PureSpectrum Inc. (PSPM) engages in developing, marketing, licensing and contract manufacturing of lighting technology for use in residential, commercial and industrial applications worldwide. The Company offers a family of technologies, including under cabinet fluorescent, compact fluorescent lamps (CFLs), dimmable CFLs, linear fluorescents, dimming devices and lighting systems. It also owns various patents, pending patents and provisional patents relating to electronic ballast and lighting control technology, as well as markets its technology to lighting products manufacturers, retail outlets, electric utilities and directly to consumers. The Company was founded in 2000 and is based in Savannah, Georgia.

Share Statistics Jul-16-09			2007	2008	%Chg	Q1 2008	Q1 2009	% Chg
Symbol	PSPM	Revenue, $ Mn	-	-	n/m	-	-	n/m
Current price	$0.37	Gross marg.	-	-	n/m	-	-	n/m
52wk Range:	0.07 - 0.85	Oper. Margin	$(1.8)M	$(4.4) M	n/m	$(0.4) M	$(6.5) M	n/m
Avg Vol (3m):	366,688	Net margin	$(1.8) M	$(4.4) M	n/m	$(0.4) M	$(6.6) M	n/m
Market Cap.	63.67M				n/m			n/m
Dil. Shares Outst.	172.09 M	EPS, $	(0.06)	(0.04)	n/m	(0.01)	(0.04)	n/m

Source: Reuters.com, SEC Filings.

The Company is transitioning from a developing company to being a fully developed corporate entity. The organizational chart is expanding and new roles are being identified and fulfilled internally on a daily basis. The Company expects that its technologies and products to be major breakthroughs, and PSPM is now in the process of putting the infrastructure in place to support the interest it has generated.

In the past 52 weeks, shares have been trading in a range of $0.07 - $0.85. PSPM has more than doubled since the beginning of 2009 mainly due to announcements of the imminent commencement of commercialization.

Thomson Reuters reports that the Company is not covered by independent analyst research.

At the beginning of the year, PSPM launched an aggressive sales and marketing effort for its line of dimmable Compact Fluorescent Bulbs with appearances at major domestic and international trade shows, and feedback from audiences reached through the Company’s outreach has been overwhelmingly positive. The Company recently announced a bulk order for dimmable CFLs from a public utility in Minnesota, and the Middle East Electricity Exhibition and Conference generated developing relationships with potential distributors in Sri Lanka, Turkey, Saudi Arabia, Asia, Australia, Africa and throughout the Middle East.

PSPM processed its initial order for dimmable Compact Fluorescent Lamps (CFL) in June, continuing the Company’s transition into revenue generation. Product demand remains constant and sales momentum continues to build after the Company returned from utility industry trade shows with pre-purchase product sample requests from more than 80 utility companies.

The Company is receiving widespread inquiries regarding its products indicating market demand from municipal owned and public owned utility companies following appearances by the Company at the American Public Power Association (APPA) National Conference and Public Power Expo and the Edison Electric Institute (EEI) Annual Convention/Expo. Members of PSPM’s sales team met with hundreds of representatives from utility companies representing millions of dollars in purchasing power. PSPM is processing requests for products samples and will continue to distribute samples throughout July.

During the past few months, PSPM has completed audited financials dating back three years, appointed three independent directors to the Company’s board of directors and made sure all Company employees are acting in compliance with corporate governance requirements. The Company has undertaken measures to be compliant with the rules governing fully reporting companies and has declared its intention to make required filings with government agencies by June 15, 2009.

Effective June 3, 2009, PSPM has acquired control of International Medical Staffing Inc. by acquiring 3.6 million shares of IMSG common stock constituting 64.29% of the company’s outstanding common stock. IMSG had limited operations at the time of the acquisition.

Retrofitting linear fluorescent fixtures with energy efficient electronic ballasts is expected to be a $100 billion market during the next five years, and PSPM’s high performance, affordable dimmable ballast for linear fluorescent lighting will enable the Company to aggressively pursue Energy Service Companies (ESCO) and energy consulting groups that provide products and services to the commercial and industrial sectors. More than 80% of United States businesses occupy buildings that are at least 20 years old, outfitted with antiquated and inefficient lighting systems. PSPM’s energy efficient and dimmable advanced ballast technology for linear fluorescent lighting can be implemented cost effectively and that affordability could provide the Company with a distinct competitive advantage in an increasingly crowded marketplace.

Source: http://stockcharts.com/h-sc/ui

PSPM is below its 13-day moving average. This bearish sign is even more significant because the moving average is also trending lower.

The MACD for PSPM currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

The peer group companies are traded at 38.61 times 2010 EPS estimates. Smaller, technology companies enjoy premium trading compared to larger and well established players.

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jul-16-2009	symbol	Share, $	$ Mn	2009	2010	2009	2010
General Electric Co.	GE	12.40	131,310	12.53	13.19	0.79	0.80
Koninklijke Philips Electronics NV	PHG	20.54	18,970	513.50	19.56	0.45	0.43
LSI Industries Inc.	LYTS	5.82	127	194.00	52.91	0.55	0.57
Cree Inc.	CREE	28.96	2,580	44.55	38.61	4.57	4.07
Rubicon Technology Inc.	RBCN	11.09	222	n/m	100.82	14.80	6.17
Median				44.55	38.61	0.79	0.80
Purespectrum Inc.	PSPM	0.37	64	n/a	n/a	n/a	n/a

Source: Thomson Financial, Analyst estimates

Net Share Purchase Activity

Insider Purchases - Last 6 Months Shares Trans Purchases N/A N/A Sales N/A N/A Net Shares Purchased(Sold) N/A N/A Total Insider Shares Held N/A N/A % Net Shares Purchased (Sold) N/A N/A

Net Institutional Purchases - Prior Qtr to Latest Qtr Shares Net Shares Purchased (Sold) N/A % Change in Institutional Shares Held N/A

Data provided by Thomson Financial

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