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CYBERHAND TECHNOLOGIES INTERNATIONAL INC. _CYHD by yaoyufang

VIEWS: 6 PAGES: 11

									                       February 6, 2006                                                   US / Canada / Australia / China – Technology
                       Bridge IR Group, Inc                                                         Consumer Electronics & Defense

      CYBERHAND TECHNOLOGIES INTERNATIONAL INC. (CYHD - OTC:PK)
  Michael Grobler, CFA                                  Website:        http://www.cyberhand.com                Recent Price:         $0.050
  info@bridgeir.com                                     Exchange:      US-OTC Pink Sheets
  (212) 518-8637                                        e-mail:        Brad.Kitchen@cyberhand.com
 www.bridgeir.com
                                                                                                                SPECULATIVE BUY RATING
                                                                                                                12-Month TARGET PRICE: $0.600

 Main Headquarters                                                  Wireless Ergonomic PC, PDA & Gaming Peripherals Play
 Cyberhand Technologies Intl, Inc.
 Suite # 863                                                    Company Overview
 105-150 Crowfoot Crescent, N.W.                               CyberHand Technologies International, Inc. (OTC PK: CYHD), through its Canadian
 Calgary, AB T3G 3T2                                           operating subsidiary, designs, markets, sells, distributes and provides service for new
 Canada                                                        consumer electronic technologies. Their products such as Game Controllers, Wireless
 Tel: (403) 770 8899                                           Keyboards for PDAs and Smartphones, ergonomic PC mice, Cameras, Scanners and
 Fax: (403) 770 8666                                           software use innovative ergonomic designs and technologies that are superior to
                                                               other competing products in the Personal Computer, Gaming and Military industries.


Cyberhand Technologies International Incorporated.              •   Cyberhand feels it is uniquely positioned to take advantage of three market conditions:
(all figures in Millions)
                                                                    the growing appetite for high-performance adaptable keyboards for PDAs and
52 Week Hi/Lo Range            0.04/2.45                            Smart Phones, the growing awareness of the ill-effects on consumers and
Fiscal Year End                     NA                              employees of computer-related repetitive stress injuries (RSI) such as carpal-
Shares Oustanding                  64.2                             tunnel syndrome, and the demand for the fastest high-end gaming controllers.
Float (approximately)             15.20                         •   The Computer Gaming Peripherals market is estimated to be $6 billion dollars in the
Share price (02/06/2006)
Market Capitalization
                                   0.05
                                    3.2
                                                                    U.S. alone and growing at 34% year over year.
Average Volume (3 months)         0.325                         •   Cyberhand’s Ergonomic Computer Mice, will be a very strong competitors in a market
Insider Ownership                   NA                              valued at $570 million by 2006.The IDC research organization projected that 63.8
Institutional Ownership             NA
Enterprise Value                    NA                              million computer mice will be sold in the U.S. in 2006. Cyberhand is targeting a
Total Debt (09-30-05)               NA                              minimum of 2% of the total US mice market, or roughly 1.27 million units.
Total Cash (09-30-05)               NA
                                                                •   The wireless keyboard (Pocketop) has won several awards and will be a peripheral
                                2004        2005     2006           product to the PDAs & Smartphones. The handheld market is projected to be worth
                                                                    $35 billion, experiencing a global growth rate in the region of 38%.
                              FY2004 A     FY2005 E FY2006 E
Earnings Per Share (EPS)           NA           NA      0.02    •   T2 is the largest online gaming operator in China and this company has agreed to
                                                                    distribute CYHD's Cutting-Edge Game Controller. The product is branded and optimized
Book Value ($/share)
                                                                    for T2's targeted 100 million online gaming customers. CYHD believes that T2
                             FY2004 A FY2005 E FY2006 E             expects to distribute CYHD's controllers to at least 1% of T2's targeted 100 million
Total Revenue                     NA        NA    12.260            online gaming users over the next 2 years - a potential market of at least 1 million
Cost of Sales                                      9.470
Gross Profit/Loss                 NA        NA     2.790            units. By 2007, Online PC Gamers in China is expected to reach 800 million users and
Operating expenditures                             1.580            CYBH has a target to sell its products to at least 0.5% over the next 12 to 18 months.
Net Loss /Profit                  NA        NA     1.210
                                                                •   Cyberhand Viper™, with AI (Artificial Intelligence) was selected by Sony and
 NA = Not applicable/Not Available.                                 its programming capability is compatible with Playstation II games. The Viper™
  A = Actual Reported figures       E = Estimates                   is a high performance digital game controller which is 40% more responsive than
                                                                    competing devices and allows multiple units to be used by the same player
                                                                    simultaneously. It has the ergonomic protection to completely protect the user from
                                                                    the effects of Carpal Tunnel and other RSI, while playing for extended periods.
                                                                •   CYHD engaged in distribution contracts with several companies in 2005 which include:
                                                                    VisionPoint Pty Limited. (Australia, New Zealand, Pacific Rim & Asia), Connection
                                                                    Devices (United States) and Brockton Capital Corporation (Canada).
                                                                •   CYHD management believes the company should reach its forecasted revenue
                                                                    objectives over the next 18 months of $25.6 million, comprised exclusively of sales of
                                                                    Viper™ game controllers.
                                                                •   Shares appear attractive given the various distribution agreements that are in
                                                                    place and hyper-growth rates in markets for its products. CYHD is poised to
                                                                    capture significant share of the game controller market, that is benefiting
                                                                    from the mushrooming Chinese Online Gaming industry. Global PC Mouse
                                                                    Sales is expected to reach 233 million units in 2006 of which CYHD targets at
                                                                    least 1-2% market share. Strong strategic alliances with Sony and T2, the
                                                                    unabated growth in the handheld market should fuel demand for peripherals.
                                                                    We expect revenues will be amplified and transpire into a higher CYHD
                                                                    valuation that may be even further augmented by an order from Defense
                                                                    contractor(s). See INVESTMENT THESIS & RECOMMENDATION for more in-
                                                                    depth discussion (Page 9)

