Subject: File No. 265-23
From: Steve Nagel, President
Affiliation: Kolorfusion International, Inc.

June 8, 2005

To: Advisory Committee

I would like to see the rules for compliance to Sarbannes-Oxley amended, such that small public companies would not be required to comply if they have less than $10 million in revenue. Small companies with assets over $10 million would have to comply even if their revenues were under $10 million. The burden for compliance takes an undue amount of capital, which could be used to grow the business and employ others. Likewise it is difficult to attract the needed outside directors, compensation committee members, etc. without D&O insurance and other compensation, again defeating a better use of capital for growth.

Steve Nagel
Kolorfusion International, Inc.