Cal-Bay International Inc. Announces Investment Opinion on Cal-Bay International Inc. by Meehan Capital Management Group Inc.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Cal-Bay International Inc.

ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 5, 2001

Meehan Capital Management Group releases Equity Report on Cal-Bay International Inc. (Pink Sheets:CBYI).

Note: This report is not complete unless all pages, 1 through 6, are included. Read the information included in "Important Disclosures" found at the end of this report. Additional information on Meehan Capital Management Group Inc. can be obtained from the company's Web site at www.meehancapital.com.

Equity Report: Cal-Bay International, Inc.

On June 15, 2001, Cal-Bay International, Inc. filed a Form 10-SB with the U.S. Securities and Exchange Commission (SEC) for the registration of securities in the form of common stock by a small business under Section 12(b) or (g) of the Securities Act of 1934. As the required 60-day waiting period has now passed, the company is operating as a "reporting company" as defined by the SEC. The company is currently waiting clearance of any SEC comments. Once the company has cleared this process, it plans to make application to trade on the Nasdaq OTCBB. Once on the larger exchange, we anticipate that liquidity will increase.

Although several scenarios must develop before becoming a common name in the equity markets, we believe a positive long-term investment opportunity exists with Cal-Bay International, Inc.

Background

Cal-Bay International, Inc. is a holding company that serves three (3) primary functions. First, it is the holding company for Cal-Bay Controls, Inc. Second, it serves as a consulting company that specializes in sales, marketing and new business development for technology-oriented firms. Third, the company is involved with the development of several new products and technologies, which are anticipated to be on the market in the near future. It is also anticipated that the company is aggressively looking at an acquisition strategy to hasten the development of its technologies currently under development and thus a yield an earlier time to market.

Cal-Bay Controls, Inc. was initially formed in 1976 and is now operated as a wholly owned subsidiary of Cal-Bay International, Inc. Cal-Bay Controls is a manufacturer's representative company serving Southern California's process, environmental, safety and laboratory markets. The company has developed a network of strategic alliances that are designed to assist the company in obtaining a dominant market share in those areas that the company specializes.

Cal-Bay Controls offers a range of products to a wide variety of companies in very different industries. Maintaining an impressive client list, some of the clients include: Anheuser-Busch, Applied Utility Systems, California Portland Cement, Chevron Refining, GE Energy & Environmental Research, KVB/Enertec, Los Angeles County Sanitation District, Mitsubishi Heavy Industries, National Cement Corp., Reliant Energy, San Diego Air Pollution Control District, Southern California Gas Co., UCLA, UC Riverside, United States Air Force and others.

Industry

As environmental quality continues to be of the highest concern to the United States Environmental Protection Agency as well as state environmental regulatory agencies, the products that Cal-Bay Controls sells to the environmental markets should see continued growth over the next decade. Marketing such well-known industry names as Thermo Environmental Instruments Inc., Andersen Instruments, Servomex, Baldwin Environmental, EMRC and others, should provide the company with a powerful product offering as it continues to position itself strategically in rapidly growing markets.

The company is also expanding into the new area of "pattern recognition" analyzers and software. This software is designed to mimic the way the brain interprets complex sensory information using pattern matching algorithms. This developing market is expected by some industry watchers to enjoy triple digit growth rates for much of the next decade.

The current market for sales of environmental, process-control, safety and laboratory instrumentation in which Cal-Bay operates is currently estimated to exceed $900 million. And, while estimates are not completely reliable in a burgeoning industry such as pattern recognition analyzers, there have been ballpark estimates calling for $25 billion in sales by the year 2003. Not having firm numbers to rely on, we anticipate a far lower number will actually occur and would be open to revising numbers upward at a later time if our lowered estimates are proven too pessimistic. Cal-Bay has already established several strategic alliances that should allow the company to quickly enter into selected pattern recognition markets, and should garner the company substantial market share.

Senior Management & Corporate Information

Robert J. Thompson, President & Chief Executive Officer

Mr. Thompson acquired the Cal-Bay Controls, Inc. in 1990. "Bob" earned a B.S. in Mechanical Engineering from Ohio State University and has worked in the analytical instrumentation industry for over 20 years.

