OTCPicks.com: OTCPicks.com Daily Market Movers Digest Midday Report for Tuesday, August 26th SPNG, ECRO, NCEH, MEDT, COIN

Tue. August 26, 2008; Posted: 12:34 PM

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SPONGETECH DELIVERY SYSTEMS (OTCBB: SPNG)

Detailed Quote: http://www.otcpicks.com/quotes/SPNG.php

Company Profile: http://www.otcpicks.com/spongetech/spongetech.htm

SpongeTech Delivery Systems is a development stage company which designs, produces, markets and distributes cleaning products for vehicular use utilizing patented technology relating to sponges containing hydrophilic (liquid absorbing) foam polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, which is loaded with specially formulated soaps and wax that are released when the sponge is applied to a surface with minimal pressure. The Company's products are currently designed specifically for vehicular cleaning use. However, the Company is exploring the possibility of using its patented technology for the development of sponges for other uses, including for use with anti-bacterial, bath and kitchen soaps for household uses, as well as for use as a children's bath foam sponge.

SPNG News:

August 26 - SpongeTech Delivery Systems, Inc. Sponsored Darryl Strawberry Foundation's 2nd Annual Charity Golf Classic

Sports Greats and Celebrities Take a Swing Against Developmental Disorder to Support Foundation for Children and Families Affected by Autism

SpongeTech Delivery Systems, Inc. (OTCBB: SPNG | Quote | Chart | News | PowerRating) (www.spongetech.com) a company which designs, produces, and markets innovative, cost-effective, and environmentally sensitive packaging and product delivery solutions through its exclusive patented packaging technology, sponsored the Darryl Strawberry Foundation Golf Outing for Children and Families Affected by Autism on Monday, August 25th at the Bethpage State Park in Farmingdale, New York.

Among the sports greats in attendance were: Carl Banks, Sam Rosen, John Starks, Willie Upshaw, Ozzie Smith, Ray Lucas, Curtis McGriff, Bruce Harper, and Ron Darling, among others.

SpongeTech has a partnership with the Darryl Strawberry Foundation whereby the Company has committed to donate a percentage of its children's bath sponge, Puddle Pals, revenues to the Darryl Strawberry Foundation. Puddle Pals is a baby bath toy filled with hypoallergenic soap, with each sponge capable of up to eight washes.

"We were pleased to be a part of an event to support such an important cause," said Steven Moskowitz, COO of SpongeTech. "We believe our technologies have great potential to grow in popularity as we continue to market and promote SpongeTech's products. We look forward to continuing to support this foundation and to participate in other marketing opportunities as our company remains on track for future growth."

ECC CAPITAL CORPORATION (OTC: ECRO | Quote | Chart | News | PowerRating) "Up 88.54% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/ECRO.php

ECC Capital Corporation, a mortgage real estate investment trust (REIT), invests in residential mortgage loans in the United States. It owns and manages interests in securitization trusts, which issued securities collateralized by mortgages on residential real estate. The company qualifies as a REIT for federal income tax purposes. As a REIT, it would not be subject to federal income tax to the extent that it distributes at least 90% of its REIT taxable income to its shareholders. ECC Capital Corporation was founded in 2004 and is based in Irvine, California.

ECRO News:

August 25 - ECC Capital Corporation Announces Common Stock Cash Distribution of $0.16 Per Share

ECC Capital Corporation (OTC: ECRO), a mortgage finance real estate investment trust, announced today that its Board of Directors has declared a cash distribution of $0.16 per share of common stock. ECC Capital will make this distribution on Monday, September 22, 2008, to shareholders of record on Monday, September 8, 2008. The distribution will have an ex-dividend date of September 23, 2008.

