G.B. Data Systems, Inc. - Page 3




                                         - 3 -                                          
          all of the corporations in which Mr. Braswell owned stock as                  
          Braswell companies.)  Since at least 1994 to the date of the                  
          trial in this case, most of the Braswell companies were engaged               
          in what they referred, and we shall refer, to as “specialized                 
          direct marketing activities”.4  (We shall refer to the Braswell               
          companies that were engaged in such specialized direct marketing              
          activities as the Braswell sales corporations.)  Those activi-                
          ties, which were intended to sell nutritional supplements to                  
          individuals living in the United States, consisted of mailing                 
          directly to those individuals advertisements that described and               
          offered those supplements for sale (advertising material).  That              
          advertising material included letters, brochures, and so-called               
          16-page mailers.  Since at least 1994 to the date of the trial in             
          this case, certain of the Braswell sales corporations devoted                 
          their specialized direct marketing activities to what they                    
          referred to as the front-end business, i.e., to prospective                   
          customers, and certain of those corporations devoted their                    
          specialized direct marketing activities to what they referred to              



               3(...continued)                                                          
          those other corporations.                                                     
               4As for the remaining Braswell companies, one of them pub-               
          lished a magazine, another owned certain assets not disclosed by              
          the record that were utilized by one or more Braswell companies,              
          another marketed products directly to medical professionals                   
          throughout the world, and another sold certain books written by               
          professionals through direct response advertising such as newspa-             
          pers and magazines.                                                           





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