In re ICTS

I got a voice-mail from Dean Vanek, Scottsborough's general counsel, just a
moment ago. He has just come off a road trip and had a chance to read my
telefax. Vanek will apparently send me some of the documentation I
requested, although it is not clear that he will send me the documents that
reflect that all the loads for which Scottsborough is being sued were in fact
purchased from MG Metals.

My last question on my telefax to Vanek was what attorney Vanek would
typically retain in a lawsuit such as this to defend Scottsborough. Vanek
said in his voice-mail that in this suit, he does not intend to hire an
attorney. Vanek said he would pay whatever the carrier was suing for, then
deduct that amount from whatever Scottsborough owes us for aluminum. Then,
contradicting himself, Vanek said that he would join MG Metals as a party
(which would of course require him to retain an attorney). I assume that he
probably could join us as a party on a breach of contract theory, given that
Scottsborough purchased the metal from us "freight prepaid". I'm not sure
that an Alabama court has personal jurisdiction over Enron Metals sufficient
to allow joinder, but it might.

Vanek also seemed irritated at the time MG Metals had taken to reply to his
earlier communications, and directed me to our Montreal office if I wanted
copies of things he had previously sent to us. Of course, we all decided
some time ago to take a "let sleeping dogs lie" strategy in hopes that a
carrier like Alabama wouldn't actually file suit. In any case, I don't know
how much of this apparent irritation is real or is strategy.

I called Vanek back and again missed him, but left a voice-mail to the effect
that I read his message "loud and clear" and would jump on reviewing the
exhibits he was sending me as soon as I received them. I told him that I was
particularly interested in them because if the bs/l were marked "freight
prepaid", then Scottsborough may have a good defense to the carrier's case.

As you may recall, ICTS has been joined as a party to this action. ICTS is
the party that didn't pay the carrier. I try to call ICTS and see what it
intends to do in this matter.

Britt