Chairman's Letter

August 1 , 2008

 

Letter from the Chairman

Sales and marketing of Good Night Sleep® Strips is demanding much of our focus during this falls selling season. Initial focus group and other testing criteria indicate a strong demand for the Sleep Strips. The completion of 30 and 60 second commercials expected around August 11th will be aired during that week if available airtime can be purchased. The timing, on the heels of the Beijing Olympics, might delay our marketing dates, but certainly we expect to air by mid-august.

Coupled with the commercial effort is our PR blitz, orchestrated by TransMedia Group. This will be the first time we have supported a product debut with a PR blitz. Our decision to go this route is based upon the initial demand for the product, the size of the market [about 1.5 Billion] and our need for a sales success.

In order to insure that we had sufficient capital resources, we cut short our marketing efforts on Snorenz®, even as sales were growing substantially. A successful launch of Good Night Sleep® Strips would dwarf the revenue generated from Snorenz®.

In late July we began a telemarketing push aimed at the over 8,000 retail (ma & pa) cigar stores. Sales of our featured product, the CigarHolder™, has surprised us all, selling over 500 units during the first week. We are widening our marketing efforts to these retailers by including a selection of our other products on specially designed Point Of Purchase displays.

The weakening security markets have had an effect on our Financial Services Division. The result has caused a significant loss in income. Efforts are being undertaken to expand our services and grow this division. However, none of our financial resources will be spent on this effort and we will continue to [spend] to promote our products that are now and has always been, the major sector of our business model.

A trip to our newest Internet site, www.4goodnightsleep.com, featuring Good Night Sleep® Strips, will keep all Shareholders informed about our newest product introduction and perhaps help some get a good nights rest.

Kindest regards ,

Paul B. Kravitz
Chairman/CEO