Chairman's Letter

February 27, 2008

 

Letter from the Chairman

Dear Shareholder,

The chatter and rumor mill continues unabated. There must be some sort of thrill that abounds for those who wish to continually bash and spread false rumors about Med Gen. So before I report some good news, let me dispel, once and for all, any thoughts of bankruptcy or reverse splits. They are simply not on the agenda of our Board or contemplated by our lenders.

The company is well funded now and future funding has been committed too, as our needs require. Both our lenders and our management have studied our products and markets, both believe that attaining our very conservative goal of .5% of market share will be more than ample to repay all the debt now carried by the company, leaving sufficient profit to grow the business.

The InfoWorx® Snorenz® commercial goes live on Monday, March 3rd. For those interested in following the commercials I have listed the information below.

                                    Station     Days      Rotation
                                    GAME     M-SUN  9AM-3PM
                                    GAME         “         3PM-7PM
                                    GAME          “         12A –4AM
                                    FOX NEWS “         2AM-8AM
                                    HGTV       M-F        9AM-8PM
                                    HGTV      M-SU     8PM-11PM
                                    HGTV      SA-SU    9AM-8PM
                                    LTRW      M-SU     6AM-12PM
                                    LTRW      M-SU     12PM-6PM : 6PM-12AM
                                    CNN         M-SU     12PM-6PM;  6PM-12AM
                                    HALLMARK
                                    MOVIE CH. M-SU 6PM-12AM: 12AM-2AM
                                    FOOD HD M-SU    7AM-6PM: 6PM-12AM

All told, the test will consist of 215 airings after which, sales will determine if the commercials need to be reworked and re-tested. If the commercials are successful, we will continue running them, increasing their rotation to maximize sales.

The CigarHolder™ advertisements in Money and Fortune magazines are starting to pull and sales are coming in daily. While this is a niche product, we do own the Patent and our studies show a market in excess of $100 million. Certainly a worth while piece of business to go after.

Lastly, Hustler Magazine (March issue) is at the News Stands. We know this because our sales of Fab U Lust™ have taken off. As you all know, we are producing a series of commercials featuring Sunset Thomas. These commercials are promised in 5 weeks. We have plans to air these commercials throughout the adult Cable TV networks.

All in all, we are planning to spend over $500,000 in commercials through the winter and into the spring, featuring our products in almost every media we can, expecting very satisfying results and good news to report in future communications.

Yours truly,
Paul B. Kravitz

Chairman/CEO