                                                                                 See Appendix A-1 for Analyst Certification and Important Disclosures.
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                               (CYHD - OTC: PK)                   Page 2 of 9

COMPANY

Cyberhand Technologies International Inc., incorporated in Nevada, is a leading computer peripheral design company
specializing in innovative wireless ergonomic products for private (mobile & desktop users) and potential military purposes.
Prior to May 13, 2005 the company was operating under the name of NuVoci Inc., but changed the stock symbol and name
from NVCI to CYHD, after announcing a share exchange agreement with NuVoci Inc. In addition, the common shares of
Cyberhand, was split on a 10 for 1 basis, resulting in 64,172,880 shares issued and outstanding.

In July 2005, the company acquired the remaining 64% of the Pocketop Computer Corp., through negotiating for the stake
with Valuecap Investments Inc.'s, formerly Tullaree Capital, Inc. Prior to the completion of this deal, Cyberhand, through a
related subsidiary, effectively controlled all the day-to-day operations of Pocketop for 2 years preceding this agreement.

CYHD has a proficient R&D team and is able to develop new products quickly and progress from whiteboard to production
stage in as little as 90 days, with a complete prototype evolution. All intellectual property and recent product upgrades
which all enjoy full patent protection, has been developed in-house. The company intends to take action to protect its
intellectual property (IP) and fully pursue patent infringements and has already achieved success in this regard.



PRODUCTS

Wireless ergonomic products for mobile and desktop users include:

• Viper™ high performance Digital Game Controller (X Series Controllers)

The Cyberhand X3 is a gaming controller that builds on the advanced ergonomic design of Cyberhand X2, giving the user an
additional control axis. Consisting of 10 buttons (3 axis and 4 programmable buttons), it can be used as a stand-alone
controller, or in combination with any Cyberhand device, a keyboard or mouse. New features can be added like the rumble
pack, smell generators, biometrics protection and retinal scanners. It is also designed to talk to other Cyberhand devices and
tell the user what it has learned. The product was introduced in June of 2005 and retails for approximately $29.95.

This controller is 40% more responsive than rival products, making it a superior choice for serious gaming enthusiasts. This
product targets the online gaming industry and also comes with a complete range of expansion packs for enhanced versatility
and optimum performance including:


    •   CYHD's proprietary Artificial Intelligence (AI) engine. AI is leading edge user-centric technology that enables the Viper
        to adapt to the gamers playing style by reading movements and skill levels and adjusting accordingly for optimized
        scoring and performance;
    •   Cyberhand's new Cybernetic Link Software™, advanced technology that allows a player to use two controllers
        simultaneously;
    •   Allows a gamer to play with a controller in each hand is a unique feature that greatly enhances the gaming experience
        and sets the Viper apart from other controllers on the market with its ease of use, agility and performance;
    •   Has added protection from the harmful and often very expensive effects of repetitive stress injuries (RSI), including
        Carpal Tunnel Syndrome (CTS) allowing gamers to play longer comfortably.



• Racer™ and Piranha ergonomic computer mouse (V Series protective Mice)

These mice are designed with added feature to protect against carpel tunnel syndrome that is a growing problem in modern
society by being structurally designed to fit in a hand and respond to every hand movement. The U.S. Department of Labor,
reports of Carpel Tunnel Syndrome (CTS) consistently comprise over 65% of all occupational illnesses. CTS requires the longest
recuperation period of all conditions resulting in lost workdays, with a medium of 30 days leave as a result. In the year 2000,
CTS alone amounted to over 250,000 cases and more than $2.1 billion in compensation payments.

CYHD retained the services of two of the world's leading authorities in Kinesiology, Dr. Dan Robinson, PhD and Dr. Evan
Graham, PhD. These two renowned experts conducted scientific research and analysis to document the ergonomics of
Cyberhand products to reduce the occurrence of costly RSI injuries and they assisted to further refine the design of the
products. Dr. Robinson concentrated on the RSI alleviating aspects of the mice, while Dr. Graham was responsible for fine
tuning the mice for optimum performance. His duties included ensuring that the production of the computer mice maintains
Cyberhand's exacting design requirements.
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                  (CYHD-OTC: PK)                   Page 3 of 9

In a report dated December 2002, the IDC research organization projected that 63.8 million computer mice will be sold in
the U.S. in 2006. Cyberhand is targeting a minimum of 2% of the US mice market (1.27 million units) and will focus on U.S.
corporations and organizations by stressing how its new ergonomic mice products can reduce RSI (repetitive stress injuries) in
the workplace and increase productivity with Dr. Robinson and Dr. Graham at the helm of this marketing effort. The V Series
has offers pending to be resold under leading company brands (eg: HP’s Compaq brand), a potential pre-purchase order by a
major office retailer and indications exist for a pilot program for corporate clients by a leading computer services company with
a global reach.