This distribution and the prior distribution on March 21, 2008 were the result of one time events and changes in ECC Capital's perspective. These distributions should in no way be viewed as an indicator of future distributions. Several circumstances have contributed to ECC Capital's ability to make a $0.16 distribution on September 22, 2008. These circumstances include, but are not limited to:

* ECC Capital continues to experience higher levels of delinquency and losses on its mortgage loans held for investment in its securitization trusts. Therefore, ECC Capital estimates that the probability and amount of future cash from over-collateralization has been significantly reduced. Consequently, ECC Capital has significantly reduced the estimate of cash expenditure and investment directed toward maximizing future over-collateralization releases.

* ECC Capital has changed its perspective and reduced the amount of capital that should be retained to invest in its existing and new business opportunities. Management has not found any significant investment opportunities that provide returns that are commensurate with related risk. Therefore, a significant portion of ECC Capital's allocated investment capital will be returned to the shareholders.

* ECC Capital has settled certain liabilities, claims, contractual obligations and restrictions. In addition, ECC Capital sold certain real estate owned properties and collected on certain loans. Collectively, these events provided for a reduction in required cash reserves and an increase in cash.

* ECC Capital has benefited from reduced operating costs.

ECC Capital has evaluated and will continue evaluating several alternatives to facilitate the realization of any remaining shareholder value, which include, but are not limited to:

A) A sale of some or all of its assets.

B) A sale of the company.

C) Investment in business opportunities that may defray the cost of its remaining operations.

D) Use of technology to oversee and maximize the value of its remaining mortgage portfolio or produce revenue from third parties.

E) Outsourcing of various functions.

F) Partnering and/or joint venturing to reduce cost or increase revenue.

ECC Capital has retained Milestone Advisors as its banker and advisor to assist in this process. There are no assurances that these efforts will result in additional distributions. In the absence of a transaction that allows otherwise, ECC Capital plans to retain the necessary capital to maintain its reduced ongoing operations in addition to meeting the obligations of creditors. Further, since ECC Capital must retain enough cash to operate and to meet creditor obligations it will continue to look for investments or pursue opportunities that it believes may grow shareholder value. Any remaining shareholder value may be impacted by potential losses on investments, expenses associated with ongoing operations, its existing liabilities, the adverse changing and unpredictable environment in which it operates. Therefore, ECC Capital cautions that there may be no further distributions.

NEW CENTURY EQUITY HOLDINGS INCORPORATED (OTCBB: NCEH | Quote | Chart | News | PowerRating) "Up 67.65% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/NCEH.php

New Century Equity Holdings Corp. holds interest in ACP Investments L.P (Ascendant), which provides asset management services. It intends to redeploy its assets to enhance stockholder value and is seeking, analyzing, and evaluating potential acquisition and merger candidates. The company, formerly known as Billing Concepts Corp., was founded in 1996 and is headquartered in Dallas, Texas.

NCEH News:

August 26 - New Century Equity Holdings Corp. Announces Agreement to Acquire Wilhelmina International, Ltd.

New Century Equity Holdings Corp. (OTCBB: NCEH | Quote | Chart | News | PowerRating) announced that it has executed a definitive agreement to acquire Wilhelmina International, Ltd. and its affiliated companies, including Wilhelmina Models, Wilhelmina Miami, Wilhelmina Film & TV and Wilhelmina Artist Management.

Wilhelmina Models, founded 40 years ago by successful model Wilhelmina Cooper, is today one of the largest and most successful model management companies in the world representing women, men and children through its offices in New York, Los Angeles, and Miami. As an innovator in the industry, Wilhelmina Models became the first fashion company to develop a specific division to exclusively represent premier talent in the worlds of music, sports and entertainment. Today, that division, called Wilhelmina Artist Management, is one of the top in the industry with a roster that includes music superstars Fergie, Natasha Bedingfield, Ciara, Brandy, and many others. In addition, the sports roster has golf teaching legend David Leadbetter and the recently created Wilhelmina 7. Wilhelmina Artist Management helps create, develop, and maintain the brand identity of artists and athletes by securing major fashion campaigns, endorsements, marketing opportunities and tour sponsorships. The Division has secured commercial endorsements, fashion campaigns and sponsorships for its artists with companies such as Candie's shoes, Coca-Cola, Cover Girl, Dessert Beauty, Donna Karan, Hershey's, Hugo Boss, L'Oreal, Mattel, Nautica, Nestle, Nike, and Pizza Hut.

