Chairman's Letter

August 15 ,2007

 

I promised myself that I would make this letter easy reading and to the point, keeping it down to one page. The Plan continues to unfold and there is much to tell.

Back in October of ’06 the struggle was tiring and getting to me. It was hard to understand that with so many great products and such large markets to sell to, why we were having such a hard time getting started. Early one morning, I woke with an idea that could bring more money into the company and at the same time curb our borrowing and the further dilution of our stock.

Thus started the MGI Financial Services Division. I have been punished for this foray into another business, even one that I know so well. But when you’re in the drivers seat, you come to expect the comments from the backseat. Now, nine months later the report card is in, the division brought in about $1.2 million, saved the company from horrendous additional dilution, production of additional commercials was capitalized, outside professionals were hired and financed and from the looks of things, in my opinion, we have really got some winners. So, how crazy am I?

Our Innersole JV using the Australian name FootFridge® and the Australian commercial didn’t quite make it. Yet, my personal trials put the stamp of approval and full support behind the project. A change in name to TheraPedic™ and a new commercial may finally produce the results we are expecting. The commercial will be ready to air n a few weeks.

Never far from my reach on my night table and a winner of many awards, our famous roll-on pain killer, PaineEnz® has been given a similar going over.

Snorenz®, after two years absence from TV exposure, is set to go back on the air. The product now wears a new logo, new packaging and a new commercial. So too is Good Nights Sleep®.. Frankly, we have re-invented ourselves because we still believe that we have products worth over $400 million at retail: and, if we’re only half right, you, our Shareholder, would own stock worth 1000 times more than today….That’s a real score for everybody and I believe in my heart of hearts. It can happen.

My message is clear and uncluttered and because I want to prove my sincerity and the greatness of our products, I am offering you a chance, before they get sold out on the TV show, to buy our TheraPedic CI™ Innersoles. The same magic innersoles that I have been enjoying everyday since I got the first sample pair. Walking can be a pleasure once again.

At 75, I have every pain and ache you can imagine. Now I can walk longer, my feet are cooler (even in Florida’s heat) and they don’t swell as much. If you suffer like I did, please, please, please, try them at this very special price. By a pair and get a pair at ½ price That’s right, two pair for only $29.95 freight free. Feel like a million dollars for only $29.95.

Now! Go out and do the right thing! Call our office at 1-800-521-9311or on line www.medgen.com and order yours today. Then go out and buy more stock.

Thanks for keeping the faith.

Paul B Kravitz
Chairman/CEO