Joseph and Susan L. Ferraro - Page 16




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          concluded, therefore, that the applications and markets based on            
          the recycled pellets were never seriously contemplated.                     
               Grossman did not specifically value the Sentinel EPE                   
          recycler.  However, as previously stated, Grossman concluded that           
          existing technology provided equivalent capability for recycling            
          polyethylene.  Moreover, Grossman reported that information                 
          regarding the status of recycling in the plastics industry in               
          1981 was already well documented.  Grossman reported further that           
          an individual investor would have had little or no difficulty in            
          confirming the invalidity of the claims in the private offering             
          memorandum and, in particular, the claims of Ulanoff and Burstein           
          suggesting that the Sentinel EPE recycler was unique.                       
               2.   Lindstrom                                                         
               Lindstrom graduated from the Massachusetts Institute of                
          Technology with a bachelor's degree in chemical engineering.                
          From 1956 until 1989, Lindstrom worked for Arthur D. Little,                
          Inc., in the areas of process and product evaluation and                    
          improvement and new product development, with special emphasis on           
          plastics, elastomers, and fibers.  At the time of trial,                    
          Lindstrom continued to pursue these areas as a consultant.                  
               In his report, Lindstrom determined that in 1981 several               
          different types of equipment capable of recycling expanded                  
          polyethylene were available and priced at approximately $50,000.            
          Lindstrom found that, on the basis of his research, "there were             





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