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Message: Block Syntax Brillian (BRLC) Chapter 11 filing by the Court
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Jul 15, 2008 06:55PM

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Jul 15, 2008 08:42PM

This is a letter by disgruntelled shareholders of SYNTAX-BRILLIANT from other board. The share price of BRLC is hovering around ONE cent, unbelievable!

Target:
Office of the United States Trustee - Attn: Mark Kenney
Sponsored by:


Re: Syntax Brillian Chapter 11/Case No. 08-11407 (BLS)

Dear Mr. Kenney,

We, as common shareholders are holding a significant number of shares in Syntax-Brillian (SB). The acting CEO, Mr. Rayburn, has indicated that the common shares will be worthless after the Chapter 11 reorganization and the sale of the company to a privately-owned Olevia International Group, LLC.

The shareholders, who invested their hard-earned money based on what they were told by the company, deserve some equity in the new entity, despite Mr. Rayburn s efforts to wipe us out. Mr. Rayburn appears to be using the Chapter 11 system simply to expedite the sale of the company and erase existing shareholders investment. The shareholders have not seen any financials in months; however, we were told less than a year ago that the company expected revenue to be over ONE BILLION DOLLARS for 2007. How is it that SB was unable to pay their electric bill? Where did all that revenue go?

We were told that the new contractor had an initial order to manufacture 300,000 units, with a 2008 goal of 1 million of the Olevia brand televisions. We were told that a new built-in surround sound system was in the pipeline of new products. The Olevia brand is sought after and was rated as a "Best Buy" by Consumer Reports. Insiders had been buying shares in 2008 at much higher prices.

Out of the blue, Mr. Rayburn filed for Chapter 11. The company is in debt for $60 million. What has the company done with their projected ONE BILLION DOLLARS in revenue for 2007? What has happened to the shareholders' equity? We have been kept in the dark far too long. The financials should be carefully scrutinized by the Court before any sale is allowed to go through.

We would respectfully request that a Committee be formed on behalf of the shareholders to investigate this entire transaction, and would request an answer as to whether or not the filing of the Chapter 11 was a necessary move for the company in order to remain solvent. There are many conflict-of-interest and outright fraud issues that should be investigated as well, including the role of Silver Point and the actions of the former corporation, Three Five Systems, from which SB was formed, as well as the insiders and officers of both companies.

We have a right to demand answers. Until the BK notice came up, all we had to go with was the last conference call in November 2007. We do not trust this management to do the right thing. If we must go into Chapter 11, we should not do it under this management. We demand a new board that takes our interests into consideration.

SB could not lose $375 million in only 3 quarters of time. Impossible they lost at such a short time frame nearly all receivables and tooling deposits. Reality is they stole the money (tooling deposits) by accounting probably a tenfold the real amount necessary. That is why the business model collapsed. They were sophisticated thieves. And astonishing nobody here seems to realize. SB simply transferred all the money to the chinese and taiwanese companies under the umbrella of tooling deposits. Receivables so called not able to be collected from SCHOT stayed in Hong Kong.

As investors, we understand the risks involved; however in this case, with the Olevia brand that is growing in name recognition, popularity, and sales, the common shareholders deserve to receive some equity from the proposed sale of Syntax Brillian AND the alleged sale of the Vivitar unit, and until a satisfactory resolution can be made in favor of the shareholders, the SALE of the company should be blocked by the Court.

We the undersigned request that the Court Block the SALE of the company and the Chapter 11 filing.

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