Research, Report & Profiling Services by IPOdesktop.com AmeriChip International Inc. (ACII.OB) Analyst Report Update Stock symbol: ACII….…..………….………… Common shares (11/16/07: 185mm, est.)

Stock price 11/16/07: $0.043…….………………………….…………..Float (72mm, est.)

52-week price range: $ 0.03 - 0.20………...…….…Equity market capitalization: $8mm

Recent News…..Stock Price…..Chart…..SEC Filings

LACC TECHNOLOGY VIDEOS (click)

RECENT DEVELOPMENT

ACII Secures Vendor Numbers From the U.S. Federal Government November 15, 2007

IMPLICATIONS

May open the floodgates to high margin quotations, orders, production & backlog

May open the opportunity for quicker ordering, not delayed by labor unions

May enable ACII to access the large, latent military demand for better, cheaper machined parts that can be manufactured faster

Builds on years of successful LACC* technology introduction to Detroit manufacturers, in terms of pre-production approval process orders (PPAP), validation orders and a large proprietary software library of programmed production solutions *LACC: see Basic Report, below

VALUATION

> Compare to Force Protection (FRPT)

In January, 2004 FRPT had a market cap of $12 million

In May 2007 FRPT had a market cap of $2.1 billion

That’s an exponential, hockey-stick increase of 175 times ($12 million times 175 = $2.1 billion)

FRPT’s stock increase was based on an avalanche of military orders

We believe something similar could happen to ACII

> FRPT’s current P/E multiple

FRPT reported on November 13, 2007 that it earned $11.4mm for the quarter ended September 30, 2007, which is an annualized rate of $45.6mm

At $15 per share with 68mm shares outstanding, FRPT’s P/E multiple is 22, annualizing the September quarter results

INTERMEDIATE TERM POTENTIAL ACII MARKET CAP

> Revenue potential assumptions

Based on the above "IMPLICATIONS" comments, we believe it is possible that ACII could be shipping in the range of $25 million for the quarter ending August, 2008

Which is an annual run rate of $100 million

> Gross margin & profit potential assumptions

Gross margins for the quarter ended August 2007 were 78%, so let’s say that for the military (based on volume orders) the gross margin declines to 40%

SG&A expenses are minimal regarding new contracts at this point, so it is possible that ACII can show a 10% after tax annualized profit run rate at a 40% gross margin

Which equates to a $10mm after-tax annualized profit rate for the quarter ending August 2008

> Price earnings multiple assumptions

At a 22x earnings multiple (FRPT’s multiple) ACII’s market cap could, therefore, be in the range of $220mm

With an estimated 185mm shares issued and outstanding, and if the above assumptions become reality, then the share price could approach $1.20 within nine or ten months

With significant upside potential from that price

FINANCING OPTIONS

AmeriChip International Inc. Secures Lease Financing of $125 Million Annually (click)

================== Basic ACII Analyst Report

BUSINESS

ACII enables lower cost, higher quality clean manufacturing by using environmentally-friendly, patented technologies, trade secrets and other intellectual property

The company’s mission is to dominate the worldwide dry machining market, particularly the multi-billion dollar metal turning segment for machining steel parts such as axle & drive shafts, connecting rods, axle tubes & hubs and also the multi-billion dollar oil pipe coupling and threading segment

DIRECT TIER ONE CUSTOMERS

Tier One customers include the following: General Motors, Ford, Eaton, Magna, Daimler Chrysler, Honda, Toyota, Caterpillar and others. Major customers are able to benefit greatly from the patented Laser Assisted Chip Control (LACC) system

HIGH PRIORITY Laser Assisted Chip control customers include

1) General Motors Powertrain

2) Ford Powertrain

3) Eaton Corporation Powertrain

4) Caterpillar Truck and Tractor

5) American Axle & Manufacturing

6) Oil Pipe & Couplings companies

ACII is running PPAP (pre-production approval process) orders for (1) to (6) above

VIBRANT MANUFACTURING MARKETS

The markets for the LACC technology process are not limited by geographic areas. The markets sectors are automotive, aircraft, oil pipe manufacturing, heavy equipment manufacturing, farm implement and manufacturing processes that machines long stringy chip producing metals.

