RESOURCE ASSET MANAGEMENT (OTCBB: RAMG)

Editors Note:

Last month, StockUpTicks brought you a profile on an "Environmentally Friendly" company that found a niche in harvesting timber in Baja, Mexico. To see our complete profile, click here.

Since that profile and by sticking to its business plan, Resource Asset Management (OTCBB: RAMG) has made a significant business and production advancement (see the news release below). 

Maximizing the use of its harvested timber, RAMG has opened a complete mill to utilize what once would have been scrap lumber. Any time a company can take a by-product and turn it into a source of revenue, they're thinking creatively and getting the most bang-for-the-buck out of their raw materials. At Stockupticks, we like that kind of entrepreneurial spirit. 

And RAMG has accomplished this without having to sacrifice any part of its reforestation and conservation program. 

RAMG's affiliates have been doing business in Baja, Mexico for a very long time and it has strong backing from the local and regional governments as it supplies work to people of the surrounding towns and villages and produces new jobs like those at the pallet mill.  They are a proven, responsible member of the business community in Baja and its opportunities for expanding in other parts of Mexico are a keen focus of management.

RAMG has an opportunity to seize a piece of the $1.0 to $1.5 billion Pallet\Container market in Mexico and RAMG has positioned itself in the U.S.-Mexico market to become a major player with the opening of this mill. Not only can RAMG avail itself of the mill's production capabilities, the production capacity can be maintained at very high levels as other timber companies bring their pallet business to RAMG.

RAMG expects to capture a sizable piece of the wood pallet market, with an anticipated first year gross revenues in pallets exceeding $4 million. Several customers have indicated a need for more than 40,000 pallets per month. Using RAMG’s own harvested timber with Mexican labor and the ability to ship from a location closer to the end users, RAMG expects to have a competitive edge over imports in the form of cost and delivery performance.

*** WEDNESDAY'S NEWS FROM RAMG ***

Wednesday June 19, 2:05 pm Eastern Time
SOURCE: Resource Asset Management Corporation 

COSTA MESA, Calif., June 19, 2002 (PRIMEZONE) -- E. G. Marchi of Resource Asset Management Corporation (OTCBB:RAMG - news) today announced the start of its operation of a pallet mill as part of its strategic alliance with AmeraMex International Inc. (Pink Sheets:AMMX - news). The mill is located at the Ojos Negros mill site close to the source of timber and lumber produced by AmeraMex and is centrally located to large agricultural and industrial users.

According to RPM Technologies, a leader in the pallet industry, the world pallet market is approximately $9 billion a year (80% or more than $7 billion of which is wood); and according to the American Pallet and Manufacturing Association, the annual growth rate of pallet demand in Mexico is 12% per year.

Mr. Marchi, Vice President of RAMG, stated: ``This mill would be capable of producing over 2,000 pallets a day once completed. It is RAMG's intent at this time to service only the Mexican agricultural and industrial markets that require one-way heavy-duty wood pallets for use in exporting most of their production.''

Resource Asset Management Corporation engages in acquiring and providing equipment and facilities to a number of its Strategic Alliance Venture's natural resource development and related activities in Baja California, Mexico.

This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of company products and related technologies, competitive market conditions, the ability to secure additional sources of financing, the ability to maintain operating expenses at current levels, and other factors described in the Company's filings with the Securities and Exchange Commission. Consequently, the actual results the Company achieves may differ materially from those expressed or implied by any forward-looking statements due to such risks.

ABOUT RESOURCE ASSET MANAGEMENT CORPORATION

Resource Asset Management Corporation (RAMG) offers experience in the development and management of the rich, untouched natural resources of Baja, Mexico. The long peninsula of Baja is divided by its Juarrez mountain range. On one side is the Pacific Ocean, on the other side is the western Gulf of California, also known as the Sea of Cortez, and there is where the forests grow abundantly. RAMG 's business is located about 45 miles northeast of Ensenada, Mexico, at Ojos Negros. 

RAMG is an enterprise dedicated to capitalizing on emerging opportunities in natural resources markets both domestic and foreign. As a natural resource company supplying equipment and facilities for the production of building materials, the company is the primary driving force for AmeraMex to establish itself as the major timber supplier from the allocated forests of Baja. The excellent grade of timber found in this region is in constant demand worldwide. 

Capitalizing on an initial concession for 10 million board feet, with additional permits readily available as production capacity increases, AmeraMex shipped its first railcar of timber on Nov. 18, 2001 from Baja to Klamath Falls, Oregon. Acquiring rights to participate in the development of natural resources in the emerging economic climate of Mexico is a venue that RAMG and its strategic alliance partners know well. First into the area, AmeraMex personnel have a deep-background in forestry and is a hands-on, on-site leader overseeing daily operations. 

