Chairman's Letter

August 17, ,2007

 

TheraPedic CS™ Innersoles goes live on August 22, 2007. This show will be aired nationally on TV cable. More information on the stations, locations and times will be forthcoming. As results are scrutinized, we will add and drop stations and continue the broadcasts thru December. Once again, we will study the results and if warranted we will spread our program to capture some Broadcast TV.

TheraPedic CS™ is a product that has universal appeal. In test after test we have received glowing reports from users who suffer from neuropathy, diabetes, edema and foot sweating. Those who don’t suffer from any disease at all, just enjoy the gentle massage while walking, they just feel less tired. This is a real find for Med Gen and over time should produce $5-$10 million in sales. A successful launch could generate as much as $2 million in revenue. Thus, we have taken the time, tested what we received from our joint venture partners in Australia and now feel as though our additional investment will pay off. While I cannot predict with any certainty the success or failure of this program, given the multitude of variables, I believe we have a winner in TheraPedic™.

With regard to Painenz®, Home Shopping Group tells us they will be ready to launch shortly after shooting an entirely new commercial. Painenz® is one of those products that should be in everybody’s medicine chest. Who doesn’t suffer from some pain or ache? Our Roll-On, first marketed by us in 1998, was the first pain-relief formula to use roll-on technology. The remarkable thing about Med Gen is that while we have not always had the capital to launch products properly, we have come up with truly unique and desirable products…..Think HeadOn and BreathRight.

Snorenz®, GoodNights Sleep® amd UnDiet® all, are being readied with new and exciting commercial looks. While the full impact of our collective energies will not be felt until the second quarter of 2008, as we go live with our commercials I expect to report modest revenue increases as they occur.

While we have had our share of disappointments in the past, we have used the lessons learned as part of the asset build-up of our company. From the very beginning we have tried to correct the under valuation of our shares, like so many other disappointments I believe that this too is soon to be corrected.  A continued reporting of these modest gains will eventually correct the streets notion of Med Gen, and erode any prevailing doubts in our ability to perform. At that point…watch out!

Yours truly.
Paul B. Kravitz

Chairman/CEO