If you go back to the Shareholders Alert dated November 19, 2004 you see why they have chosen to convert the Series EE to common stock. The maximum price may have been $.25 however certain conditions on the average stock price prior to conversion would allow them to convert at $.19, the minimum amount.

I believe those conditions were recently met, in fact at 85% of the average would have given them a lower price if the minimum had not been established.

For reference an excerpt follows detailing the equation used in the agreement.

The stated dollar amount of Series EE Stock, is convertible into fully paid and nonassessable shares of Common Stock at a conversion price of $0.25 per share which is fixed for the first 90 days following the original issue date, and commencing 90 days following the original issue date, the conversion price shall equal the lower of (i) $0.25 and (ii) 85% of the average of the volume weighted average price per share during the ten consecutive trading days immediately preceding the conversion date. However, the conversion price shall not be below $0.19 except as may be subsequently modified as a consequence of any future issuance by the Company of common stock priced below $0.19 during the term of the Series EE Stock. The Series EE Stock shall be subject to automatic conversion on November 18, 2006 subject to certain conditions.

OZ