PCLI Protocall Technologies Incorporated (PK)

Dutton Associates continues its coverage of Protocall Technologies (OTCBB:PCLI), lowering its rating to Neutral. The 7-page report by Dutton senior analyst Rafael Kapelinski is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Multex, and other leading financial portals. Protocall represents a very attractive opportunity to gain exposure to the digital software distribution market. Protocall's SoftwareToGo(R) (STG) system is a new approach to selling software, allowing customers to review software features and to then purchase shrink-wrapped software, complete with manufacturer's Certificate of Authenticity, directly from a software display and delivery kiosk within the retailer's store. Protocall's value proposition to software retailers is considerable: SoftwareToGo(R) allows them to offer thousands of software titles for sale in a 15-sq.-ft. area that would otherwise take up 5,000 sq. ft. of retail selling space. Our fundamental view on the stock became incrementally more positive following 4Q 2005 results and the sharp reduction in the share price in 1Q 2005. Yet again, 1Q 2005 results appear to indicate that Protocall Technologies Incorporated was successful in increasing sales velocity at the installed sites and was able to further reduce operating costs. However, we lower our rating to Neutral given the recent share price strength, which, in our view, limits short term upside potential. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs, and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 100 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $33,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $28,000 from the Company for 4 Research Reports with coverage commencing on 9/21/2004. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.