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Page i Q,ALITY COMMUNICATIONS FIRE & SECURITY. INC.. QUALITY COMMUNICATIONS OF FLORIDA. INC. .=AND QUALITY HOLDING GROUP. L.L.C. NOTES TO THE COMBINED FINANCIAL STATEMENTS DECEMBER 3I. 2003 NOTE 8 - MAJOR CUSTOMER AND VENDOR Quality Communications of Florida, Inc. had one significant customer during the twelve months of 2003. Sales to this customer represents approximately 36% of the Company's revenues. In addition; the Company had one major vendor during the year. Purchases from this vendor represent approximately 32% of their purchases. NOTE 9 - 401(K) PROFIT SHARING PLAN Quality Conununications Fire & Security; Inc. sponsors a 401(k) Profit Sharing Plan. Individuals are eligible after the first day of the plan year following completion of th ee (3) months of service. The Company's policy is to match employee contributions by 25%, up to a maximum of 8% of the employees' annual compensation. The Company's matching contributions for the year ending December 31; 2003, was approximately S14,800. NOTE 10 - MARKETABLE SECURITIES The cost and fair market value of equity securities at December 31; 2003 are as follows: • GROSS GROSS AMORTIZED UNREALIZED FAIR COST LOSSES VALUE Equity securities available for sale S 876 515 S 131.979 S 744.536 Available for sale securities are carried in the financial statements at fair market value. Gross unrealized losses of 5131;979 are included as other expenses in the combined statements of operations and retained earnings and members' equity. The following is the break down of the marketable securities as of December 31 , 2003: Number of Market Value at Stock Symbol Shares December 31. 2003 Uncommon Media Grp UMDA 5,000,000 S 700.000 Concentrax. Inc. CTRX 72;100 4.105 Panther Mm \Vtr Pk. Inc. PM\VP 7,510.000 15.020 Protsource Corp. PSCO 198,000 27._357 Sickbay Health Media SKBY 141,300 44 Protosource Corp. Ser. B PSCOZ 75,000 7,250 Other 760 ® $_ 744.536 See accountant's review report.