"Naturally A Stellar Performance"
350 Lexington Avenue, 4th Floor New York, New York 10016-0909
212/949-7211 FAX 212/949-7274 info@afund.com

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DCH TECHNOLOGY

We are here posting a preliminary analysis of our client, DCH Technology.

CORPORATE DATA:
First Trade:  May 28, 1997 or June 11, 1997 (Data not verified)?
Incorporation: February 23, 1996 10 am Denver Colorado
Key Date:  May 27, 1997 became a public company through a reverse merger.
Headquarters: Valencia, California
Birth data of Principals:
David P Haberman Chairman of the Board: November 08, 1960, 2: 29 am New York, NY
David A. Walker President: November 14, 1957  1:19 am Santa Monica, CA
Web site:  http://dcht.com
Investor Relations:  IR FAQ  Email Investor Relations  Phone: 888-HYDROGN EXT 11

The company was DCH Technologies.  While I had briefly looked at it nine months earlier, I had totally forgotten about it.  It seemed too far away (at the time) from fuel cell production, and the stock chart pattern seemed to be entering a downward spiral.  But after about 30 minutes, my interest was revived.  I made an appointment the next day with David Haberman, Chairman of the Board of DCH Technology, at my office. After a second meeting with David, we entered into contract.

I strongly want this company to succeed.  Along with population control, I believe clean energy usage is of the utmost importance.  I was shocked to learn from David that 7 1/2% of Los Angeles pollution comes from China! Such pollution is a global problem that I see only being solved by cheaper and better technology.   I long for the days when solar/hydrogen vehicles cruise Manhattan streets, emitting no noise or pollution.  That will lead to a golden rebirth of cities....

I see DCH as a perfect speculative SRI investment.   It has the needed technical competence, along with the dual possibility of making the world better and investors richer.  Additionally, it has a twin business focus - Hydrogen safety sensors and Hydrogen fuel cells.  The former provides a stable EXISTING business that is likely to be in EVERY future Hydrogen powered car regardless of manufacturer. This alone justifies a stock price of more than $1.  Their PEM fuel cell is an "option kicker" wild card, that may take the stock to $5 or even $30.  More on this after we complete our due diligence.

10/20/99 This is a CRITICAL day astrologically.  Even though we are far from completing our due diligence, with DCHTE stock trading at .25 we are doubling up and more. Its intermediate term horoscope is far too good for a $0.25 stock.  While a "BB" stock, in this case the first "B" stands for "Bargain", not "Baloney"!

10/11/99  This is stock is under twin attack, the threat of delisting (hence the "E") and year end tax loss selling.  We believe that either the current 3/8 is a floor, or in worst case 1/4.  If after your own due diligence, you wish to buy at bargain basement prices, a first entry price between .40 and .50 is recommended, with another entry either higher at .75 or lower at .25.  The horoscope is excellent for 2000;, the remainder of this year is highly risky, with the caveat, it COULD be highly profitable.  We foresee a basing above $1.25 by February 2000.

Note: If DCHT is unable to receive the green light from the SEC by Nov 3, 1999 on their form10sb, filed Aug. 6, then they will only be quoted on the pink sheets, until they are restored to full market maker quotation on the electronic bulletin board.

The business is currently targeted to Environmental Safety primarily hydrogen sensors and Hydrogen Energy primarily Fuel Cell Technology.

READER:  I put in a buy order for DCHTE at .25.  Their bid, I was told, is .31.
HW:  Some shares were traded at .25 and you may or may not get them. Most of our buying was higher in the 30's and low 40's.  You may have to pay more, .32 to .35 if you definitely want to own it. I am using the 0.25 price limit for second and third buys, not first buys.

READER: Re: DCH, you said, "Note: My three favorite new post-millennium themes are: Hydrogen...."  Another one of your favorites, RD, is maybe the only Oil company that is favorable on hydrogen.  Having worked a bit in that field (among others), I  think this is a good call on your part.
HW: Thank you for your comments.  I believe DCH is in contact with RD.

Reader: What do you make of the E being placed behind the ticker symbol?  I confess that I really do not understand what it means.  Does it have something to do with the pink sheets?  What are the      chances that DCHT will be delisted from the NASDAQ and what would that mean to us shareholders?
HW:  It is means they are being warned. However, they have done what is needed, so I would say the odds of this happening about about 25%.  Also should it happen, it would be circa November 3, but it is my belief they would probably be re-instated within days or weeks at the most.
As to the stock, it would mean less active trading and possible dumping. Right now 3/8 is the floor, it would probably make $0.25 the new floor.  However this is mostly technical analysis, as they did file and the response comments were mostly grammatical. To me, such a "crisis" would represent a major opportunity to double up.

READER: To trade the stock, one needs the first-trade, but to look at the potential of the company and if it has a chart that is supportive of the sector they are in, one uses the incorporation chart.  He will see that DCHT has a Moon in Taurus and Jupiter is now in Taurus (although it is retrograding back into Aries, it will return to Taurus first of the year) and next year the public should really discover DCHT.  The alternative energy sector is being highly tauted as the next "Internet" sector.  A stock performs best when the sector it is in is on a roll and that is where we should go with DCHT.
HW: We agree (but for different astrological reasons) that 2000 will be a stellar year for DCHT.