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From: rptdnmks2002
Date: Mon, 15 Jul 2002 13:09:15 -0500

Emerging Equity Alert 

 Special Situation and Alert: Secured Data, Inc. (OTC BB: SCDD)

Secured Data, Inc. (NASDAQ OTC:BB: SCDD) is a technology company that is dedicated towards introducing its software and hardware ASP products and solutions to the overburdened judicial and law enforcement communities in the United States.

The Company acquired its core technologies from iCyber-Data, Inc. in February of 2002, including the Court Manager SuiteSM, an ASP software package and service designed to seamlessly integrate data and information from various federal, state, and local judiciaries and agencies into a single, easy-to-use Internet and Intranet interface, and IDNet, an ASP solution that provides law enforcement personnel in mobile locations with access to criminal justice databases and command-and-control features via wireless PDA devices. The nature of the this one-stop, remote demonstration package also aptly lends itself to detailed customization, and interconnectivity with clients who's budgetary constraints may limit their ability to fully network with other agencies.


-Increasing security concerns create an opportunity for SCDD to expand product offering.

-SCDD's Court Management Suite beta testing has demonstrated increased courtroom and case management efficiency, and reduced court and administration costs by almost 50%.

-The government IT marketplace is tremendous and growing at a CAGR of 8.6% from 2001's figure of $82 billion in revenues to an estimated $114 billion by 2005.

-The market for judicial management IT software and services alone exceeds $1 billion annually.

-Ready for sales - SCDD spent 2 years in research and development and $2M to develop their proprietary Court Management Suite software.

-SCDD recently completed a successful beta-testing phase in 22 judicial locations, and the Company has already entered into a service contract with Hillsborough County, Florida.

-SCDD expects to have sales exceeding $9M and achieve positive EBITDA in 2002. The Company also expects sales to reach $71M in 2003 with an EBITDA of $21.5M or $1.62 per share.


 Secured Data Inc.





 $0.05 X $0.06

-SCDD has initiated discussions with industry leaders in the networking field to market the Court Manager System and IDNet applications, penetrating other vertical markets such as military operations, hospital systems and commercial conglomerates.


In our opinion, there are 2 ways to value SCDD, one a multiple of earnings, and two a multiple of revenues. According to Multex, SCDD’s peer group trades in the marketplace at 21.82 times earnings. Based on the company's projections of $0.30 per share in earnings for the 2003 fiscal year, this would equate to a stock price of $35.34 per share. If we take the conservative view that the company only does 20% of what it says it will do we are looking at a target price of approximately $7.09 per share in twelve months (based on 2003 EBITDA).

If we look to value SCDD on a multiple of revenues, then we should look no further than Alladin Knowledge Systems (NASDAQ:ALDN). Unlike Alladin, SCDD is expected to be profitable in their current fiscal year, the primary difference for the most part is, Wall Street has not heard of SCDD. If SCDD were to trade today in the marketplace, at the same multiple of revenues as ALDN (which is 0.5 times), then based on the company's forecasts of $71.3 Million in revenues for the 2003 fiscal year, this would equate to a stock price of $2.67 per share.


Continued concerns in the administration of the judicial system creates a potentially positive outlook in SCDD’s revenue and earnings growth, we believe that SCDD is an undiscovered (until now!) and undervalued investment opportunity for risk oriented investors. As Wall Street uncovers SCDD's story, we believe this could have positive effects to SCDD’s share price.


Emerging Equity Alert provides information on selected companies that it believes has investment potential. Emerging Equity Alert is not a registered investment advisor or broker - dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. Emerging Equity Alert accepts no liability for any loss arising from an investors reliance on or use of this report. An investment in SCDD is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. Emerging Equity Alert has been retained to distribute this report on SCDD and has been paid 150k free trading shares by a third party. This report involves forward looking statements, which involve risk, and uncertainties that may cause actual results to differ materially from those set forth in the forward - looking statements. For further details concerning these risks and uncertainties, see the SEC filings of SCDD including the companys most recent annual and quarterly reports.

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