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Message: Our visit to BioAgra

Our visit to BioAgra

posted on Nov 14, 2005 12:10PM
Zties and I had a good visit at BioAgra recently.

We met with Mr. C.M. ``Chick`` Mihalich, Vice-President of Operations and he gave us over two hours of his time, staying late at the facilities. Our thanks to him.

We were shown the production floor which is coming along well with the installation of tanks and a tremendously complicated network of piping. The tanks are utilized for stages of chemical treatments to extract the beta glucan molecules and piping to send the solution to the next process.

Producing beta glucan is both exact and for more complicated than I had previously understood.

Delivery of other production components are expected throughout the month and are scheduled and installed by a professional contractor whom I also had the chance to meet. We were able to observe from a safe distance the arc welding and installation of one tank and piping.

Laboratories are being set up for both quality testing and further research.

What is clearer to me is that BioAgra`s business focus is to become known as the highest quality beta glucan producer in the world. Beta Glucan is being produced already and is being utilized in the poultry industry. The demand is very large and is growing. Mr. Mihalich point blank stated that their process is intended to produce the highest quality product and in quantity to service their customers.

I am also impressed with the attitude of both Mr. Mihalich and Mr. Bartoletta in that they strongly state that they believe in servicing their customers with quality, consistency and reliability.

I have not met Mr. Bartoletta but have talked with him over the phone.

The schedule is as we have previously heard. They do intend to be production ready by January 1, 2006. All components should be installed by the end of this month (November 2005). Shakedown should be achieved through December 2005.

With the demand that is in the market today for beta glucan and with the proving of BioAgra`s quality and quantity of product, there is optimism that full production will be purchased/ordered in short order. Expansion is believed to be inevitable sooner than later. There is plenty of room at the Hinesville facility for expansion. If need be, they can build more buildings on their seven acres.

As we talked with Mr. Mihalich, I began to understand that they are focused on building a business that will grow strongly and be very successful. They, frankly, do not follow the stock market, could care less about the share price, and expect to receive their bounty from their interest in X-Act Resources.

That may ruffle some feathers but I like that. If they succeed, we will.

And, Mr. Mihalich will not allow information to be disseminated to the world until it can be proven and substantiated. He exerted this attitude with us by replying at times that he could not answer certain questions. We respected that but also did not hold back our questions.

On the above note; I have a great deal of respect for Zties. His research in Beta Glucan is extensive and he was able to discuss technical items with Mr. Mihalich that kind of left me behind. I was and am very happy Zties was there.

They are hiring staff as they have the need for them. There are currently over ten people working there and I saw office, lab, and production space enough probably for another twenty employees. Mr. Mihalich was asked if there is a quality labor pool to hire from and he responded yes.

As they add more lines, they will need more production staff.

In closing....

I liked what I saw. I am ok in holding my position and may add to it as discretionary funds become available for high risk investing. Several events have to come about for this to exceed expectations:

- we need to get the reorganization of NPCT over and done with, i.e. name change, reverse split, etc. IMHO our trading is being held back with that hanging over our heads.

- BioAgra needs to be in full production with consistent high quality and quantity.

- BioAgra needs to have the sales to purchase all the first line of production.

Now though I anticipate we will have press releases for all of the above, I can not be sure that we will have advance notice of sales (advance to the 10Qs). I hope we will see PRs regarding customers and sales but I do not count on that.

So, I am optimistic and am back in my role of being the ``overly optimistic`` NPCT investor. I do feel that there is a foundation for optimism.

And interestingly enough, NCS, Smart tags, etc. are not out of the business model. They could very well take off as is partly indicated by the substantially increased revenue of Exypnotech Gmbh. So I find that is another reason to keep holding long and strong.

Regards,

Kent

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