CLEAN GREEN MANUFACTURING

The elimination of coolant in the process of machining addresses governmental demands to reduce pollutants by transitioning to clean, low cost manufacturing processes, championed by city, county and federal agencies. AmeriChip belongs to and supports the efforts of the Supplier Partnership for the Environment which is a collaboration of suppliers, manufacturers and government (EPA) that shares information and "Best Practices" to help attain a cleaner and safer work place.

GROWTH PLAN

Internal growth, driven by increased production of finished assemblies and lasered parts, produced and assembled in AmeriChip’s current 50,000 square foot plant and other domestic manufacturing plants. In addition new plants are expected to be built around the world to support the extended geographic footprints of major strategic, manufacturing customers/partners

Roll-up acquisition strategy, where AmeriChip acquires manufacturing plants that specialize in machine turning to which the LACC technology process is directly applicable, thereby increasing plant profit margins (substantially) and enabling acquired plants to increase market share with lower cost, higher quality output

AmeriChip's LACC technology and process creates a low cost, high output "Green Factory" anywhere in the world. AmeriChip believes that its domestic and international revenue growth will be based on the two major growth drivers.

Address: 24700 Capital Blvd., Clinton Township, Mi. 48036 Telephone: 905-898-2646 CEO: Marc A. Walther Web Site: http://www.americhiplacc.com State or other jurisdiction of incorporation or organization: NV Transfer Agent: Pacific Stock Transfer – Las Vegas NV Investor contact: R. Windsor at 905-898-2646, r.windsor@americhiplacc.com

LASER ASSISTED CHIP CONTROL (LACC) process

testimonial

Eaton Corp (NYSE:ETN, $14 bb market cap), Mike Meyers

Manufacturing Manager & Six Sigma Black Belt

"AmeriChip LACC technology has literally re-defined manufacturing. "We now can achieve throughput yields never before realized in our industry, along with large amounts of cost reduction and elimination, such as coolant and safety problems. Additionally, with this technology, our capacity has increased our margins, offsetting the need to increase our capital equipment base, in fact we can now decrease it."

MARKET TRENDS & SIZE

Cost Reduction

The current trend is to manufacture parts in countries other than the United States, in countries which have lower labor rates and less regulations on environmental safety and disposal.

The parts manufacturing market constantly moves towards cost reductions that reduce the amount of capital equipment and labor, in an attempt to increase return on investment (ROI). That’s why plants have been relocated or outsourced to areas were lower labor rates can be achieved. In the metal turning manufacturing segment, equipment in most plants has been optimized based on conditions which existed many years ago.

The outsourcing market trend strengthens AmeriChip's ability to introduce an evolutionary, lower-cost, dry-machining solution to manufacturers. AmeriChip’s solution reduces labor and capital equipment, and increases manufacturing thru-put.

Market development

The turning machine industry manufacturing process currently produces long stringy, toxic-laden chips that interfere with the manufacturing process, by clogging turning machines. Relative to AmeriChip’s manufacturing process, current manufacturing process uses large amounts of labor, capital equipment and toxic fluid coolants.

Long term dry-machining market development is expected to be concentrated in the manufacturing of parts for original parts manufacturers (OEM) including General Motors, Ford, Eaton, Toyota, Honda, Nissan, Daimler Chrysler, Caterpillar, John Deere, Hydril and Grant Prideco . If AmeriChip fully implements the LACC technology process for the above prospects then the overall, annual revenue potential revenue may be in the range of $1 billion.

The markets for the LACC process are not limited by geographic areas. The markets segments are automotive, aircraft, oil pipe manufacturing, heavy equipment manufacturing, farm implement and anyone whose machining process used long stringy chip producing metals. The potential overall size of the markets for dry machining worldwide appears to be in the billions of dollars.

LACC technology address market trends

The LACC technology process addresses most of the market trends on many levels.

Increased through-put achieved from optimum chip control using the LACC process reduces the percentage of the cost per unit (CPU) of labor and capital equipment so significantly that the manufacturer can re-evaluate his part cost models and reevaluate the reason for outsourcing to other lower labor cost geographic areas.

