or services that a retailer sells (e.g., clothing, insurance, soft drinks) pay for advertising or provide their product at a better discount in exchange for advertising. There are hundreds of thousands of potential locations for such a low-cost merchandising tool.     The Kinet-O-Scroll is completely developed and tested. The first 100 production units have been completed and a production capacity of over 200 units per month is established. It is projected that the sales rate will rapidly build to a minimum of 100 units per month. This sales estimate, as well as long-term sales projections for the Kinet-O-Scroll, is based on extensive research into the need for this type of product, as well as into the sales history of existing (but inferior) products. This research has also involved consumer studies in which potential customers were asked to rate a variety of existing products against our new product.     In outline form, here is what we believe to be an objective summary of the "strip sign" market and the sales potential of the Kinet-O-Scroll:     The Kinet-O-Scroll is unique in its mode of operation and its technical capacities. For example, it provides at least twice the visual resolution of other scrolling signs.     There are at least a dozen manufacturers of programmable strip signs that can perform a somewhat similar but less efficient function. The total annual sales of these products has been estimated (Advertising Graphics Magazine, Fall 1999) to be $10,000,000. This represents a 27% increase from last year. 1The existent products are all very similar. No one manufacturer commands a dominant share of the market.     1.Many small manufacturing operations will have a local marketing strategy at least to start. Dont let the sort of marketing survey presented here intimidate you. The same sort of approach can be used for any manufacturing business. For example, if you plan to make a better raisin-chocolate chip cookie, or a crisper lemon tortilla chip for local distribution, think about ways you can convincingly tell a potential lender or investor that it will sell.     The published prices of the strip signs that come the closest to having features similar to the Kinet-O-Scroll are in the $1,500 to $2,000 range. As a result of efficiencies of design inherent in the patented technique used in the Kinet-O-Scroll, DAYs published list price is under $1,000. DAYs service contract (available on request) is above average for the industry.     DAYs warranty policy (available on request) is above average for the industry.     The accompanying chart shows the sales volume of programmable signs in the United States in millions of dollars. In 1999, the total market for programmable signs is estimated to be $12,000,000. The corporation forecasts sales of 1,200 Kinet-O-Scroll units by the second year of production at a wholesale price of $550. These sales forecasts are considered conservative in that they are based on a market penetration of only five percent.