At the closing of the transaction, New Century is expected to change its name to "Wilhelmina International, Inc." Wilhelmina will become New Century's principal operating business.

Under the terms of the merger agreement, New Century will acquire Wilhelmina for consideration of $30 million, consisting of $15 million in cash and $15 million in shares of New Century common stock. The aggregate purchase price is subject to certain adjustments tied to the performance of Wilhelmina's core modeling business in 2008 and earnout payments tied to the performance of each of Wilhelmina Artist Management and Wilhelmina Miami. The transaction is subject to the approval of New Century shareholders, together with other customary conditions, and is expected to close in the 4th quarter of 2008.

In connection with the execution of the transaction agreement, Newcastle Partners, L.P., an affiliate of New Century's Chairman and acting Chief Executive Officer, Mark E. Schwarz, has agreed to provide to the company up to $5 million in additional equity financing on terms commensurate with the valuation of shares to be issued to Wilhelmina's owners in the transaction. These funds will be used by New Century to complete the transaction. The financing arrangements have been approved separately by an independent committee of New Century's Board of Directors.

Mr. Schwarz, commented, "After four-plus years of patience and perseverance in seeking to identify an exceptional opportunity for New Century shareholders, we are pleased to announce the acquisition of Wilhelmina, one of the absolute top names in the model management industry worldwide. Wilhelmina is a truly unique company that possesses a long-established record of success. As a publicly-held company, Wilhelmina will be positioned to grow in a number of exciting areas, including artist management, television production and through possible future acquisitions."

New Century will file with the Securities and Exchange Commission a Current Report on Form 8-K containing additional information concerning the Wilhelmina purchase agreement.

MEDIATECHNICS CORPORATION (OTC: MEDT | Quote | Chart | News | PowerRating) "Up 18.92% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/MEDT.php

Mediatechnics Corporation (www.mediatechnicscorporation.com) is the parent company of Mediatechnics Systems Inc., MediaMaster Corporation, The Live Network, Innotech and CRD Technology.

MEDT News:

August 26 - Mediatechnics Corp. Inks Deal to Purchase Global Music Group-New York, Winner of Death Row Records Label Valued at $32 Million

Mediatechnics Corporation (OTC: MEDT | Quote | Chart | News | PowerRating) has signed a letter of intent to purchase Global Music Group-New York (GMG-NY), the company that won the bid to acquire the assets of Death Row Records in the U.S. Bankruptcy Court in June of this year for $24 million. Mediatechnics intends to provide Global Music with the funds needed to complete the acquisition.

The landmark deal would give Mediatechnics Corp. ownership of Global Music Group, which will hold upon completion of the purchase - free and clear of all liens, claims and encumbrances - all of the assets that comprise Death Row Records, including Death Row's catalog of master recordings and published music, as well as all trademarks and other intellectual property, licenses, artist and writer agreements, works in progress, and options. An independent valuation of the bankruptcy estate completed last month placed the catalog value at $32 million.

The Death Row catalog includes a significant amount of previously unreleased material by the late Tupac "2Pac" Shakur and other top artists, as well as almost all of the previously released music of Dr. Dre and 2Pac. The 2Pac music has spawned great interest with the media since the possibility of its imminent release became news.

Founded in 1991 by Marion "Suge" Knight and Dr. Dre, Death Row Records established itself as one of the biggest labels at the forefront of the '90s gangsta rap music era, and, for all intents and purposes, defined the genre. The label was home to such artists as Dr. Dre, Snoop Dogg, Tha Dogg Pound as well as 2Pac.

By the early 2000s, Death Row was besieged with several crippling lawsuits and criminal convictions for founder Suge Knight. In April of 2006, Knight sought bankruptcy protection for himself and the label. On June 24 of this year, the U.S. Bankruptcy Court for the Central District of California approved the sale of Death Row to Global Music Group - New York for $24 million, and Global Music placed a deposit with the court.