The same quantity of parts can be produced faster and with a smaller number of machines, which reduces the capital expenditure as related to the CPU (cost per unit). Coolant has been documented by the industry to be 14 to 17% of the cost of machining

The LACC process does not require coolant, and coolant is not recommended. With AmeriChip’s dry machining LACC technology process, the clean smaller steel chips can be recycled so the customer receives additional revenue steel chips are not contaminated and chopped up to a recyclable size. Currently a manufacturer must clean and chop up the long stringy chips or he receives no return value from the steel recycler.

Future growth opportunities will be greatly increased by manufacturing parts in AmeriChip owned plants in various parts of the world, addressing automotive and other machining markets as a direct supplier.

COMPETITIVE ADVANTAGES OF LACC

Laser Assisted Chip Control technology has a number of competitive advantages including:

▪ Increases quality and produces tighter, cleaner, stronger pipe threads for the oil pipe industry, for example, with a rejection rate nearly 0%

▪ Reduces cost by reducing cycle time, down time, capital expenditures, labor, and by increasing: throughput & tool life.

▪ Enables a clean manufacturing, green environment by eliminating toxic coolants and creating a safer work environment.

Benefits of the LACC Process

Reduction in Capital Equipment - increased thru-put due to faster feed rates, increased depth of cut and a reduction in down time due to chip control issues. Capital equipment is significantly reduced to directly effect the CPU (Cost Per Unit).

Reduction in labor directly connected to automation becomes an option with LACC control, manual loading and manual gagging can be eliminated.

Coolants can be eliminated (Dry Machining) reducing cost per unit and provide for a cleaner and safer work environment.

Forging cost reductions utilizing round bar stock in place of expensive forgings.

Safety is greatly improved reducing operator injuries and time lost from chip related injuries.

Reduction in tool cost with better chip control the heat is reduced in the work piece and tool. This eliminates thermo shock and hardness changes in the work piece.

Machining down times associated with poor chip control are greatly reduced or eliminated. Increasing productivity, reduced cost per unit, predictable tool wear, and significant reductions in parts being scrapped due to chip drag and tool breakage.

Competitive operating advantage using less capital equipment and labor thus reducing cost per piece.

Green machining requires no need to utilize cutting fluids to manage chip control, resulting in savings on disposal and reduced work environment contamination.

Zero Waste / Zero Landfill

SUSTAINING COMPETITIVE ADVANTAGES

AmeriChip long term, strategic competitive advantages includes on-going partnerships with leading, world class very large manufacturing organizations

DRY MACHINING TECHNOLOGY

used to produce both finished assemblies and processed parts. There are three methods of packaging and delivering the technology.

Manufacture and assemble customer parts complete in an AmeriChip facility

Apply the LACC process to customer parts and deliver to customer’s locations

License the customer to use the LACC process for specific parts on customer’s manufacturing floor or in the supply chain.

COMPETITION

AmeriChip believes the LACC process has no direct competition, but does have two types of indirect competition.

The first is manufacturers of cutting tool and the second is other parts manufacturers, both of which have been spending millions of dollars annually for many years to eliminate the chip control problems inherent in machining long stringy chip producing metals.

Over an 80-year time frame, the indirect competitors have had little to no success in consistently breaking the chip in these materials. Coolants have also been applied to help break the chip at the "brown zone", but have had no success in its consistency. The LACC process is the only consistent process for repeatable chip control management in long, stringy, chip producing metals.

Machined parts are manufactured worldwide, and in the manufacturing arena there has been great emphasis put on cost of labor. The LACC process gives AmeriChip a competitive advantage and reduces the strain labor puts on the manufacturing cost per unit. And with faster thru-put and less down time driven by optimum chip control, less capital equipment is required to manufacture the same amount of parts.

AmeriChip truly becomes the low cost, high quality leader, especially when other costs associated with manufacturing are including, such as ability to automate, reduction in coolant usage, reduction in safety and workman compensation rates, recapture if the costs of scrap metal, true automatic gauging and so on. Machining is redefined with AmeriChip’s green, dry-machining technology process.

Competitors are weakened because they cannot control these costs and do not have the ability to compete with AmeriChip and the LACC technology process. Competitors have to stay with the conventional definitions of machining.

