EXHIBIT 99.1
Report of Independent Auditors
Board of Directors
Nitres, Inc.
We have audited the accompanying balance sheets of Nitres, Inc. as of June 30,
1999 and 1998 and the related statements of operations, shareholders' equity
(deficit), and cash flows for each of the three years in the period ended June
30, 1999. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Nitres, Inc. as of June 30,
1999 and 1998, and the results of its operations and its cash flows for each of
the three years in the period ended June 30, 1999, in conformity with accounting
principles generally accepted in the United States.
/s/ Ernst & Young LLP
March 26, 2000, except for Note 8,
as to which the date is
April 10, 2000
