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, +1-917-639-4033, or Web site: http://www.paulsoninvestment.com/

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