Chairman's Letter

April 12, ,2007

 

EXCERPTS FROM AN ADDRESS PLANNED FOR THE ANNUAL SHAREHOLDERS MEETING:

Is it time for Micro-mini growth stocks to shine? Is it time for Med Gen and companies like it to finally come of age. Why not!

Submitting itself and its management to rules no different than the NASDAQ and burdened by the same Sarbanes-Oxley Act reporting procedures, makes OTCBB stocks no less safe than its NASDAQ big brothers. So, is this our year?

Some investment professionals believe that this is the year for growth stocks – shares of companies with the potential to significantly increase revenue and have the potential for strong earnings growth….At least this is the thinking of Ian Salisbury writer for the Wall Street Journal. He differentiates between growth and value stocks-[companies that are still right-sizing and re-inventing themselves (growth) and (value), mature companies that are under-priced]. His differentiation is right on target, the problem is very few investors see things as clearly as Ian does and so there is much confusion between value stocks and growth stocks. My point here is that Med Gen fits squarely into the growth category.

While, the concept of growth escapes many who trade in micro-cap public stocks, I think there is a gross exaggeration in the disparity of comparison between NASDAQ traded stocks and those traded on the OTCBB - that is, other than the disparity of price. For the most part both the NASDAQ and OTC companies share common problems and compete for the same ever dwindling supply of capital. The NASDAQ companies always winning when it comes to getting the “right deal”, forcing the OTC group to scrounge around – bottom feed so to speak, happy to deal with Hedge Funds who only offer deep discounted convertible debentures…..the kind that makes for a lot of dilution. Nevertheless, there is a tremendous upside, that being the low per share price. This allows an investor to make huge percentage gains, receiving large amounts of shares while risking relatively small amounts of money; and, if his pick is right and the company breaks out, making larger than life profits.

So, in reality, companies like Med Gen are able to obtain capital, young investors with modest means can participate in the great American dream and both sides can profit and grow from the experience. Now tell me, what’s wrong with this…. And why on earth would we want to change the rules now?

As I see it, Med Gen is a growth company. Our opportunities are large because our products span a market place in the billions….over 1 hundred billion, and while the cost of entrance to this market place, measured in dilution or per share price is great, so is the potential for personal gain.

As a growth company suggests, our ultimate success is measured in time, the days, months or years that it will take to get there. However, unlike most, our fundamentals are firmly in place, most of our products are ready to market or in the finishing stages of R&D. Our challenge is now all about reaching our markets… and we are moving forward in earnest every day. 

Best Wishes.
Paul B. Kravitz
Chairman/CEO