We note Mr. Schultz recent internet comments (08/23/2003) regarding
his experience with Fischer Panda Generators. Mr. Schultz has provided
a selective commentary on his situation and has failed to provide the
full story. Please see full details below.

Fischer Panda responded and recorded all the details surrounding Mr.
Schultz' complaints on an internet posting Feb. 06, 2003 on
www.macnaughtongroup.com.
The summary of this posting concluded with the following summary:
Fischer Panda has tried everything to resolve the issues with Mr.
Schultz' generator which was purchased in August of 1999. In
frustration we eventually offered Mr. Schultz 3 options including one
which would replace his Panda 4200 with an equivalent competitor
generator. Mr. Schultz declined the offer and chose to pursue his
claim through the courts.

Note: The warranty on Mr. Schultz generator engine had long expired,
and the after sales support and settlement offer made by Fischer Panda
Generators far exceeded the terms and conditions of the three year
warranty covering this generator.

After the Fischer Panda service manager visited Mr. Schultz' boat, an
additional communication was sent on May 21, 2003 regarding a problem
with his installation. The communication included a major
recommendation regarding his installation and responded to his
questions regarding the cause of a broken valve spring: A summary of
this response follows:

After reviewing the PMS04-990905 installation, we are concerned that
there is still a great potential of water ingestion from over
cranking. The exhaust hose rises vertical for about 3 feet and then
bends horizontally (with an initial slight upwards angle) into about 6
feet of hose. Then hose dips slightly about 2 feet to thru-hull.
Thru-hull is about 14 inches from the water line. Bob will contact you
next week regarding your installation. We recommend that in the
interim special care is taken to avoid over cranking." (Mr. Schultz
subsequently visited the Fischer Panda premise's and was provided with
recommended changes to his installation which would reduce potential
water ingestion.)

We note that you are challenging Farymann's assessment that the valve
springs were split in two as a result of being pitted and rusted. They
state that the reason for the fracture is the result of a corrosive
medium, such as steam within the valve cover. In the absence of
evidence to support your position we are not able to lodge a warranty
complaint on your behalf with Farymann.



Mr. Schultz has chosen to institute legal proceedings for excessive
claims against Fischer Panda and has rejected a generous offer by
Fischer Panda Generators to reach an amicable settlement on this
matter.
We question Mr. Schultz motive in selectively using the internet to
promote his position in advance of the court case.

For a complete copy of Fischer Panda's response to Mr. Schultz, please
visit the site: www.macnaughtongroup.com or a copy can obtained by
contacting .

Sara Jewell

Fischer Panda Generators

TEl: 954-462-2800 Fax: 954-462-2801