margin, low overhead business; an ideal combination. The market for New Age & alternative health products is a lot greater than I imagined. NACT is taking advantage of that market & of the clear trend to more & more buying through the Internet. Here are some other things I like:

• Focuses on a market that is under-served
• First to market
• Robust proprietary technology
• Experienced, hands-on management
• National & international reach
• Developing revenue sharing relationships
• Both a retail & wholesale distributor
• Good strategic alliances
• Undervalued at its present low price

Contact

Call President Ken Shenkman, Ph.D. @ 888-295-2844 or 561-989-0808, fax 561-989-9404, e-mail: ken@newagecities.com, or write 1181 So. Rogers Circle, Suite 5, Boca Raton, FL 33487. www.newagecities.com www.newagesound.com

Industry Commentary

By Tony Velocci

Chances are most investors have never heard of National Sorbents (OTC/BB: NSIE), but the products & services it sells have become essential commodities in the growing effort worldwide to protect the environment from the harmful effects of toxic leaks & spills.

Headquartered in Cincinnati, OH, National Sorbents produces & markets devices & materials for containing & cleaning up hazardous substances such as crude oil, fuels, chemicals, solvents, & the like. Additionally, the company provides technical assistance on the most efficient method for cleaning up environmental messes. For example, National Sorbents will develop customized products for client-companies & help develop methods for applying its specialized products to client-companies' individual requirements.

The combination of the these products & technical services ? with a heavy emphasis on the latter ? essentially makes National Sorbents a one-stop source for literally everything a company might need to aggressively contain & clean up a spill or leak. About 80 percent of all spills & leaks require professional attention, according to President Daniel B. Jones.

Products produced by National Sorbents were used in the aftermath of the disastrous oil spill by the Exxon Valdez in Alaska waters in 1989. They have been employed following countless spills as a result of accidents on America's highways & railroads. It's also National Sorbents that provides the specialized products used to help keep the Panama Canal clean.

The market for sorbent products is growing by about 11 percent annually & is approaching $1.2 billion. National Sorbents' share of this lucrative business is still very small. There are 50-60 companies claiming to be sorbent manufacturers, but that estimate is suspect. Currently, about half a dozen concerns compete for sales dollars. On one end of the spectrum is Minnesota Mining & Manufacturing, & on the other end is National Sorbents.

The fact that the company has been able to hold its own & grow market share is a testament to the effectiveness of its services & products, Jones said. An example is the company's Maax Rescue, which can absorb up to 30 times its weight in acids, alkalis, alcohol, solvents, paints, or fuels.

Recently, the company introduced a line of sorbents that can be reused 30 to 50 times. Not only do these products save money for customers, but the "closed loop" system that allows for the reuse of the sorbents can indemnify some customers from U.S. Environmental Protection Agency hazardous-disposal regulations, according to Jones.

To market its products & services, National Sorbents relies on an international network of about 200 distributors. This number will decline within the next year as the company reconfigures the network in favor of fewer but larger distributors who are capable of selling its products in larger volume.

In June of this year, National Sorbents was honored with an award by Ohio for being the fastest growing exporter statewide. Revenue from sorbent sales increased nearly 50% from 1997 to 1998 & is on track to experience another significant rise in 1999. About 40% of the company's revenue comes from outside the U.S. Last year, National Sorbents posted a loss of $323,000. As revenue continues to increase, Jones expects to achieve profitability in the near future. As of 9/30/99, there were 12,296,938 shares of common stock outstanding.

For more information, contact Daniel B. Jones, president of National Sorbents Inc., 10139 Commerce Park Dr., Cincinnati, Ohio 45246-1335. Call 513-860-4144 or 800-322-4144, fax 513-860-5697. www.natl-sorbents.com

[Editor's Note: Tony Velocci is a senior editor at McGraw Hill. He writes for numerous business, financial, & general interest publications, including Fortune, Institutional Investor, Nation's Business, & The Robb Report. He is a recognized authority on the aerospace & air transport industries.]

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