S.A. Advisory E-Mail Update

September 3, 1997

Dear E-mail Subscribers:

For those of you that love low-priced,undervalued growth oriented penny-stocks-one much take a serious look at this opportunity, namely SEMICON TOOLS (nasdaqBB-SETO- fully reporting).We first introduced this investment idea in our last newsletter @.07- presently SETO trades at around .11 cents-- Even though we have had a small move the true value of SETO has yet to be fully appreciated.

The company principally sells small precision disposable diamond tools used to manufacture electronic components and devices which it either manufactures or purchases from exclusive suppliers. Through East Coast Sales Company,Inc,a wholly-owned subsidiary, the company also serves as a distributor and fabricator of industrial ceramic products and a distributor of "clean room" materials and and supplies primarily used by the electronics and defense industries.

On June 22, 1996, the company purchased all the assets of KBR/LS Technology Joint Venture and placed them in a new Malaysian company division, DTI Tech. This wholly-owned subsidiary manufactures products sold by the other two subs inclusive of hubbed and hubless diamond-coated nickel-dicing blades. In effect a start-up operation, it will also sell to an Asian base of semiconductor manufacturers.

The disposable tools sold by the Company to more than 400 customers include: dicing blades and scribes which are the tooling components of precision electronic saws and scribers, respectively, used for cutting circuit chips from silicon wafers and ceramic substrates, for cutting shapes and forms principally out of porcelain and ceramic molds in the manufacture of false teeth, and for cutting ferrite materials for the computer industry; and dressers for the shaping and forming of grinding wheels in the machine tool industry. Industrial ceramic products and clean room supplies round out the company's major product lines as of the fiscal year-end.

Currently around 11 million shares outstanding fully diluted-52 week share price from .05-.96. For the year ending 1 31 97, net sales were $1.6 million and net income was $ 213K or .024 cents/share, an approximate increase of 28.4% over 1996 and a loss of $420K. At year end the stated book value was .075 cents-Trailing 12-months for fiscal 97 actual PE equalled 4.6X.. All this is history!!

The first quarter of fiscal 98 ending 4 30 97 sales increased to $427K from $376K an increase of 14%. Net income was down slightly, that is $33.3K from $50.2K.. Management does not believe that the 1st quarter earnings should be compared because of acquisition and start-up cost in Malaysia.

*****Second quarter #'s are due out within the week or so--management states that sales will be at record levels with record earnings. We anticipate sales will surpass $ 490K and earnings/share will come in at around .01.

Estimated year-end results again will be record with record sales and earnings. Management anticipates $ 2 million in sales and .04 cents/share.

When you consider that SETO currently trades at .11- a value oriented investor has to take a HARD LOOK! Our estimated PE for fiscal 98 equals 2.75X,PSR equals .60 and the Book value will equal around .115 cents, LTD only $277K and NOL is over $1. million.

BOTTOM-LINE--This opportunity looks very cheap.. If SETO was to trade at only 10X earnings, then a .40 cents stock could be inorder- a far-cry from current levels--and this still would not be expensive!

Management has also expressed interest in additional growth via acquisition. We understand that a few candidates are being considered and are beyond the initial stages of discussion.

We have a fundamentally cheap, obscure and a high tech opp that offers investors limited downside risk with attractive upside potential..At current levels SETO should belong in all mini-micro- cap portfolio's.

Corporate # 914-273-1400 Broker--Mike Chesler 1-800-331-1355


As you recall our last newsletter had a special section on Microcaps. CHECK IT OUT!

                               featured price      now

Visual Telephone    VTPI          .10              .53
Semicon Tools       SETO          .07              .11
Platforms           PLFM          .08              .36
IEH Corp            IEHC          .31              .44
Diversified Corp    HIRE         $5.00            $6.50
Industrial Tech     INTI          .18              .15
*********************Latest E-mails****************************
Global Spill        GEGI          .40               .50
Computer Devices    CTDVB         .40               .56
Inotek              INTK          .94              1.125

We anticipate that by Sept 10th or so our "new" Sept-Oct 1997 Newsletter will be on-line-- We ofcourse will notify all E-mail subscribers.

Inaddition- within the next newsletter we will be recommending a low-priced investment opp that deserves a HARD LOOK! If you like the companies that we have been featuring recently--you will love this one..

Finally, Our HOTLINE 1-900-990-0909ex 192 has been discontinued! We now have a free # 1-888-711-7338 In order to access this # you must call 1-614-439-7375 and pay a $10 set-up fee ( $2/minute-usually 10 minutes and can listen to only what you like and only be charged for the time spent.)



If you do not wish to receive this E-mail any longer just return to saadvisory.com and go to the "FREE UPDATE" Bar and follow the directions!!

Yours Truly,,William Velmer

Computer Devices phone#5086634980 (ctdvb)

For more information please visit our site www.saadvisory.com and go subscription section. Don't forget we also have our 1-900-990-0909 ex 192 ($2/min) up-to-minute HOT-LINE.

Copyright © 1997 S.A. Advisory