                                                           Do you know...?


                                                           ...how often your hand remains
                                                           tensed on the mouse without actually
                                                           using it?

                                                           Up to 30 times an hour! Total passive
                                                           mouse time can run up to more than
                                                           10 minutes per hour!


 • Pocketop Wireless PDA/Cellular Keyboard (CT4700/9000 Keyboards)

The Pocketop is a wireless, compact, light, foldable, portable keyboard that fits in the same pocket as a PDA (Personal
Digital Assistant). This “same pocket” distinction is a size and form factor innovation that is used to expand the PDA into a full
functional pocket laptop. PDA users can now send and receive e-mail, browse the internet, and perform word processing and
spreadsheet tasks with greater ease.

The Pocketop Wireless Keyboard is a first of a kind innovation and it provides the following benefits to PDA users:


    •   Entry of data is faster and easier than using a stylus pen using the touch typing keyboard that allows large
        amounts of text to be entered;
    •   The keyboard has programmable shortcut keys and one-touch access to important applications;
    •   Half the weight and volume of the market leader;
    •   Traditional touch-typing keyboard functionality;
    •   Easy to use and setup with Wizard-driven software;
    •   Fully cordless;
    •   Compatible with all PDA devices resulting in no replacement cost issues if PDA is upgraded or changed;

                                                                                        This product is patented with the
                                                                                        patent duration valid for 20 years
                                                                                        from August 2001 and has already
                                                                                        received numerous industry awards such
                                                                                        as PDA Keyboard of the Year in 2002
                                                                                        (Computer Shopper Magazine), Best
                                                                                        Travel Gadgets (Travel and Leisure
                                                                                        Magazine – Nov 2002) and Top
                                                                                        Hardware Accessories from PocketPC
                                                                                        Magazine in 2003. The CT4700 is a
                                                                                        latest version of wireless keyboard that
                                                                                        is   compatible with      the   industry's
                                                                                        broadest     selection  of    PDAs    and
                                                                                        Smartphones. The unit is based on the
                                                                                        predecessor Pocketop MP00018 version
                                                                                        that has already sold over 400,000
                                                                                        units in the US Retailing Market
                                                                                        (CompUSA, RadioShack, and Circuit City
                                                                                        etc.).

The latest Pocketop is commercially produced and is generating revenue.
All three products flow through the same master distributors, worldwide (example Ingram Micro), the same retailers and the
same distributors and dealer networks.
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                   (CYHD-OTC: PK)                  Page 4 of 9

• Cylogic Aerospace (Military Products)

Most counter terrorism measures of elimination are high speed, uncontrollable and potentially cause huge collateral damage
when used in metropolitan areas. Most weapons are designed for wide open battle fields not the tight confines of a crowded
city. Cyberhand has the solution required for battling terrorism in cities. The Cylogic missile guidance hardware systems are
based on the combined technologies of Cyberhand's Viper™ high performance game controller and the Racer™ ergonomic
mouse.

The Avenger Smart Missile System with Empath Fire Control is a pioneer design, which offers the operator the ability
to acquire, control and neutralize hostile targets in urban environments. Target acquisition and identification will be
realized utilizing a series of ultra high-speed digital cameras (“open aperture” or OA Technology) and infrared sensors
mounted in the missile's nose section. The camera images are transmitted over a secure wireless network, modified to allow
faster than normal neural processing by the operator and transposed in real time to the operator's visor. Direction control and
target options will be handled by Cyberhand's Viper controllers built into the Empath Fire Control Center. Cyberhand's new
Black Locust Weapon System, part of the company's HIN technology (Hunt, Intercept & Neutralize), is able to track targets
in a given area for hours, days and even weeks, before responding to a command to acquire and neutralize any individual
target. The Black Locust Weapon System is self regenerating, aware of its surroundings, needs no home base from which to
operate and can work individually or grouped for multiple targets.

CyLogic Aerospace set out to complete its Level 5 prototypes of the above systems in 2005 and start limited field trials in 2006.



STRATEGIC PARTNERS AND RECENT DEVELOPMENTS

Cyberhand Technologies finalized a distribution agreement with VisionPoint Pty. Limited of Australia on August 31, 2005,
whereby VisionPoint will distribute Cyberhand's own-branded wireless infrared keyboards to customers in Australia, New
Zealand and Asia. Initial requirements for VisionPoint channel will be a minimum 5,000 units per month and Cyberhand has
delivered the contracts initial stocking order. This agreement coupled with the close proximity of Cyberhand's manufacturing
plants in China, could potentially represent a substantial and extremely profitable revenue stream for Cyberhand and allow it to
establish market share in the region.

CYHD selected Shenzhen TTX Technology as manufacturer for its commercial sales models to allow marketing of its high
performance computer game controller, particularly in the Europe and Asia. Following negotiations, Cyberhand has commenced
building commercial sales models to allow the sale and distribution of its controller. This manufacturing deal with aggressive
pricing sets the stage for Cyberhand to capitalize on the existing popularity of online gaming in both the Chinese and European
markets. The Chinese market has a compounded annual growth rate of 92%. Online gaming is the cheapest form of
entertainment in China and the country's number-one application of telecom's value-added data service.

