Bill, listed below is the crux of the financing arrangement for the Series "E" round. Given the market conditions it is a very good deal for ZANTAZ. Call me in the office tomorrow if you have any questions.

The valuation for the company will be $48M, the share price is $2.50 per share with one warrant for every 7 preferred shares purchased. The warrant is at 10% of the share price, or 25 cents. We will be raising $5M. Three million from current investors and two million from CDC/Kineon. CDC/Kineon may purchase more but for now it is two million. The result of all this is that there will be approximately 43.8 million, fully diluted, shares outstanding. The good news is that the preferences for some of the original investors will be reduced or eliminated because of a pay to play provision that is part of this offering. 

Please keep this information to yourself it is not to be disseminated until the deal is done, thanks.

Ralph

Ralph Mele
5671 Gibraltar Drive
Pleasanton, CA 94588
DL (925) 598.3007 FAX (925) 598.3144
Email: mele@zantaz.com

This email has been captured and archived by the Zantaz Digital Safe.
For more information, see us at http:www.zantaz.com.

-----Original Message-----
From: Bill Bankert (home)
Sent: Wednesday, April 17, 2002 2:59 PM
To: Ralph Mele
Subject: ZANTAZ Funding Round

Ralph,

Can you give me a call and fill me in on the upcoming(?) funding round.  I
have just heard about it but do not know any of the particulars.

My home office is 245-0655.

Bill
CARPE DIEM!
BIBO VINUM!
I know, the imperative is "BIBE VINUM".
It is imperative you seize the day!
It would be nice if you enjoyed the wine.
Just a little play on grammar.