Bruce and Lois Zenkel, et al. - Page 12

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               The offering memoranda list significant business and tax               
          risk factors associated with investments in the Partnerships.               
          Specifically, the offering memoranda state:  (1) There is a                 
          substantial likelihood of audit by the Internal Revenue Service             
          (IRS) and the purchase price paid by F & G Corp. to ECI Corp.               
          probably will be challenged as being in excess of fair market               
          value; (2) the Partnerships have no prior operating history; (3)            
          the general partner has no prior experience in marketing                    
          recycling or similar equipment; (4) the limited partners have no            
          control over the conduct of the Partnerships' business; (5) there           
          is no established market for the Sentinel EPE recyclers; (6)                
          there are no assurances that market prices for virgin resin will            
          remain at their current costs per pound or that the recycled                
          pellets will be as marketable as virgin pellets; and (7) certain            
          potential conflicts of interest exist.                                      
          C.  Richard Roberts                                                         
               Roberts is a businessman and the general partner in a number           
          of limited partnerships that leased and licensed Sentinel EPE               
          recyclers, including Phoenix and Scarborough.  He also is a                 
          9-percent shareholder in F & G Corp., the corporation that leased           
          the recyclers to Phoenix and Scarborough.  From 1982 through                
          1985, Roberts maintained the following office address with                  
          Raymond Grant (Grant), the sole owner and president of ECI Corp.:           
          Grant/Roberts                                                               
          Investment Banking                                                          
          Tax Sheltered Investments                                                   




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