Released on = January 24, 2007, 7:52 am

Press Release Author = Zangani Investor Community

Industry = Financial

Press Release Summary = We have begun a movement to investigate the possibility of
changing, or repealing entirely, the Sarbanes-Oxley Act of 2002. Please see link
below for open letter and a signed petition that is growing by the minute.

The Open Letter:
http://www.zangani.com/sox


The \"Digg\" submission
http://www.digg.com/business_finance/Sarbanes_Oxley_Could_Be_A_Thing_of_the_Past_Open_Letter_to_Congress


Press Release Body = AN OPEN LETTER TO THE UNITED STATES CONGRESS
Dear Distinguished Public Servants:

Sarbanes-OxleyThe Sarbanes-Oxley (SOX) act was passed in 2002 to transform the
regulation of corporate accounting and disclosures. As a small business development
and investor relations company, operating in the domestic financial markets, we are
writing to urge you to take a closer look at the negative impact the Sarbanes-Oxley
Act of 2002 has wrought. Our hopes are that after Congress conducts a thorough
investigation you will repeal this \"well-intentioned\" however, ill-conceived
legislation.

We have seen first hand, the harm Sarbanes-Oxley has inflicted on colleagues and
competitors alike. The section that requires companies to perform internal audits
has been extremely costly to them, and has caused many companies to simply avoid
going public on the market. The reports we\'ve reviewed since this act has been in
effect indicates that worldwide public offerings listed on our exchanges has dropped
to 5% down from 50% in 2000. This is hardly surprising with the burdens placed on
small companies through this act.

We have witnessed first hand senior mangers and decision makers, become so
risk-aversive, because of stringent financial regulations and increased penalties
for accounting errors that they shy away from perfectly legitimate activities. These
same people are asked to personally affirm audits and accounting and if anything is
amiss, they risk jail time. The driving force of the act was to resolve the conflict
of auditing firms being paid by the companies they audit, and this has failed
miserably. It has only created yet another expensive and perhaps unconstitutional
agency to regulate the audit firms\' activities.

Earlier this month, venture capitalist and Netscape founder Jim Clark announced his
departure from the board of directors at photo-printing site Shutterfly, where he
served as chairman. In his resignation letter, he cited \"the constraints imposed by
Sarbanes-Oxley on (his) having any significant role on the board\" as one of the
primary reasons for departure.

In December 2006 Michael Bloomberg, New York\'s mayor, and Charles Schumer, a U.S.
senator, expressed their concern in an article titled: \"To save New York, learn from
London.\" which, amongst other things, pressed for a reduction in the regulatory
burden imposed by Sarbanes-Oxley. This was reinforced on January 22nd, 2007 when
U.S. Senator Charles E. Schumer, Governor Elliot Spitzer and NYC Mayor Michael R.
Bloomberg released a groundbreaking report revealing that New York could lose its
status as a global financial market without a major shift in public policy. Their
top recommendation to sustain the nation\'s and New York\'s global financial services
leadership was to \"provide clearer guidance for implementing the Sarbanes-Oxley Act\"
which they attribute as being the #1 issue at hand.

Is there any upside to Sarbanes-Oxley? If it did anything for you it would be O.K.,
but we\'ve seen absolutely nothing except at least a doubling of the legal and audit
bills. It\'s very bad for small companies. The current notion of exempting smaller
companies from Sarbanes-Oxley is stupid. Every small company wants to be a big
company. It\'s a continuum [so they\'ll have to comply anyway]. It needs to just be
flushed down the drain.

So, in essence, we feel that Congress, unknowingly, has rewarded the very
bureaucracies that failed to keep tabs on the Enrons of the world. These same
companies could have been prosecuted and tried with laws that were already in
existence before 2002. The Sarbanes-Oxley Act is a superfluous and harmful
constraint on free enterprise and we ask that it be repealed.

Sincerely,


Web Site = http://www.zangani.com

Contact Details = Zangani Investor Community
9 Main Street
Flemington, NJ 08822
908-788-9660 x625
office@zangani.com