Receiver Report, February 25, 2000

Carl F. Schoeppl, Esq., Receiver
4651 North Federal Highway,
Boca Raton, Florida 33431-5133
Toll Free: (888) ATM-5001

February 25, 2000

Re: FTC v. Transworld Enterprises, Inc. d/b/a ATM International, Mark Goldstein a/k/a Mark Davis, and James A. Mackey, Jr., Case No. 00-8126-GRAHAM (S.D. Fla.)

Dear Investors and Potential Creditors:

On February 7, 2000, the Federal Trade Commission ("FTC") filed a complaint (the "Complaint") against Transworld Enterprises, Inc. d/b/a ATM International ("Transworld), Mark Goldstein a/k/a Mark Davis, and James A. Mackey, Jr. ("Mackey")(collectively, the "Defendants") alleging that they offered and sold Automated Teller Machine ("ATM") business ventures to investors in violation of Section 5(a) of the FTC Act, 15 U.S.C. 45(a), and the FTC's Trade Regulation Rule entitled "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures" (the "Franchise Rule"), 16 C.F.R. 436. A copy of the Complaint is attached for your reference.

In summary, the Complaint alleges that between in or about 1996 and continuing through to in or about February 2000, the Defendants engaged in a variety of unfair and deceptive acts and practices in connection with the offer and sale of ATM business ventures to investors throughout the United States. (Compl., 9-33). Specifically, the Complaint alleges that the Defendants, expressly or by implication, represented that: (a) consumers who purchase the business venture would earn a net annual profit of between $6,360 and $39,840, when, in truth and fact, few, if any, consumers earned such net annual profits; (b) consumers would be provided with profitable locations for their ATM machines, when, in truth and fact, few, if any, consumers would be provided with profitable locations; and (c) the Defendants would provide consumers all the support necessary in all areas of the ATM business, when, in truth and fact, in most instances, the Defendants provided little or no support, and that consumers were instead required to obtain such support services from another company for an additional fee of $1,000 or more. (Compl., 17-26).

The Complaint further alleges that the Defendants failed to provide prospective franchisees with accurate and complete basic disclosure documents required by the Franchise Rule, and that, in connection with the offering of "franchises" as that term is defined in the Franchise Rule, the Defendants made "earnings claims" without providing prospective franchisees with earnings claim documents required by the Franchise Rule, without having a reasonable basis for such claims at the time they were made, and without disclosing the information required by the Franchise Rule in immediate conjunction therewith. (Compl., 27-32).

Contemporaneous with the filing of the Complaint, the FTC filed an Emergency Motion for a Temporary Restraining Order against the Defendants which was subsequently granted by the Court. Thereafter, a Stipulated Preliminary Injunction (the "Receivership Order") was entered against Defendants Transworld and Mackey which contained provisions for my appointment as the permanent Receiver for Transworld. A copy of the Receivership Order is enclosed with this letter.

As Receiver, I have the authority and responsibility to, among other things, determine the nature, location, and value of all assets and property owned by or in the possession of Transworld. Obviously, there are no guarantees as to whether and to what extent assets and property will be recovered for the Receivership Estate. However, you can be assured that the Receiver is acting with all dispatch to dutifully discharge his responsibilities under the Receivership Order.

To assist me in discharging my duties as Receiver, I have enclosed a Claim Form/Questionnaire for you to review, and complete at your earliest possible convenience. The purpose of the Claim Form/Questionnaire is to enable me to determine and verify who invested, what they invested in, how much they invested, and how much interest and/or return of principal they have received. The information communicated by you to the Receiver or his staff is not confidential, and will be utilized by the Receiver in resolving your claim, and administering the Receivership Estate. I would greatly appreciate it if you could complete and return the Claim Form/Questionnaire to me at the above-listed address within thirty (30) days of your receipt of this letter.

In order to keep investors informed as to the progress of the Receivership proceedings, I have established a toll-free investor "Hotline" at (888) ATM-5001. The Hotline provides investors with a recorded message detailing brief highlights in the case, and an opportunity to leave recorded voice message if they so desire. In the interest of reducing expense to the Receivership Estate so that potential distributions to investors can be maximized, all communications to the Receiver should be in writing. I am currently in the process of creating a "Transworld Receivership Estate" Web Page which should be operational in the very near future. I will post the address for the web site on the Hotline when it becomes available.

Please be advised that neither the Receiver, nor his legal counsel, can give you personal legal advice concerning your claim, and that you should consult with the attorney of your choice regarding your legal rights.




Carl F. Schoeppl, As Receiver

Enc. As Stated