Wednesday, November 14, 2007

SAGE REPORT: Questions for LQMT Shareholders Meeting, 10:00am Thursday, Nov 15, 2007

The 2007 Liquidmetal Technologies, Inc. annual
meeting of
shareholders is to be held at the Courtyard
Marriott, 27492 Portola Parkway
, Foothill Ranch, California,
on Thursday, November 15, 2007, at 10:00 a.m., PST.

The staff of the Sage Report received from five share-
the following questions to be raised with the
members of the
Board of Directors:

1) Pre-eminent among all the shareholders polled is the
why management has failed to meet its obligation
to repay
short-term debt due in October of 2007.
Minimum payment
on the July 2007 notes in the amount of
$2,083,000 . In
addition, 1,796,000 plus interest is due the
Kookmin Bank:
1,571,000 due in December, and the balance
of 225,000 due
in Feburary of 2008.

2) Why is the coatings business under Larry Buffington, President of Liquidmetal, Inc. is growing revenues
and profits
at a consistent rate, while the Bulk Alloy
is decreasing in revenue and profit? This 3Q
2007 numbers compared
3Q 2006 speak very clearly.
Since Larry Buffington is President and CEO of Liquidmetal,

we suggest that he devote more time and energy to Bulk
which is clearly losing the race. Otherwise, hire another President and CEO
for the Bulk Alloy Business, since clearly it is necessary as shown
by the results for the last year. We need to get the job done,
quickly, effectively, and competently, and turn profitable with
right thinking uncrippled by past failutes.

It is not the shareholders responsibility to provide on the job
training for an executive. He is to come to the job with the right
stuff. We need an experienced executive from the metallurgical
realm to head the bulk alloy business. PERIOD.

3) Management has in the past year several times alluded to
returning to the 2004 plan to making joint ventures with
contract manufacturers which would purchase Buhler-
Liquidmetal die casting machines with purpose to manufacture
and market to customers of the contract manufacturers,
and products diecast utilizing Liquidmetal
technology and pattented
feedstocks, namely the Zirconium
based bulk metallic alloys. To date,
three joint ventures have
been established:

a) an indefinitely non-operational joint venture with Jack

b) a primarily experimental unit in Italy (LSI) which is not
in the revenue or profit

c) a recent transaction of expedience between the two Kang
in which partial assets and employees of Liquidmetal
Korea were
transferred to James Kang of Grace Metals, a
Korea-based company
operating in both Korea and in the
former Weihai, China finishing
plant under a licensing
agreement in which Grace pays Liquidmetal
Inc a royalty and for the Liquidmetal zirconium-based

alloys made in Korea.

4) What the shareholders want to know is what has become
of the
JV's which are not based upon old friendships
and nepotism?
To wit, where are the JV's with the
contract manufacturers?
Flextronics (Solectron), Hon Hai,
Jabil (which make product for respective
Sandisk, Apple, Nokia
and many others) and IMF Efector based
in Pennsylvania.

5) Most important, where is the pivotal JV agreement?
one with the diecasting machinery manufacturer, Buhler-

The stock answer at Liquidmetal is that "It takes time". The
shareholders gave Management five years waste opportunity,
money and resources.

The shareholders know much better than management that
TIME IS MONEY, and in Liquidmetal's case, TIME is
Payments and, worst of all, PENALTIES.

6) What has happened to Motorola? The whole world
knows that
they bet the farm 4th quarter last year and lost
on their product
introductions. BUT, we were selling
components for the PEBL (still
in production), the ROKR,
(still in production) and the RAZR, (still in production)etc.
LQMT lose the
business with Motorola? Are we
not supplying components any
more? Management needs to
EXPLAIN why Liquidmetal's
business with Motorola dropped
off. What did LQMT DO WRONG?

A very legitimate question.

7) Why is Liquidmetal foregoing marketing and making joint
ventures with the Taiwanese and Japanese? Is there a
problem for these nationalities to deal with the Korean
nationality? The last time I checked, Sony, HTC, Sharp,
Panasonic, etc. were all big players in the electronics market.
And they have capital to invest in.

Other topics, broadly swept under the rug over the years are:

1) T
he KEP Program with DARPA

2) The "partnership" with
Johnson and Johnson

Shareholders demand a MEANINGFUL update: which is
to say,
these projects are dead in the water or yes they are
ongoing and
this is the latest PERT DIAGRAM.

When will the company WEAN ITSELF off the cyclicality
of cell phones and electronics? In the CC one spoke in one
half of a sentence about going after industrial accounts.....
This is NOT a STRIKING or meaningful FORECAST, NOR
a concerted effort at planning.

A pioneer technology needs a daring chief executive

We need someone who can channel resources
and energy into nuts and bolts applications,
because he has been there and done that. It is not
the time for chasing after luxury perfume bottles
and top of the line items that sell less than 1000
units a year.

WE need someone who can go after repeat business and
high volume. That's the whole point of die casting. Run the
mold over and over and over again to recover the mold and
set-up costs. You run year in and year out, not one run for
a quarter and then switch to something else.

We need a CEO who more concerned about making it work
than in making a deal. We need a CEO who uses lawyers for
offense rather than defense, that are future oriented and not
rear view mirror oriented. We need fresh thinking and that
has to come from without the Company, not within the Company!


Finally, When is Management going to plug the hole in the

ACCUMULATED more than 150 million
. When will the Company be NET EARNINGS
? Shareholders are getting tired of repeated
EBITDA statements. As Clara once stoutly growled,
"WHERE'S THE BEEF?" When are you going to make a buck
One Year, Two Years, Never? Or is it next quarter?.
Shareholders need clarity and certainty NOW.

The Board of Directors needs to find someone who can speak
unswerving in all three and then PERFORM and
BASIS (which was recommended in March
2004 by a Board
of Directors now completely turned over).

If you don't know where you are going, you will

surely end up there.

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