Optimism in Small-Cap Markets for 2004

Optimism in Small-Cap Markets for 2004
Investment Executives Polled at Annual Paulson Investment Conference 


NEW YORK, Nov. 18  /PRNewswire-FirstCall/ -- Last week, Paulson Investment
Company, Inc. (Paulson Investment) polled executives at the 26th Annual
Westergaard SmallCap Conference regarding their outlook on small-cap markets in
2004.  98 percent of respondents expect growth in small-caps in 2004, with 56
percent anticipating significant growth and 42 percent moderate growth, rather
than negative or no growth.

"Our goal for the survey was to identify what the investment community
anticipates in small-cap market activity in 2004, including growth in industry
segments and investment banking," said Chet Paulson, chairman and founder of
Paulson Investment Company.

Industries to watch

When asked what three small-cap sectors they anticipate will be most active in
2004, nearly 70 percent of respondents cited biotechnology, pharmaceuticals, and
health care industries.  Closely trailing was the Internet content and commerce
sector which was selected by 66 percent of respondents and the software,
communications, security and energy industries which were each selected by 30
percent of respondents as being the most active.

Investment banking activity

Almost all respondents expected to see small-cap investment banking activity
increase in 2004.  More than 21 percent of respondents predicted 0-20 percent
growth.  40 percent anticipated growth of 20-40 percent in financing activity. 
The remaining 39 percent of respondents expected growth of more than 40
percent.

Socially responsible investing

Additionally, investors are beginning to consider socially responsible practices
when looking at potential investments.   54 percent of respondents said that
these practices affect their investment decisions.

Conference overview

Paulson Investment hosted more than 500 attendees at the Westergaard SmallCap
Conference in New York City on Nov. 11.  Founded in 1978 by John Westergaard,
this conference provides emerging growth companies with a forum for presenting
to investment professionals and offers insights into trends in the smallcap
marketplace.  This year's keynote speaker was Lawrence Kudlow, co-host of CNBC's
"Kudlow & Cramer."  Companies who presented at the conference included:

   AdStar (NASDAQ:ADST)
   AVI BioPharma (NASDAQ:AVII)
   Bonso Electronics (NASDAQ:BNSO)
   Charles & Colvard (NASDAQ:CTHR)
   CytRx Corporation (NASDAQ:CYTR)
   DayStar Technologies (not publicly traded)
   Digital Video Systems (NASDAQ:DVID)
   Genio Group (OTC.BB: GNOI.OB)
   Global Axcess Corp. (OTC.BB:GLXS.OB)
   IMPCO Technologies (NASDAQ:IMCO)
   I-Sector Corporation (NASDAQ:ISEC)
   Microvision, Inc. (NASDAQ:MVIS),
   Milestone Scientific (AMEX:MS)
   Pacific CMA (OTC.BB: PCCM.OB)
   Pacific Mercantile Bancorp (NASDAQ:PMBC)
   Path 1 Network Technologies (AMEX:PNO)
   Pro-Dex (NASDAQ:PDEX)
   Q Comm International (AMEX:QMM)
   Quantum Technologies (NASDAQ:QTWW)
   SuperGen, Inc. (NASDAQ:SUPG)
   TASER International, Inc. (NASDAQ:TASR)

  About Paulson Investment


Paulson Investment (http://www.paulsoninvestment.com/) is a national leader in
public offerings of small and emerging growth companies with capital needs of $5
million to $40 million.  It has been the managing underwriter of more than 145
public offerings, yielding approximately $950 million for client companies since
1978.  Paulson Investment was founded in 1970 by Chet Paulson and is located in
Portland, Ore.

The foregoing is for informational purposes only and is not to be construed as
an offer to sell or a solicitation to buy any securities mentioned in this press
release.  Paulson Investment Company was the managing underwriter for one or
more public offerings for some of the companies mentioned in this press release.
 Paulson Investment Company may make a market in the securities of the companies
mentioned in this press release.  These markets may, however, be discontinued at
any time without notice.  Individuals associated with Paulson Investment Company
may hold securities of the companies mentioned in this press release and may
increase or decrease such holdings without notice. 

DATASOURCE: Paulson Investment Company



CONTACT:  Ryan Leverenz, [phone], or 



Web site:  http://www.paulsoninvestment.com/ 

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