Form: 10KSB

Optional form for annual and transition reports of small business issuers [Section 13 or 15(d), not S-B Item 405]

March 30, 2007

CAUTIONARY STATEMENTS

Published on March 30, 2007



EXHIBIT 99.01

CAUTIONARY STATEMENTS FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

The Private Securities Litigation Reform Act of 1995 provides public
companies with a "safe harbor" from liability for forward-looking statements if
those statements are accompanied by meaningful cautionary statements identifying
important factors that could cause actual results to differ materially from
those contained in the forward-looking statements. The Company hereby identifies
the following important factors which could cause the Company's actual results
to differ materially from those contained in any forward-looking statements made
by the Company from time to time in any report, proxy statement, registration
statement, or other written communication or in oral forward-looking statements
made from time to time by the Company's officers, directors, employees, or
agents.

THE COMPANY HAS A DEPENDENCE ON A MAJOR CUSTOMER

The Company depends on adequate royalty income from Novartis to fund
continuing operations. Currently the Company has no other licensing arrangements
in place. Furthermore, Novartis made a voluntary product recall of the Company's
licensed products in June 2006. Effectively, the Company's revenue stream has
ceased until the product is reintroduced in the USA or other territories covered
under the Agreement and Food and Drug Administration ("FDA") issues are
resolved.

PATENTS AND OTHER PROPRIETARY RIGHTS PROVIDE UNCERTAIN PROTECTION OF OUR
PROPRIETARY INFORMATION AND OUR INABILITY TO PROTECT A PATENT OR OTHER
PROPRIETARY RIGHT MAY ADVERSELY AFFECT OUR BUSINESS

The patent position of companies engaged in the sale of products such as
ours is uncertain and involves complex legal and factual questions. Issued
patents can later be held invalid by the patent office issuing the patent or by
a court. We cannot assure you that our patents will not be challenged,
invalidated, or circumvented, or that the rights granted there under will
provide us a competitive advantage. In addition, many other organizations are
engaged in research and development of products similar to our therapeutic
consumer products. Such organizations may currently have, or may obtain in the
future, legally blocking proprietary rights, including patent rights, in one or
more products or methods under development or consideration by us. These rights
may prevent us from commercializing new technology, or may require us to obtain
a license from the organizations to use their technology.

We also rely on trade secrets and other unpatented proprietary information
related to the manufacturing of our therapeutic consumer products. To the extent
we rely on confidential information to maintain our competitive position, there
can be no assurance that other parties will not independently develop the same
or similar information.

There has been substantial litigation regarding patent and other
intellectual property rights in the consumer products industry. Litigation could
result in substantial costs and a diversion of our effort, but may be necessary
to enforce any patents issued to us, protect our trade secrets or know-how,
defend against claimed infringement of the rights of others, or determine the
scope and validity of the proprietary rights of others. We cannot assure you
that third parties will not pursue litigation that could be costly to us. An
adverse determination in any litigation could subject us to significant
liabilities to third parties, require us to seek licenses from or pay royalties
to third parties or prevent us from manufacturing or selling our products, any
of which could have a material adverse effect on our business.

WE HAVE A HISTORY OF LOSSES

The Company incurred a net loss for 2006 and 2005, due in part to receiving
inadequate royalty income to cover operating expenses. Although we have
generated differing levels of net income (losses) over the last few years, the
Company was profitable in 2004 due to profitable manufacturing operations and
the receipt of licensing fee income, but has been unprofitable over the last
couple of years because royalty and licensing fee income was not sufficient to
cover operating expenses. We may incur future losses if royalty and licensing
fee income is not sufficient to cover operating expenses.



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IF LICENSEES OF OUR PATENTS DO NOT COMPLY WITH REGULATORY REQUIREMENTS WHEN
MARKETING PRODUCTS WHICH RELY ON OUR PATENTS, OUR ROYALTIES COULD BE NEGATIVELY
AFFECTED

The research, development, manufacture, labeling, distribution, marketing,
and advertising of products that are sold by licensees in reliance on our
patents are subject to extensive regulation by governmental regulatory
authorities in the United States and other countries. Failure by such licensees
to comply with regulatory requirements for marketing their products could
subject them to regulatory or judicial enforcement actions, including, but not
limited to, product recalls or seizures, injunctions, civil penalties, criminal
prosecution, refusals to approve new products and suspensions and withdrawals of
existing approvals. This in turn could decrease the revenues generated by such
patent licensees and thereby decrease our royalty income.

IF PRODUCTS RELYING ON OUR PATENTS ARE NO LONGER REGULATED AS
OVER-THE-COUNTER PRODUCTS, OUR ROYALTIES COULD BE NEGATIVELY AFFECTED

Currently, many of the therapeutic consumer products that are sold that rely
on our patents are regulated as over-the-counter products. We cannot assure you
that the FDA will continue to regulate these products as over-the-counter
products. If the FDA changed its approach to regulating such therapeutic
consumer products, the licensees would be faced with significant additional
costs and may be unable to sell some or all of the products. Any such change
could have a negative affect on the licensee's revenues, which in turn could
decrease our royalty income.

WE HAVE LIMITED STAFFING

Our success is dependent upon the efforts of the Board of Directors. The
Company currently has one full time employee whose efforts are focused on the
external reporting requirements of the Company and maintaining the day-to-day
operations. Furthermore the Company is considered a small business issuer, as
defined by the Securities and Exchange Commission ("SEC"). There is legislation
related to the Sarbanes-Oxley Act of 2002 ("SOX"), which will impact the
Company. Efforts to become compliant under the parameters of SOX could be costly
to the Company despite the internal controls the Company has in place. If this
key employee or members of the Board of Directors decide to depart from the
Company, we could be adversely affected if suitable replacement personnel or
directors are not quickly recruited. The current condition of the Company may
make it difficult to retain and attract, if necessary, qualified personnel.

THE PRICE OF OUR COMMON STOCK COULD BE HIGHLY VOLATILE DUE TO A NUMBER OF
FACTORS

The trading price of our common stock may fluctuate widely as a result of a
number of factors, including:

- trading of our common stock on the OTC Bulletin Board and fluctuations
in price and volume due to investor speculation and other factors that
may not be tied to the financial performance by the Company;

- performance of products sold by licensees in the marketplace;

- regulatory developments in both the United States and foreign countries;

- market perception and customer acceptance of products sold by licensees;

- outcomes related to the Company's efforts to protect its patent
portfolio;

- increased competition;

- relationships with licensees;

- economic and other external factors;

- timing and frequency of dividend distributions, if any; and

- period-to-period fluctuations in financial results.


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