Ann: Letter to Shareholders, General Meeting Notice & Proxy Form, page-151

Hi Vapor, The sole business discussed at the meeting was the reading of the resolutions and the results of the votes recorded by the share registry at Sundays cut off.

As many of you know I am always proactive about our company business. The reports I get from the users of the patch are that they work! I believe that the patch is a need not a want!! Many people that suffer from extreme joint pain will purchase the patch. The Board made the correct decision to make our own patches in house to take control of when we manufacture the patch and to keep the cost of production under control. Our supplier in Bristol not only increased our unit cost per patch significantly but then delayed delivery for 3 months!

We have obtained regulatory approval in Europe , The States and Australia to distribute the patch through retail outlets. I understand that PP had to develop a new Gel as Lubricen was not only becoming difficult to obtain but the price was increasing rapidly. The new Gel has been developed and chinese engineers have commenced the development of our initial manufacturing machine which is supposed to be completed by the beginning of December. Paul will then ship the machine to Switzerland and commence to produce samples of our patch for testing. I believe that in February the new machine will commence to produce patches for the market. That is how I get turnover of $750,000 per month. 10,000 patches per day time 25 days times $3 per patch to retail. With all new machines there will be issues with the production and the machine will have to be modified until all the hiccups are sorted out. I believe that within a few months the hiccups will be sorted out and we with develop ourselves another replica 4 or five machines and manufacture more patches to meet the market demand. At this point we should be manufacturing 50,000 patches per day @ $3.00 per patch. Income of $150,000 per day.

I believe our patch will be a game changer for our business!