On September 7,2005 CYHD received an initial commitment for its CT4700 Wireless Keyboards from Brockton Capital Corp.,
who agreed to purchase a minimum of 15,000 units before July of 2006 and 50,000 units per month thereafter. Non-
compliance under the agreement will result in Brockton forfeiting their distribution rights for the product. The company
anticipates that it was the first step in a relationship with Brockton which represents a substantial monthly revenue
stream that will likely be over $2 million following the completion of the minimum unit purchase. Brockton will act
as its non-exclusive Canadian retail computer peripheral market distributor for all CYHD products. In addition,
Cyberhand also signed a distribution contract with Connection Devices for the United States and is seeking a distributor
in Mexico that was targeted for completion by end of Q4 2005. Connection Devices (US Distributor) placed an initial order for
720,000 units of its CT4700 Wireless Keyboards, X Series Controllers and Advanced Computer Pointing Devices, in August
2005 and further committed to purchase a minimum of 30,000 units per month starting in February of 2006 (over
$300,000 monthly revenue stream) and increasing to 100,000 units by March of 2008 (minimum $1 million a month
revenue stream).

On November 8, 2005 the company purchased TriEye Design Inc., a private Industrial Design and Modeling company.
TriEye Design Inc. brings true rapid prototyping and Industrial 3D modeling capabilities to the design department of Cyberhand
Technologies International Inc., allowing the capability to build from concept to solid models. Prior to this deal the company
was unable to have in-house access to this technology that was mainly out of reach and in the hands of larger competitors.
CYBH has sharpened its competitive advantage and flexibility to make on-the-fly changes to its product designs.

The company is now in possession of a complete dossier with all of the intellectual property, including sketch boards, and
future concept drawings and also has ownership of the specialized computer equipment and software that will be
utilized to create its new fourth generation product line. CYBH issued 50,000 Class "B" Non-Convertible Voting Preferred
Shares for 100% of TriEye's common shares to complete the deal.
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                   (CYHD-OTC: PK)                 Page 5 of 9

T2 Entertainment

T2 is the largest online gaming operator in China and this company has agreed to distribute CYHD's Cutting-Edge Game
Controller. The product is branded and optimized for T2's targeted 100 million online gaming customers. Even though the final
terms and conditions have not yet been finalized, CYHD believes that T2 expects to distribute CYHD's controllers to at
least 1% of T2's targeted 100 million online gaming users over the next two years - a potential market of at least
1 million units. T2 expects to launch four to six new online games over the next two years and will offer
customers their own dedicated game controllers featuring Cyberhand's premier technology and design. The
president of T2, Jim Wang, said “We are very impressed with Cyberhand's design and performance specifications. We feel very
strongly that because the game controller is 40% faster than other controllers and incorporates innovative technological
enhancements, our clients' gaming experience will be significantly enhanced.''

Sony Playstation II and Sony's Game Manufacturers

After consulting with the Sony licensing department it was jointly decided that the first release would be a USB game
controller (Viper) with unique custom game applications. The Sony controller will be the first CYHD controller
released with the new AI (“Artificial Intelligence'') engine allowing the unit to read, automatically making adjustments
that will result in improved individual players' scores. The Viper will also come with a complete range of expansion packs for
enhanced versatility and optimum performance including the new Cybernetic link software to allow multiple units to be used by
the same player simultaneously. This high-performance game unit will also have all of the ergonomic protection to completely
protect the user from the effects of Carpal Tunnel while playing for extended periods at the increased performance levels.
Moreover, Sony has agreed to provide access to Playstation II Game Manufacturers, so that the Cyberhand Viper's
programming capability is compatible with Playstation II games.

Lockheed Martin

During August 2005, CYHD decided to spin-off CyLogic Aerospace as a wholly owned subsidiary, which develops the
Avenger Missile with Empath Fire Control and the New Black Locust Weapon Systems. CyLogic Aerospace Weapon
Systems is well positioned to provide the world's fastest controllers, providing the most accurate target acquisition and
generating the best field results. CyLogic Aerospace will begin marketing the complete Avenger System Concept to defense
contractors upon completion of the prototypes. CYHD is preparing its first military submission to be presented to Lockheed
Martin Corporation. The proposal will prototype the world's first 3-dimensional "Fly-By-Wire portable" missile system.
CYHD will also demonstrate the merits of its Viper controller for design applications and the Computer Mice Products for general
applications". All products are adapted from CYHD's existing technology whether for general or military applications. CYHD
management believes the company should reach its forecasted revenue objectives over the next 18 months of $25.6
million related solely to the sales of its Viper™ game controllers.

Early adoption of one or more of its technologies from prototypes by Defense companies or the US Air Force can provide
substantial upside to this guidance.

INDUSTRY AND MARKET OPPORTUNITY

The company’s products are designed to target both the private consumer (PC Gaming, PC and PDA peripherals) and Military
markets. Products have been specifically designed ergonomically and have wireless features. The ergonomic computer mouse
product line, Wireless Keyboard for PDAs and Computer Game controllers all eliminate computer related stress injuries such as
Carpal Tunnel Syndrome (CTS). A recent study found that 3% of adults get the syndrome and more than 200,000
surgeries are performed annually. Its leading game controller has already been selected by Sony for its PlayStation II
games console and by T2 in China which will be available to T2 customers. The Online Gaming Market in China exceeds $1
billion annually and is extremely popular in the PRC. Online gaming is the cheapest form of entertainment in China and is
China's number one application of telecom's value-added data service with a compounded annual growth rate of
92%. International Data Corp (IDC), projects that there will be 800 million On-Line Computer Gamers in China by 2007.
Top Game Box Merchandisers, like Sony with their latest Playstation III, Nintendo Revolution and the new Microsoft 360 X-Box
are ideal partners interested in using CYHD advanced new Game Controller technology. Advanced first person shooter software
companies who submissions demand the highest level of skill sets from their players in the tradition of games like Doom 3, Half
Life, Quake 4, Warcraft and EA provide additional partnering opportunities.