Through the company's strategic alliances, RAMG is securing leases, deeds and contracts for prime timber and high-grade sand deposits throughout the Juarrez range. RAMG currently has control of hard assets appraised at over $1.5 million and is emerging as one of the most significant employers in Baja. In the last month alone RAMG has invested over $300,000 in equipment, trucks, and facilities improvements at the Ojos Negros sawmill site. RAMG’s annualized lease payments based on Ameramex production are expected to exceed $6 million next year, in addition to RAMG’s revenues from sand.

RAMG changed its name from VPN Communications Corporation, (OTCBB: VPNN) on April 16th, 2002 and moved into new corporate offices to meet operational and administrative needs. The company has under construction and will soon unveil a new corporate web site dedicated to Investor Relations, SEC compliance, and the new company business model. With much of its corporate infrastructure in place, this new direction for the company is a fresh, focused start on building the business of developing natural resources.

The Opportunity For Growth

Being first in capturing and conserving more than $600 million in timber and sand over the next five years in Baja California, RAMG has exclusive agreements to harvest areas rich in natural resources only a short 200 miles south of the Mexican border near Ensenada. 

Sharing in the vision of RAMG and its Mexican affiliates, the native citizens and landowners of Baja, together with its government officials, have endorsed RAMG's role of being a major developer and guardian of their natural resources, and are supplying the necessary leases, permits, and licenses, opening the door to the economic boom sure to follow in the area.

First round angel financing has provided the infrastructure of roads, buildings and site improvements for the initial sawmills and logging equipment already in place, presently capable of over 20,000 board feet/day in cut lumber. Watch RAMG develop as its production begins to supply lumber, sand and wood products sorely needed here and in emerging economies in Central and South America.

With a shortage of domestic timber combined with a 5-to-1 labor advantage in Mexico, the company that is brought to you today uncovers an opportunity with a strategic advantage in a huge industry. Resource Asset Management (RAMG) is a natural resource business that operates in an asset class dealing with a renewable resource in forestry and sand. 

This is different from oil and gold in that new finds of metals and petroleum can drive down the price, but everyone knows where the forests are. According to the December 2001 issue of Wealth Magazine, published by Bloomberg, “Timber’s qualifications as a solid alternative investment are too impressive to dismiss.”

As a result of strategic alliances with AmeraMex International, Baja Timber and other companies and operations in Mexico, RAMG is filling a critical need for capitalizing timber and lumber operations on the Baja peninsula in Mexico near the U.S. border in California. RAMG, as a supplier of equipment and facilities under revenue sharing leases, has already made a significant contribution toward expanding timber harvesting and the production of lumber by AmeraMex. 

After acquiring rights to purchase an existing full scale sawmill at a bargain price for stock, through its subsidiary Southwick Management, RAMG 's joint venture AMFS Limited has in escrow the right to acquire control of AmeraMex subject to audits, which are now in process. AmeraMex acquired timber rights through its Mexican subsidiary from Baja Timber, the first to negotiate timber deeds, permits and work agreements in Baja.  The company also has the benefit of utilizing established truck, rail and shipping transportation corridors. RAMG has provided and will provide all future capital required for AmeraMex to implement harvesting timber and cutting lumber in Baja. RAMG will substantially participate in those revenues on a per unit of production basis under RAMG 's exclusive equipment and facility leasing arrangements. 

Existing agreements with a potential approaching $50,000,000 in sales over the next two to five years are being negotiated by AmeraMex in Baja, Mexico. RAMG is currently financing several projects in the building materials business representing significant market penetration in an industry with combined institutional and individual investments totaling more than $11 billion according to the Bloomberg article.

The strong housing market that U.S. consumers enjoyed in spite of last year's recession has made timber a valuable, demand-side commodity once again. The big names in timber like International Paper Weyerhaeuser, Georgia-Pacific and Boise Cascade have focused their foreign operations in Canada and that same approach in Mexico is the key to success for RAMG. 
 

*SELECTED FINANCIAL HIGHLIGHTS*

Shares Authorized: 40,000,000 common, 10 million preferred 
Shares issued Common: 12,555,944 
Shares issued Preferred: 1,600,000
Float: 800,000 shares
26 week Hi/Lo:  May 2002- $0.62 / Dec 2001- $0.07
Transfer Agent:  Atlas Stock Transfer, Salt Lake City, Utah
 

* CONTACT *

Stockupticks Safe Harbor Statement: Statements contained in this document, including those pertaining to estimates and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. Disclaimer: e38lZCAZ

StockUpTicks.com is a property of Market Pathways Financial Relations Incorporated (MP).  The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness.  Past performance is no guarantee of future results. This report is for information purposes only and should not be used as the basis for any investment decision. MP has been paid $10,000 and 45,000 shares of RAMG by Investors Advocate LTD, LLC for distribution of this report and other services.  This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.  Write or call MP for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934.  MP is not an investment advisor and this report is not investment advice.  This information is neither a solicitation to buy nor an offer to sell securities.  Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. MP and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned.  Information contained herein may not be reproduced in whole or in part without the express written consent of Market Pathways Financial Relations Incorporated.