Also, the strategic acquisition of KSI Machine & Engineering, with its 45 year history and Tier One status, enables AmeriChip to directly access very large manufacturers who are current customers. As a result, AmeriChip can now more easily introduce the evolutionary, new dry-machining technology process to very large manufacturing companies which are looking to reduce costs, and increase quality, by outsourcing.

Foreign competition

AmeriChip expects that foreign competition will be controlled by continually updating AmeriChip patents in North America and in Europe (Euro Patents). AmeriChip is currently working on patent enhancements to extent the life of its patents and the scope of their geography.

It will always be important for AmeriChip to practice and use its own patent technology in plants owned and operated by AmeriChip. If AmeriChip does allow processing on a customer’s factory floor it is with significant documentation for "Non-practice" and the process is securely controlled by AmeriChip staff.

INTELLECTUAL PROPERTY

AmeriChip’s LACC process is protected by several patents and, just as important, a constantly growing proprietary database of customized LACC system applications designed to solve specific machining problems.

AmeriChip also has the rights to a third patent, the High Speed Mold Processing (HSMP) process, that applies to the die and mold industry which increases thru-put with high speed spindles and extruded epoxy and abrasive brushes. Thru-put can be increased by as much as 60%.

The HSMP process allows the amount of time that is required to machine and polish a mold to be reduced as much as 50%. This is done with very high speed machining spindles which sets up the platform for a extruded epoxy and abrasive brush system to automatically polish in the same machine without manual polishing. This process is currently licensed by Ford Motor Company and Visteon through prior agreements with the inventor. AmeriChip is the sole licensor of this process, but receives no royalties due to prior agreements with the companies mentioned above. The HSMP is being studied for cost modeling and implementation for licensing to other mold manufacturers.

The HSMP process will be implemented when manufacturing dies and molds or licensing other manufacturers to utilize the patented system for a monthly fee. This process is currently licensed by Ford Motor Company and Visteon through prior agreements with the inventor.

GREEN ENVIRONMENTAL & SOCIAL IMPACT

The environmental social impact of the LACC technology process is based on the ability to provide a clean manufacturing environment eliminating coolants used in the manufacturing of turned machined parts.

Toxic coolants currently being used are filled with bacteria and have disposal costs that increase annually. AmeriChip’s positive environmental impact is also magnified because the LACC technology helps provide a cleaner and safer workspace, and also provides the ability to recycle metals more inexpensively.

Government regulations

Government regulations as they relate to AmeriChip International are less intrusive than most manufacturing companies. Most manufacturers have many of their problems in work safety and environmental maintenance.

The LACC technology process removes both long stringy steel chips that cause cuts and also eliminates bacteria laden coolants that require environmental maintenance, testing and reporting.

In addition, employees lose productive hours when bacteria laden coolants splash on exposed skin and when coolant vapors are breathed into their lungs. The EPA is moving swiftly to remove coolants that contribute to a dangerous work environment.

MANAGEMENT

AmeriChip is led by a visionary management team with 118 years of combined direct experience in the metals machining and related industries, including entrepreneurial ownership.

Marc Walther

President, Chief Executive Officer, & Director of AmeriChip International Inc.

Marc Walther has owned and operated manufacturing plants in both United States and Canada with broad management experience in all aspects of the metal machining industry for over 30 years. In addition, he developed a machining patent with Ford Motor Company that applies to faster thru put utilizing high speed machining of dies and molds with accelerated polishing using extruded abrasive brushes. AmeriChip International currently is the sole licensor of the patented technology with additional licenses to Ford Motor Company and Visteon Corporation.

After joining forces with Ed Rutkowski in the original AmeriChip Inc. he was responsible for the organization and implementation of the public company now called AmeriChip International, Inc.

Roger J. Paquette

Chief Operating Officer

Mr. Paquette, a native of Detroit, attended Oakland University studying Engineering. Throughout his business career, Mr. Paquette has worked primarily within the Tier One Automotive manufacturing network, in both sales and manufacturing management. Over the past 25 years, he has been responsible for multi-million dollar projects from inception to full production. His experience includes working with major automakers such as General Motors, Ford and Chrysler.

