was going into the bankruptcy dumpster, and was most grateful when the Chinese entered the picture, thanks to Mr. Fung.

When I asked if he thought we would hear something definite today or tommorrow, or by week's end, he emphasized that managment was focusing on CLOSING this deal, and nothing more. He said that as often happens in the corporate world much legal detail often extends deadlines. He also said not to wait hourly, or daily, or even for a few days, or pay much attention to chat room chatter. We will hear soon, and a Closing is their intent.

Such a nice gentleman. I thanked him for his graciousness under difficult circumstances.

Jacki