The reason ``Everything is similiar between Chimera and Pegasus`` is that Pegasus is a CHIMERA licensee, using CHIMERA technology! For those who do not know, the $2 million that Pegasus is paying Chimera for the exclusive rights to use their technology under their own brand in Europe and Africa (about 3/4 paid already in cash and stock, with the rest to follow in cash by year`s end)is only the beginning. Chimera also gets an ongoing piece of the Royalties from each Pegasus sub-licensee and a percentage of the net income.

As to merger speculation, I don`t see that happening, though I must admit you did make me stop for few minutes and calculate the ``benefits`` and drawbacks of doing a merger one way or the other. The reason it does not make sense from Chimera`s standpoint is that it would cost too much given Pegasus`s stock price right now, especially at a time when Chimera is working hard to get to break even before their anticipated OTCBB filing, even though they already own a good sized stake in Pegasus. On the flip side, I cannot see where it makes sense for Pegasus either because to purchase back the significant stake Chimera has in their company PLUS buy out the outstanding shares of Chimera shareholders would require they issue too many new shares. What do I mean by ``too many shares``? I mean so many millions of shares that the owners of Pegasus would be diluting their own shares SIGNIFICANTLY. I cannot see them doing that since they own so much of their own company(see ``Shares Outstanding`` vs ``Trading Float``--Who owns the other 10 million shares? You guessed it! Pegasus insiders and Chimera Technology!)Now, to take this a step further, let`s say for the sake of argument that Pegasus could buy Chimera Technology for a ``fire sale`` price, meaning where it trades now or even significantly less than it trades now? The question then becomes, why would Chimeras` owners accept that when they too own a significant stake in their own company? Again, since they own so much of their own company they would be hurting more than just us, they would be hurting themselves the MOST!

It is an interesting question you bring up Buffalo, worthy of thought and discussion, but logically speaking I cannot see it happening at this point, for the reasons outlined above. I would, however, be open to a thoughtful response if someone else would care to outline why they feel differently?