The Computer Gaming Peripherals market is estimated to be $6 billion dollars in the U.S. and Growing at 34% year
over year. Cyberhand’s Ergonomic Computer Mouse versions, will be a very strong competitor in a market valued
at $570 million by 2006. Its wireless keyboards (Pocketop) has won several awards and will be a peripheral product to
the PDA, Smartphone handheld market, that is projected to be a $35 billion market, experiencing a global growth rate
in the region of 38%. Thirdly, the company is able to forge potential strategic partnerships with one or more leading edge
military manufacturers like Lockheed Martin, Boeing, General Dynamics, Raytheon, and Rockwell Collins or even the
Canadian Bombardier for it military applications. These defense contractors and Aerospace companies are constantly
searching for new unique fighting systems for the US defense force amongst other.
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                            (CYHD-OTC: PK)                       Page 6 of 9

Market Trends Computer Peripheral Market

The industry for computer mice currently follows the general trends for the PC Industry since 70% of the yearly mouse volume
is comprised of pull-through Original Equipment Manufacturers (“OEM”) integrated PC sales, with the remaining 30% reflecting
sales in the after market on retail level. Of the OEM PC volume, 75% reflects desktop computer sales which count directly
toward mouse volume where 20% of buyers elect a mouse upgrade. Upgrade decisions can add 40%-60% to OEM
margins on mice priced from $30 to $60. The retail growth rates for mice continue to outpace the OEM growth rates in
both volume and margin. This trend is ascribed to buyer decisions to upgrade PC components in an attempt to further
productivity and performance from existing PC spending. The table below outlines the growth progression of new mouse sales
since this product's introduction to the marketplace in 1975. In addition, the table provided information to establish market
size and direction with 2006 forecasts. The data show that mouse sales are indirectly tied to the growth of PC sales and also
influenced by the size of the established base (for example: PC hardware upgrades) which should be monitored also.


U.S. and Worldwide PC Market Growth
(All figures shown in millions)
                                       1975       1980       1985       1990       1995       2000       2001       2002        2003         2006
US Mouse Units (Total)                  0.0         0.8        7.1       10.2       23.0      53.0       47.1        44.6        48.1        63.8
US Mouse Units (OEM)                   0.03         0.6        5.0        7.1       16.1      37.1       32.2        30.3        32.3        42.2
US Mouse Units (Retail)                0.01         0.2        2.1        3.1        6.9      15.9       14.9        14.3        15.8        21.6

US New PC Sales (millions)             0.04        0.8        6.6         9.5       21.4       50.1       44.2       41.5       44.8          58.6
US New PC Revenues ($billions)         0.05        1.5       17.2        24.5       56.8       95.9       78.2       71.2       77.0          99.1
US PC Installed Base (millions)        0.04        1.4       19.0        51.0       93.0      176.0      178.0      170.0      184.0         240.0

Global Mouse Units (millions)          0.05        1.2       11.8        26.0       75.0      148.0      143.0      146.0      158.0         233.0
Global Mouse Units (OEM)               0.04        0.8        8.3        18.0       53.0      104.0       98.0       99.0      106.0         153.0
Global Mouse Units (Retail)            0.02        0.4        3.5         8.0       23.0       44.0       45.0       47.0       52.0          80.0

Global PC Sales (millions)             0.05        1.1       11.0       24.0        70.0      140.0      134.0      136.0      147.0       216.0
Global PC Revenues ($billions)         0.06        3.6       30.0       71.0       156.0      270.0      238.0      232.0      251.0       358.0
Global Installed Base (millions)       0.05        2.1       33.0      100.0       232.0      562.0      598.0      639.0      691.0      1071.0

Source: Mouse Information: IDC Report December 2002/US PC revenue information: Gartner Dataquest Report October 2002/PC Sales Information:
eTForecasts Market Research Report May 2002.


The OEM channel trends continue to experience severe margin pressure resulting from a 2-year-old industry price war, initiated
after the merger of HP and Compaq, to capture share and drive out niche OEM providers. Dell has been able to grow share
from 19% to 29% taken mainly from HP-Compaq, but most recent quaterly results show HPQ regaining lost share. Micron and
NEC were added to the list of large-scale casualties.

OEM margins are more readily controlled through component supplier pricing than direct operations, which
resulted in the peripheral market including mice has suffering the greatest. Standard peripherals are becoming almost
non-existent as giveaways as new norm for OEMs to lure buyers. Therefore thus the mouse industry has shifted its focus to the
consumer opting for upgrades such as optical and wireless mice and other enhancing features. The retail channel trends
continue to demonstrate stronger relative demand in part due to stretching of the underlying PC investment through peripheral
upgrade avenues.

