S.A. Advisory E-Mail Update

September 27, 1999

Subject: New Buy Recommendation for Sept 27, 99--S.A.Advisory-AFPC

Dear E-mailer's:     http://www.saadvisory.com

We have not been paid by any listed security within this e-mail message!  We may buy,
sell and/or hold any listed investments within this message!

                                     NEW BUY RECOMMENDATION

                                         AFP Imaging Corp.  (otc-bb---afpc)

Business; Manufacture and distribute a line of free standing and tabletop medical, dental
and industrial X-ray film processors.  Also --a filmless digital dental radiography system
based upon on x-rays and electronic imaging technology.  Also manu and dist. intra oral
video dental cameras. Also a line of digital and analog multiformat compact cameras to
permanently record and document the images produced during diagnostic examinations.

R &D------fiscal        99                           98                            97
                  $1.2 million                      $910K                          $776K

Backlog-- June 30th             99                             98
                          $4.3 million                    $2.3 million

5 year rev and earnings(loss)
           99              98                 97                96                95
       $29 million     $33 million       $37 million      $36 million        $26.5 million
           (.24)        (.34)                .16               .08               .12

price range             99              98               97
                      high .75       high $2.75      high $2.88

For the fiscal 99--year ending June 30th

$29 million and loss of .24-----For the nine months $21.8 million and .21 loss.  For 
the fourth quarter rev was up from the third $7 million from $6.7 and losses dropped
dramatically from .13 to only .03.. NOTE:  much of losses from write-down of goodwill!

At present:  Book value around .30 ( not including the the remaining $2 million in goodwill)
 IMPORTANT:  Management conversation today-- guidance of $30 million in sales for fiscal 00
 and net income/share of .08-.10--We will use these numbers in our calculations.  NOTE:
These are only estimations--

Recommended price this morning to our phone subscribers ( we call you with the recommendation-
for more information concerning the SUPER FAST PHONE SERVICE-call us 801-272-4761) was .32

Preferred E-mailer's informed this afternoon 11 am pacific time

We will monitor this stock --AFPC in our model portfolio for % gain performance.

Est PE -----3.5 for fiscal 00
Est PSR----.10
Book -----1X -actual

Management quote," A small price increase was implemented on some products during
July 99- which should help to improve the gross margins in fiscal 00!"  Found within
the latest 10K.

NOTE:  New Corporate year-end report being released from company- to be released within 1 week
to 10 days -Should add more positive news to the fire!

NOTE:  First quarter should be released with 2 weeks or so.

More stuff:

company has reduced debt as well as reorg. the debt!
The company is atleast 21 year old!

When you consider the fact that this company has been in business for many years, fully reporting
with the sec, has a very attractive est. PE & PSR , stated book value, large backlog, trading
near 52 week low and atleast 5 year low, new products being developed and released, record amount
of R & D being spent and ofcourse AFPC is totally underfollowed and unknown.    We rate AFPC
with a Strong BUY  Recommendation!!!!  If the company can meet est. earnings for fiscal 00--we
see AFPC shares reaching the $1.00 -$1.50 within the next 12 months!  We believe that AFPC
has entered a "NEW" rev and earnings cycle--This looks like the bottom--Only has a $3 million

broker contact: Mike chesler  18008901629
corporate #    1914926100

2.  ARTM---earning looked great -.22 for the year.  We place a hold on this issue
at this time!   NO! guidance from PR or IR!  The press releases from this company
are less than terrible!--We remain nervous about the business model!  We also disliked
the purchase of shares from dnkt and finally-we are also concerned about the planned
144 shares from William's wife!!  We will not commit more funds until  management
begins to understand that the shareholders are important and that they need to be 
kept informed properly!

3.  Within the "market Comment" section of the July/August 99 newsletter --we recommended
    NEM and ASL-gold stocks---If you purchased them during that time period--you are being
    rewarded today--nem up around $5 to $27 3/4 and asl $1.69 to $9.125.  Should have
    more  upside on Tuesday as Brokerage firms change ratings on this group!

4.  TELS-- up from our recommendation of .21 during July/August 99 newsletter--currently .42
    Merger being announced soon--look for more upside.

5.  YARC---Internet related--We do not have many Internets--This one we like alot!  See fresh
    new released today.  Great speculation for .26--Honest and shareholder friendly. We have
    said it before!!  This looks like a SLEEPER!

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