Charles A. Prebay, Vice President and Chief Financial Officer

Mr. Prebay has worked in the analytical instrumentation industry for over 20 years. "Chuck" earned a B.S. in Biological Sciences from Michigan State University.

Corporate Information:

Cal-Bay International, Inc.                Telephone: [phone]
1582 Parkway Loop                          Facsimile:  714-258-7077
Suite G                                    Email: [e-mail]
Tustin, CA 92780                           Internet: www.calbayinc.com

State of Incorporation: Nevada
Exchange: Pink Sheets -- Nasdaq OTCBB application expected in near
future
Transfer Agent: Pacific Stock Transfer, Las Vegas, NV
Shares Outstanding: 21,390,000 as of May 2, 2001
Float: 2,778,000 as of May 2, 2001

Financial Analysis
(Estimates provided by Cal-Bay Int'l.)

      All figures actual values, except per share data.

2000 New Order Bookings(1)                  $           2,382,255
2000 Revs                                   $             174,325
2000 Net Inc.                               $                   0
2000 EBITDA                                 $                   0
2000 Gross Margins                                           54.7%
2000 Net Margins                                                0%

2001 New Order Bookings (est.)              $           3,500,000
2001 Revs (est.)                            $             310,000
2001 Net Inc. (est.)                        $                   0
2001 EBITDA (est.)                          $                   0
2001 Gross Margins (est.)                                      55%
2001 Net Margins (est.)                                         0%

2002 New Order Bookings (est.)              $5,000,000-$7,000,000
2002 Revs (est.)                            $2,000,000-$2,500,000
2002 Net Inc. (est.)                        $    200,000-$250,000
2002 EBITDA (est.)                          $    210,000-$280,000
2002 Gross Margins (est.)                                      50%
2002 Net Margins (est.)                                        10%


      MCMG Growth Forecasts

                      2001                2002                 2003

Total Bookings     $3,500,000          $5,000,000         $7,500,000
Bookings Growth(1)      46.92%              42.86%                50%
Total Revenues       $310,000          $2,000,000         $4,000,000
Revenue Growth(2)       78.83%                250%               200%
Net Income:               N/A            $200,000           $780,000
EPS                         0               $0.01             $0.025
Gross Margin:              55%                 50%                55%
Net Margin:                 0%                 10%                19%

Notes:

(1)      New Order Bookings represents the total value of the orders
         received by Cal-Bay during the fiscal year on behalf of
         manufacturing companies that Cal-Bay represents.
(2)      Revenue figures reflect the commissions payable to Cal-Bay
         from the manufacturing companies during the fiscal year, as
         well as manufacturing revenues from future acquisitions that
         are currently under negotiation.

Recommendation

With the limited coverage currently given to this stock; analysts' estimates for this company are not readily available from other sources. We must qualify our recommendation by acknowledging that our forecasts are based heavily on the estimates of the company's management based on current market conditions. The management has described their visibility as quite good for the next 6-12 months. We will stay in contact with management and should there be any material changes we will report them at that time.

Using the above figures for our calculations, our expectation on net income for the 2002 is forecast to come in at $200,000 with EPS turning positive at $0.01. Based on projections from management for future growth we anticipate earnings growth to be in the range of 200% to 250% over the 2 years; therefore we are forecasting EPS for fiscal 2003 of approximately $0.025.

We expect the company to achieve its current goal of Nasdaq OTCBB listing by the 4th quarter of 2001 and anticipate positive earnings per share in 2002, if not sooner. Should these events not occur in this manner, it will materially impact our projections.

As with the calculation of target prices for all the stocks that we follow, we use what we refer to as the "MCMG PEG Ratio." We define the "MCMG PEG Ratio" as: Current P/E Ratio divided by the FUTURE earnings growth rate. The FUTURE rate can be as long a period as can reasonably be forecast with realistic expectations and visibility. An MCMG PEG Ratio of approximately 1.0 or less indicates an opportunity to obtain stocks at "value" prices.