The mouse industry, led by Logitech and Microsoft with a combined 70% share, is searching for fresh innovation with
which to capitalize on the growing demand for mouse upgrades on both OEM and Retail fronts. The leadership of these two
players will likely continue as long as economic and OEM pricing challenges prevent them from retiring their low-end high-
volume models. In 1999 alone, Logitech mice both branded and unbranded accounted for 82% of all products sold, but only
revenue on a percentage basis was only 40%.

Market Trends Handheld Computer Device Market

The handheld device market is the fastest growing consumer electronic market in history. According to IDC, unit
shipments of PDAs rose from 2.8 million in 1998 to 9.3 million in 2000. IDC expected that number to maintain 39% per year
growth to 33.6 million units by 2004. Put differently, the handheld market grew from $1.0 billion in 1998 to $3.6 billion in 2000
and IDC predicted growth of 31% per year to $10.8 billion in 2004. Overall technology sales have slowed down in recent years
and has dampened earnings of device manufacturers, but industry analysts point to the huge untapped potential of the
corporate enterprise market and the emergence of the more robust Windows-based devices such as Palm Treo and
others, and next generation 3G adoption, as evidence that handheld device sales will continue their hyper-growth
unit sales into the foreseeable future. For CyberHand Technologies, a related manufacturer of products for handheld
devices, the market opportunity exists to benefit from demand for new computer peripheral platforms.
    CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                  (CYHD-OTC: PK)                       Page 7 of 9

FINANCIALS

No history of past financials is available on the SEC website. Due to the lack of such filings we are unable to provide comments
or analysis on historical financial performance or measures.

We have obtained the following revenue and earnings forecast and budgets from the company that provide an outlook of the
next 24 months. The following revenue and earnings forecasts are based on the 2 calendar years immediately
following a planned funding in the spring of 2006 and are based on the following assumptions;


      •   Sales of Products based on IRAP Marketing Assessment Project Report (August 15, 2003).

      •   Obtain minimum target of 2% of U.S. Market for mouse products by end of Year 2.

      •   Sales of Pocketop keyboards anticipated to double current levels once the keyboards have been adapted for the
          cellular and Pocket PC markets and appropriate Marketing Plan implemented.

      •   Revenue from Ergonomic Computer Mouse and Game Controller begin approximately 4 months after receipt of
          funding – this period allows for manufacturing ramp up.

      •   Cost of Pocketop keyboards and delivery and fulfillment expenses reduced slightly in Year 2 due to synergies realized
          in the roll-out of the three complete product lines – anticipated product lifespan 18 months to two years.

      •   Pricing Assumptions [in $US]
                               Product                          Wholesale              Cost of Goods         Profit Margin
                                                                Price
          Pocketop Wireless PDA/Cellular Keyboard               $     42.00            $         25.05               41%
          Keyboard Software Upgrades                            $     10.00            $          5.00               50%
          Eliminator Gaming Controllers                         $     25.95            $         15.40               41%
          Piranha Ergonomic Mouse                               $     26.95            $         15.40               43%
          Racer Ergonomic Mouse                                 $     34.95            $         19.00               46%


Pro Forma Profit and Loss (US$):                                              Year 1                           Year 2
                                                                           Units            $                Units           $
Sales
•    Pocketop Wireless PDA/Cellular Keyboard                            120,000            $5,040,000     160,000            $6,720,000
•    Keyboard Software Upgrades                                          60,000                 600,000    60,000                600,000
•    Eliminator Gaming Controllers                                       76,500             2,063,051     139,500             3,620,051
•    Piranha Ergonomic Mouse                                            144,226             3,886,918     341,846             9,212,777
•    Racer Ergonomic Mouse                                               19,174                 670,132    62,954             2,206,277
                                                 Revenue Sub-Total:     419,900        $12,260,101        661,300          $22,359,105


Cost of Sales                                                                              $8,022,904                       $12,400,380
Distribution, Fulfillment and Inventory Expenses                                            1,451,600                         1,982,600
                                                     Gross Profit - $                   $2,785,597                          $7,976,125
                                                   Gross Margin - %                        22.70%                                35.60%

Operating Expenses
    Marketing & Sales                                                                       $805,752                         $1,480,600
    Technical Sales, Implementation & Customer Support                                          155,000                          310,000
    Product Testing, R & D and General Product Development                                      120,000                          400,000
    General Production Engineering /New Prototype Production                                    280,000                       1,375,000
    General and Administrative expenses                                                         220,000                       1,100,000
                                            Total Operating Expenses                    $1,580,752                          $5,565,600
Net Profit before Taxes:                                                                $1,204,845                          $2,410,525
    Taxes – Nil (use Pocketop’s Tax Loss Carry Forwards)                                             0                                0
                                               Net Profit After Taxes                   $1,204,845                          $2,410,525
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                    (CYHD-OTC: PK)                  Page 8 of 9

RISK FACTORS /CONCERNS

The various operating units have inherent risk. The company’s future is largely dependent upon the success in the adoption
and rollout of all of its products and executing its business plan. CYHD’s business development is substantially dependent on
the expertise of its management team and directors, the loss of which could materially adversely affect future anticipated
results. The company is still considered to be early in its life cycle and has no reported financials.

