REPORT OF INDEPENDENT AUDITORS

Radix Ventures, Inc.
New York, New York

We have audited the  accompanying  balance sheets of Radix Ventures,  Inc. as of
July 31,  1994 and  1993 and the  related  statements  of  income  and  retained
earnings and cash flows for each of the three years in the period ended July 31,
1994. Our audits also included the financial  statement  schedules listed in the
Index  at  Item  14(a).  These  financial   statements  and  schedules  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects,  the financial  position of Radix Ventures,  Inc. at July
31, 1994 and 1993, and the results of its operations and its cash flows for each
of the three  years in the  period  ended  July 31,  1994,  in  conformity  with
generally  accepted  accounting  principles.  Also, in our opinion,  the related
financial  statement  schedules,  when  considered  in  relation  to  the  basic
financial  statements taken as a whole,  present fairly in all material respects
the information set forth therein.

As discussed in Note 5 to the financial statements,  in 1992 the Company changed
its method of accounting for income taxes.







                                          ERNST & YOUNG LLP



New York, New York
September 30, 1994







                                   EX99-B.01