Chairman's Letter

October 17,2007

 

I remember early on being told that experience is something you don’t get until after you need it. How true those words are. You can add to that, experience is the best teacher. Either way, we are getting a lot of experience at Med Gen and learning a lot.

Shareholder comments over the past few months run the gamut of pitiful to complimentary. Few understand the poor odds of a successful advertising campaign and the huge amount of capital needed to succeed. Only a few investors that I personally spoke with understand the 80% average failure rate. Yes, 1 out of every 20 campaigns ever make money. When the company turned to Direct To Consumer Marketing, we realized what we were up against. We had to be careful. Test and re-test- tweak and re-tweak until we knew we had something to spend our capital on. From what I have heard, this mode of operation has pleased few. No matter! The results of being careful will soon bear fruit in our soon to be aired commercials. In the end success can be easily measured in increased revenue.

Our newest product, FABULUST® has caught the attention of new investors and marketing gurus as well. I can’t remember when a new product has caused so much excitement. I really believe that we have a winner here. Once again, some quick testing in some smaller publications should prove out our new campaign and allow us to spread our wings and our dollars, advertising in Hustler, Playgirl, and Playboy and on to very sophisticated TV commercials. Once again, we have a several billion-dollar market to play in. Being frugal at the beginning will leave us with big bucks to invest if we are proven right. I know I have acted properly in my conservative approach to this issue, although I am also aware that I have been bitterly contested.

As always, I am willing to try something new and thus I am publishing a series of ads on this site for those interested enough to comment on. We have invested heavily in the production phase and I am truly interested in your thoughts as well. Your comments, good or bad, are always appreciated.

The next few months, as promised, will be an exciting time for Shareholders and Management alike. Don’t doubt our direction.

My very best wishes,

 

Paul B. Kravitz
Chairman/CEO