Marc Walther stated, "Roger is an aggressive, highly motivated hands-on professional whose focus is goal oriented. His promotion to the management team is a key step in building our senior level staff. Roger has worked with us as an independent consultant for the past six months, with a primary focus being Business Development.

His immediate task will be to bring to completion the following projects: 1) General Motors Powertrain, 2) Ford Powertrain, 3) Eaton Corporation Powertrain, 4) Caterpillar Truck and Tractor, 5) American Axle & Manufacturing, 6) Oil Pipe & Couplings

Edward Rutkowski

CTO / Director of Engineering & Research & Development

Edward Rutkowski is the inventor of the Laser Assisted Chip Control (LACC) process and the founder of the original company, AmeriChip Incorporated. Mr. Rutkowski joined forces with Mr. Walther to form the new corporation AmeriChip International in 2001 with a view to marketing the LACC process.

His knowledge in the machine tool industry is accredited to his over twenty three years of experience of professional practice that included product development, product application, marketing and sales management. Throughout his career he has received many awards for his accomplishments and leadership, including recognition as an Honoree member of the Who’s Who of America. With prior career credentials in the metal removal industry, he gained industry recognition for his expertise in the dilemma caused by chip control and metals residue, and is regarded as an expert in cost control and cost reduction.

Mr. Rutkowski is responsible for the Company's Research and Development efforts, patent enhancements and oversees quality control, process design and research for new practices on manufacturing and machining.

Thomas P Schwanitz

Chief Financial Officer, Director

Mr. Schwanitz is Managing Partner of Schwanitz, Hayden & Associates, P.L.C. of Detroit , Michigan and has a Bachelor of Science – Accounting from Northern Michigan University. His professional affiliations include member of American Institute of Certified Public Accountants, Michigan Association of Certified Public Accountants, Consultant to the Association of Macomb County Life Underwriters and Financial & Estate Planning Councils of Detroit and Macomb County. Mr. Schwanitz is also a member of the Board of Directors for and is the Treasurer of the Mount Clemens General Hospital and on the Board of Trustees for Baker College, Mount Clemens.

ADVISORY BOARD

Alvin Snaper

Mr. Alvin Snaper has served as a Senior Consultant to other major corporations and organizations, including IBM, General Foods, NASA, Boeing, Gillette, Singer, U.S. Air Force, Rocketdyne, General Motors, Lockheed Aircraft, Sanyo, Philips, Gulf Western, Union Carbide, etc. He has been awarded more than 600 patents, many for significant industrial products and processes. Some of his inventions and commercial products include the IBM Selectric Type Ball, Tang, the NASA Apollo Photo- Pack, Coating Process for Gillette Razor Blades, and the Electrostatic Painting Process & System for Auto Components Assemblies for General Motors, to name a few. Mr. Alvin Snaper holds the single honor and individual distinction of being recognized three times with 'Best Patent of the Year' award by Design News magazine, and is the author of numerous technical and scientific papers.

Alvin Snaper is or has been a member the following professional societies and organizations: Who's Who of American Inventors 1990-1991; VIP Electronic Improvement Program; American Ordnance Association. He is a former consultant in ultrasonics to the Library of Congress, Armed Forces Communications and Electronics Association, International Scientific Society and The Society of Photographic Instrumental Engineers.

John Aguero

Mr. Aguero is an independent consultant who is considered an expert in working within the United States government system and is responsible for being awarded many contracts over the past 25 years. Mr. Aquero served in Vietnam under one of the Army’s most dedicated and distinguished Generals, General Westmoreland.

Mr. Aguero has hosted the Chinese Department of Administry in concert with the Los Angles Port Authority in the last few years. He has led and been a part of executive teams in restructuring companies, negotiating contracts, building manufacturing plants, building distribution facilities/centers, and establishing world-wide government and private sector contacts. Mr. Aguero is a skilled businessman who has been involved I startup ventures, global business development, licensing of technologies and assisting with strategic partnerships, alliances and tactical planning with both the public and private sectors. He serves on many boards.

IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID expects to be paid at the rate of $5,000 per month as of April 1, 2007 for compensation for preparation and posting of this report, other reports, interviews, video reports and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.