not long now, page-6

Hi Ruff

Regarding POH vs OBJ

There are two arms to the Phosphagenics business:

1. The development and marketing of dietary supplements, functional foods and personal care products. The highlight here is a research and option
agreement with Nestle Nutrition to consider the possibility of including Phospha-E (phosphated tocpheryl, Vitamin E) in food, although this is
still at an early R&D stage.

POH also has a licensing agreement and receives royalties from Zila Nutra Inc for the use of Phospha-E in dietary supplements.

2. POH also uses phosphorylation (the addition of a phosphate group to a chemical entity) technology to enable drugs like morphine or insulin to be administered across the skin (transdermally).

Still pre-clinical, POH has a development agreement with
Alza Corporation.

At June 30, POH had $8.9m cash at hand and is burning
$700,000 per month.