The company may not be able to generate or obtain sufficient funds to operate its business. Management alerts to the fact that
liquidity may be insufficient to support the expansion and business plans of CYHD. There can be no assurance the company will
be successful in its effort to secure additional financing in the Spring of 2006. Trading in the shares will continue to be subject
to major fluctuations for the foreseeable future. The stock is thinly traded at prices below $0.10 and selling of small positions
could have a negative impact on the share price in absence of sufficient liquidity. We caution that historical volume
activity on CYHD has been noticeably light and trading volumes may not improve in the coming months. Major
dilution of common stock can occur if company issues large blocks of common stock/options exercised into common stock, that
can negatively impact on the value of the shares either theoretically or if sold in the open market. NASD and SEC Regulations
covering rules on Penny Stocks apply for CYHD. The company may from time to time be parties to various legal actions,
litigation or legal claims or patent infringement lawsuits.

MANAGEMENT* AND ADVISORY BOARD**

MANAGEMENT

CEO, President & Director, Michael Burke*

Michael Burke is responsible for technology commercialization of CyberHand's patented assets into components and working
prototypes utilizing these technologies. Michael has extensive experience in the development and structuring of start-up
businesses, specializing in technological integration, finance, project and corporate development with a successful track record
of creating shareholder value. Honored member of the 1997 Edition of Who's Who and recognized among top executives in
North America for the year.

Chairman & Director, Brad Kitchen*

Brad Kitchen, age 42 is responsible for the financing of the commercialization activities and directing the public merger
activities of the Company. Mr. Kitchen graduated with an MBA from McGill University in Montreal, Quebec in June of 1987. Prior
to receiving his MBA, Mr. Kitchen obtained a B.Ap.Sc. (Civil Engineering) from the University of British Columbia in June of
1985. After graduating from McGill University, Mr. Kitchen became a financial product oriented Investment Banker. Specific
experience in this area included foreign and domestic debt markets, cross-border financings, asset-backed securities,
derivatives and interest rate sensitive equity products. This experience was obtained over an eleven-year period when he was
employed in Toronto, Ontario as a Vice-President and Director at CIBC World Markets (formerly CIBC Wood Gundy Securities
Inc.) from September 1988 to November 1996 and TD Securities Inc. from November 1996 to April 1997. In April 1997, Mr.
Kitchen formed PBK Financial Engineering which has continuously advised small to medium sized companies on corporate
finance issues. These topics range from day-to-day working capital allocation to obtaining access and providing ongoing
management of a company's funding requirements via the public and private capital markets.

Barry L. Bridgman, Strategic Development **

Prior to joining the CyberHand Advisory Board, Barry was Executive Vice President of Viasystems Group, Inc. where he was
responsible for all global business functions and accomplished an internal growth from $200 million to $1.5 billion in revenue
with 32 global manufacturing sites and over 25,000 employees in the Americas, Europe and China. His earlier roles at
Viasystems included President of the Americas as well as President of the Global PCB and Telecom divisions. Prior to
Viasystems, Barry was Senior Vice President and General Manager of the Americas of Berg Electronics where he catapulted the
company from the No. 7 position in the connector industry to No. 3. Barry holds a BS in Chemistry from Virginia Polytechnic
Institute.

William E. Cloutier, Operations & Business Development **

Prior to joining the CyberHand Advisory Board, Bill was the Global Account Manager with Viasystems Technologies Corp and
responsible for Global EMS growth strategies where he broke down sales barriers with the first-ever sole source contract for a
leading OEM and realized $100m combined growth for that company's U.S., France, and Asia operations. Prior to Viasystems
Bill held senior Sales & Marketing and Business Development positions with several large Global EMS companies where he
pioneered “right fit” manufacturing solutions through customer partnerships. Bill has extensive experience in product
development, new product introduction (NPI), and large-scale production utilizing North American and Asia Pacific
manufacturing resources.

Elliot Lipsey, Business Development **
 CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.                                      (CYHD-OTC: PK)                  Page 9 of 9

INVESTMENT THESIS AND RECOMMENDATION

Our analysis suggests that Cyberhand Technologies International, Inc. is an interesting speculative play among micro-cap
companies offering exposure to the investor on wireless PDA, and Smartphone peripheral product demand
expansion and secondly its ergonomic online gaming console is expected to be a major boon for the company to
generate sustainable revenue streams. Its ergonomic advanced mice for PC use is poised to expect to make a
definable impact on the global industry, which is forecasted to be over 230 million units in 2006. Some of its IP are
being developed for military use and are being employed in Avenger Smart Missile System with Empath Fire Control and
the Black Locust Weapon System. These systems will be showcased to large defense contractors such as General
Dynamics and Lockheed Martin in the coming calendar year that offers an additional avenue of diversification that adds to the
attractiveness of the play. Given the superior features of its Viper™ gaming consoles, Cyberhand is positioned to becoming a
market leader in this space which has potential to build long-term shareholder equity and lift shareholder recognition.

Both operating and financial risk involved in investing in a young technology company are typically high and should be
considered by investors. In this case the risks are tied to the uncertainty surrounding effective market penetration through its
various distributors and efficacy and speed of adoption by individual consumers, corporations and Defense companies. While
competition in the market for several of its products remains intense, we believe that CYHD will be able to establish a
meaningful industry presence through is high quality technical team, distribution partnerships, innovative ergonomic solutions
and management’s expertise. Readers should understand that there can be no assurance that the company will be able to
fast-track its intended transition towards full commercialization of all of its developed products that will flow
through directly to the top and or bottom line.