In the case of Cal-Bay, we anticipate that earnings will grow at a more rapid pace than revenues as a result of expanding net margins as well as the reduction of certain overhead costs that can be eliminated as a result of the expected acquisitions. The company expects to grow revenues at approximately 200%-250% per year, on average as a result of acquisitions, for the next several years. Given the level of confidence that the management expresses in the likelihood of these occurrences, we anticipate that earnings will grow at 250% for the fiscal 2002 and approximately 200% in fiscal 2003.

Rating:           Initiating Coverage at - "Speculative Long-Term Buy"
Current Price:    $ 1.58

EPS         Growth Rate    MCMG PEG  Price Targets:
$0.00            N/A          N/A    $ 2.00    6 months - Fiscal 2001
$0.01            250%         1.0    $ 2.50   12 months - Fiscal 2002
$0.025           200%         1.0    $ 5.00   24 months - Fiscal 2003

We should note that these shares are not recommended for conservative investors. However, those investors who are willing to take a measured amount of risk may be rewarded handsomely with the purchase of Cal-Bay International shares at current levels.

This Equity Report was prepared by:

Linwood C. Meehan III

President and Portfolio Manager

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Telephone: [phone]) Voicemail Ext. 3

Facsimile: (407-898-8597)

E-mail: [e-mail]

Meehan Capital Management Group provides our clients a broad array of investment expertise, which is available within our direct organization, as well as through strategic affiliations. Meehan Capital Management Group offers the following services:

-- Investment advisory services for many client types, including, but not
limited to: individuals, corporations (profit and non-profit), trusts,
foundations, etc.

-- A broad range of investment options and services, including establishing
asset allocation models for client portfolios; managing investment accounts
consisting of stocks, bonds, cash, mutual funds, options, establishment and
management of corporate retirement plans, etc.

-- Experienced professionals that provide insight into the economy, business,
taxation, legal scenarios and financial markets. This professionalism and
expertise, whether internal or outsourced is put to work on behalf of our
clients in the most effective ways possible.

MCMG Equity Rating Scale

Large & Mid Cap Ratings

-- Buy Aggressive -- Near-Term Buy -- Long-Term Buy -- Near-Term Accumulate -- Long-Term Accumulate -- Hold -- Sell

Small & Micro Cap Ratings

-- Speculative Buy Aggressive -- Speculative Near-Term Buy -- Speculative Long-Term Buy -- Speculative Long-Term Accumulate -- Hold -- Sell

Disclosure

This equity report was written by Linwood C. Meehan III, MBA, President and Portfolio Manager of Meehan Capital Management Group, Inc. The report is a publication of Meehan Capital Management Group, Inc, a Registered Investment Advisor located in Orlando, Florida. Meehan Capital Management Group, Inc. may now, or in the future, own positions in the securities that it follows either via its own investment accounts or on behalf of its clients through their accounts directly, and additionally may perform investment advisory, investment banking, venture capital, fundraising, marketing and/or promotional activities for these companies as well. Additionally, Meehan Capital Management Group and/or its associates may also have some other pecuniary interests in making the recommendation.

The information and data provided in this analysis was derived from sources that we believe to be reliable and accurate and assumes no liability due to any of this information being inaccurate. Our analysis of this information is reliant on the assumption that the information is correct. Should any of this information be incorrect, our opinions could be different. Opinions expressed are strictly those of the writer of this research report and are subject to change without notice. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities or any options, futures or other derivatives related to such securities by Meehan Capital Management Group, Inc. or any representative thereof.

This research report was prepared for general circulation and is intended for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may review this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security's price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. Meehan Capital Management Group, Inc. assumes no liability in the possible gain or loss that an investor may realize when investing in any type of security.

An investment in an OTC security is very speculative and involves a high degree of risk. Many OTC securities are relatively illiquid, or "thinly traded," which can enhance volatility in the share price and make it difficult for investors to buy or sell without dramatically effecting the quoted price or may be unable to sell a position at a later date.