Sales are slower for Athens than they were for Sydney.

As a result of increased sales, product mix and expense reductions, second quarter gross margins as a percentage of revenue improved to 39 percent from 35 percent in the second quarter of 2004 and from 32 percent in the first quarter of 2005. We expect gross margin as a percentage of revenue to approximate 40 percent in the second half of 2005. We improved on our second quarter guidance of a loss of $0.08 to $0.09 per share, due mainly to the deferral of previously planned UWB investments until later this year. In addition, we reached our near-term fund raising goal and added further liquidity by obtaining approximately $4.2 million in new equity and debt financing commitments on June 20. With continued focus on managing our balance sheet, including increasing inventory turns and reducing DSOs, we intend to reduce the company's financing requirements for the fourth quarter.

We would like to see local taxes be more balanced and not overly rely on the sales tax. On the other hand, both statewide and presumably locally, we're not only interested in fairness, but we're also interested in adequate revenue for the state and presumably the local government, too.

This thing would pay for itself to the city over time. This will generate new sales tax. I don't think anything would have happened on that site. It would have sat there and decayed without the help the city has provided through this redevelopment district. If the project would have worked without the city investing $3 million, then that site would have been developed a long time ago.

We plan on achieving profitable growth in the European market by opening stores, growing same-store sales and improving margins through operational efficiencies and better buying power.

Sales in China are going really well. We're getting a lot of interest. We're very excited.