Mediatechnics President Richard Wilson said, "The acquisition of Global Music and Death Row Records will represent a landmark turning point for our company. Together with our subsidiaries, the Live Network and CRD Technologies, the prospects of co-branding, licensing and new product development are astounding." He continued, "We're driving hard to lock in all of the complicated pieces of this puzzle necessary to successfully conclude this remarkable deal." Susan Berg, President of Global Music Group-NY, said, "We are delighted by the prospects that this imminent transaction could bring to our two companies and believe the outcome, both financially and creatively, can be an incredible force." Berg qualified Global Music Group as a bidder with the Federal Bankruptcy Court prior to the auction in June, putting up more than one million dollars on deposit.

Mediatechnics' transaction remains contingent upon several factors, not the least of which is the closing of the financing and the subsequent payment to, and acceptance by, the Bankruptcy Court and its trustee. While many factors outside the control of Mediatechnics could yet affect whether or not the transaction is completed, the company is currently in possession of a Letter of Intent from a lender to fund the transaction, and has been informed by GMG-NY that it is likely that the purchase will be accepted when funds are proven and delivered.

CONVERTED ORGANICS INCORPORATED (NASDAQ: COIN | Quote | Chart | News | PowerRating) "Up 13.99% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/COIN.php

Converted Organics, Inc. focuses on the manufacture, sale, and distribution of natural soil amendment products combining nutritional and disease suppression characteristics. It uses organic food waste as raw material to manufacture soil amendment products. Converted Organics plans to sell and distribute these products in the agribusiness, turf management, and retail markets. The company was founded in 2003 and is headquartered in Boston, Massachusetts.

COIN News:

August 26 - Converted Organics Announces Strategic Alliance with Gro Group Inc. to Service up to 15,000 U.S. Nurseries, Retailers

Converted Organics Inc. (NASDAQ: COIN | Quote | Chart | News | PowerRating) announced that the Company will work with Gro Group Inc. as a manufacturing partner in 2009, supplying its organic granular fertilizer to seven of Gro Group Inc.'s major distributors, which collectively service up to 15,000 lawn and garden retailers throughout the United States. Converted Organics' organic granular fertilizer is for use on lawns, turf, flowers and gardens.

"Converted Organics is extremely excited to partner with Gro Group distributors to provide lawn and garden retailers with our high-quality, all-natural, organic granular fertilizer," said Richard P. Aleo, Executive Vice President of Sales and Marketing for Converted Organics. "Our product compliments and supports Gro Group's objective of empowering distributors to provide retailers with a competitive edge in the marketplace by supplying the finest quality products at the best dollar value."

Gro Group Inc. distributors service over 90 percent of the independent lawn and garden retailers in the U.S. and Canada, and are represented in every major U.S. and Canadian market. Converted Organics will showcase its all-natural soil amendment and fertilizer products in seven of Gro Group Inc.'s regional distributor retailer trade shows throughout the U.S. during September and October, 2008.

"Participating in Gro Group's distributor retailer trade shows augments Converted Organics' ongoing strategic sales and marketing efforts by providing well-attended venues for educating existing and potential customers about our unique product line," said Mr. Aleo.

ABOUT GRO GROUP INC.

Incorporated in 1974, Gro Group Inc. is a North American marketing group, equally owned by Gro Group Distributors, bringing together leading manufacturers, distributors, and retailers in the lawn and garden industry. Gro Group provides information exchange, group purchasing, the Growise Center Program, and the GroSource Plus Program offering leading, independent, regional retailers integrated marketing and merchandising opportunities. For more information about Gro Group Inc., and to view the easily downloadable Gro Group Advantage PowerPoint Presentation, visit www.grogroup.com.

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For full details on Converted Organics Inc (COIN) click here. Converted Organics Inc (COIN) has Short Term PowerRatings of 5. Details on Converted Organics Inc (COIN) Short Term PowerRatings is available at This Link.

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