We therefore only recommend investors that have a high tolerance for risk that are able and willing to forfeit either most or
all of their capital in search for extraordinary returns, to consider investing in the shares. Also, in our view investors willing to
commit capital to CYHD should do so with absolute minimum 2 year investment horizon, but preferably longer, to allow
ample opportunity for growth to emerge until broader price discovery can materialize within the investment community that
will allow the value behind the wireless handheld peripherals, ergonomic mice, defense systems and gaming
consoles of Cyberhand to be unlocked. Short term we see upside for CYHD shares after its recent stagnation.
Presently the risk factor tied to the uncertainty surrounding receipt of additional funding or delays in such
funding, has plagued the rating of the shares. This is likely to remain the case until adequate funding is secured
that will satisfy concerns that may be present, or resurface in the investor community. We believe that this will act as a short-
term headwind in the absence of other positive news. More financial disclosure could benefit the rating of the shares.

Under the assumption that capital raising plans are successful and expecting revenue of $12.2 million during the
12 months following funding in Q1/Q2 of 2006, gross margins are attained and operating expenses are well
controlled, we are of the opinion that CYHD stock has major upside potential. Given the recent global alliances already
forged for its consumer product side, initial commitments received and prospects for larger repeat orders, Cyberhand is
projected to generate more than $22 million in revenue for FY 2007. We believe CYHD can generate positive EPS of 2c per
share in the 2nd year following its planned funding. Assigning conservative price to sales multiple, using Computer
Peripheral peer comparisons, of 2.7 to 3.2 times, and using a Forward PE multiple of 25 to 30 times earnings, we
arrive at a bold market valuation (using this blended approach) looking ahead 12 months (and applying a discount
factor for time value of money) ranging from as low as $15 million to as high as $38 million.

Bearing in mind the risk associated with product rollout and product introduction and also allowing a discount for an OTC issue
and other risk factors e.g. liquidity, the upper limit of this market capitalization range may need to be tempered. All factors
considered, we anticipate a stake in CYHD will have substantial upside potential in the coming 12-24 months. We
HIGHLIGHT to the reader that this view is formulated under the assumption that the company can attain our
revenue expectation of at least $12 million over the next 12-15 months. Moreover, we believe that the present market
for CYHD shares is far from efficient, does not fully reflect the added revenue possibility that we see for orders from defense
contractors that are not factored into these revenue estimates. We regard the present market capitalization as modest
trading at only 0.26x FY 2006 revenues.

Under these assumptions we initiate coverage on CYHD with a SPECULATIVE positive rating. Risk to our
recommendation include amongst other, failure to cultivate consumer awareness of its products in the near term, low
penetration rates into the smartphone, PC, PDA and gaming markets and , slow rate of adoption and lag time by corporations,
consumers and defense companies for product offerings and inability to deliver revenue goals, timing delays in implementation
of CYHD product rollout or inability to contend adequately with stiff competition. Also, any inability to obtain necessary
financing from capital markets when needed, to continue its business projects and/or major share dilution that can occur, if
large quantities of shares are issued to extinguish debt or paid for services, are some additional factors that will counteract
price appreciation potential or cause shares to decline in value. We would caution that given the size of the company and risks
involved, overall we advise positions be limited below 5% of the client’s total portfolio size.




                                                             See Appendix A-1 for Analyst Certification and Important Disclosures.
CYBERHAND TECHNOLOGIES INTERNATIONAL, INC.   (CYHD-OTC: PK)   Additional Notes




PRODUCT EXAMPLES
ANALYST CERTIFICATIONS                                      APPENDIX-A1


The research analyst, who upon request wrote this report, certifies that the views expressed in this research report, accurately
reflects his personal view about the subject company. The analyst also certifies that he does not own or have any beneficial
interest in shares of the covered company, also that no part of his compensation was, is or will be directly or indirectly related
to the specific recommendation or view expressed in this report. Based on the facts that were provided, the industry trends
present and sources of information used to produce this report, it is my best opinion and reflection of what the company’s
rating and share appreciation potential could be once research coverage is widely adopted. Investors are urged to consider
this report as only a single factor in making their investment decision. Information, opinions or recommendations contained in
this report or research note are submitted solely for advisory and information purposes.


Clients of the analyst firm collectively own less than 1% of total shares outstanding of the issuer. For securities recommended
in this report the firm is not a market maker, but may from time to time provide bids and offers and may act as principal in
connection with such transactions to facilitate trading liquidity or execution. Bridge IR Group, Inc has been compensated
$6,000 from third party BZ-Com, Inc. The firm of the analyst does not actively seek to do investment-banking business with
the company covered in this research report. This independent analysis and judgment relies on material supplied by the
subject company and other sources, such as SEC filings believed to be reliable. The analyst that prepared this report cannot
guarantee the information contained herein for accuracy or completeness.

All information contained in this report is subject to change without notification. The information contained in this report is not
intended to be, and shall not constitute, an offer to sell, nor solicitation of any offer to buy, any security. Investors are advised
to consult their personal broker or investment advisor before making any decision concerning the subject company. Investors
are also urged to do their own due diligence. In our
opinion, only high risk oriented investors who can risk the loss of their entire investment should even consider a commitment
to the covered company. All readers are urged to peruse SEC documents relative to the subject company before making any
investment decision. No reproduction of this report is permissible without the consent of the writing analyst. All rights
reserved.

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