+ + gml, cto and leg + +

Introduction:

Sofar we have looked at the fundamentals of LEG and Investors overall seem to be happy with them.

CTO is taking over GML and as a consequence there will be 410 mill shares and 37.5 mill. prefs., 29 March 2007 @40 cents.

The CTO/GML shares are trading for 14/14.5 cents.

LEG has 129.6 mill shares and 36.1 mill options to be converted at 15 cents in April 2005.

For the purpose of this execise consider everything to be shares now.

So, CTO will have 447. 5 mill shares and LEG will have 165. 7 mill shares. So, CTO will have 2.7 times the LEG shares.

THe CTO market cap will be $63.77 mill and the LEG cap is 33.14 cents or 52% of that from CTO.

The question is, if their market caps are compared, should one of these in relation to the other, rise?

That is something I want to look into in the next few days, if I have time.

Gerry