SmallCapVoice.com, Inc., a recognized corporate consulting firm known for its ability to help emerging growth companies build a following among retail and institutional investors, provides the following market commentary and small cap stock highlights:

Stocks Extend Decline Ahead of Bailout Vote and Weak Manufacturing Report

Stocks are extending their declines as a weaker-than-expected reading on the manufacturing sector is fanning Wall Street's worries about the health of the economy.

The report from the Institute for Supply Management reveals a troubling drop in new orders. The news is raising concerns about the economy while investors await a possible Senate vote on the financial bailout package.

The Institute for Supply Management's index fell to 43.5 in September from 49.9 in August. Wall Street had expected the trade group's index would come in at 49.5, according to economists polled by Thomson/IFR.

In midmorning trading, the Dow Jones industrial average fell 210.91, or 1.94 percent, to 10,639.75. The Dow fell 778 points Monday then rallied 485 points Tuesday.

Broader stock indicators also dropped. The Standard & Poor's 500 index fell 23.26, or 2.00 percent, to 1,141.48, and the Nasdaq composite index fell 42.53, or 2.04 percent, to 2,049.35.

Demand for the safety of government debt increased. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.67 percent from 3.83 percent late Tuesday. The yield on the 3-month T-bill, the safest type of investment, fell to 0.73 percent from 0.88 percent late Tuesday. The decline in yields indicates that investors are willing to accept even modest returns to protect their money.

Tuesday’s Top Performing SmallCapVoice.com stocks:

Seven Arts Pictures plc (Pink Sheets: SAPXF) was yesterday’s SmallCapVoice.com top performer moving up over 4% on trading volume of 23,678 shares.

Seven Arts Pictures plc announced the delivery of Drunkboat directed by Bob Meyer, and starring John Malkovich and John Goodman. Initial revenues on the movie will be realized in this fiscal year 2009.

Today’s SmallCapVoice.com Hot Stock to Watch:

 ZAGG Inc. (OTC BB: ZAGG) is today’s hot stock to watch.

RedChip Visibility, a division of RedChip Companies, Inc., announced today that it has issued a second quarter 2008 research update for ZAGG, Inc., a company that designs, manufactures and distributes protective clear coverings and accessories for consumer electronic and hand-held devices under the brand name invisibleSHIELD(tm).

Ekta Bhatia, MBS, RedChip Research Analyst, reported:

``Ahead of expectations, ZAGG demonstrated profitability in 2Q08 which we believed, comparatively, to be a sluggish quarter. The Company maintained its revenue drift, accomplishing 240% year-over-year revenue growth in the second quarter, and we expect firm growth going forward as the third and fourth quarters are usually fundamentally strong.''

``ZAGG is aggressively pursuing alliances with big box retailers, and we believe these alliances will be catalysts to the Company's successful penetration in the market. Although ZAGG has competition, its first-mover advantage and reliable business association both at the back and front ends will give it an edge over the next two to three years,'' she continued.

``We believe ZAGG's evolution as an exclusive distributor of protective electronic coverings has been very impressive, and it offers a conservative investment opportunity in a specialty retail segment. We maintain our 'Speculative Buy' rating and have revised upward our 12-month target price to $2.25 to encapsulate the recent revenue and business gains amidst a difficult economic environment,'' Bhatia concluded.

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SmallCapVoice.com is a recognized corporate investor relations firm, with clients nationwide.  Known for its ability to help emerging growth companies build a following among retail and institutional investors, SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its client's financial news releases. SmallCapVoice.com also offers individual investors with all the tools they need to make informed decisions about the stocks they are interested in. Tools like our stock charts, stock alerts, and our investor fact sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets.

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