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Letter to Shareholders
1/31/06
Dear Shareholders,
When we launched Swiss Medica in June 2003 our goal was to commercialize a family of healthy proprietary bioscience products that relieve chronic ailments that impact all of us and our loved ones. Since then we have launched O24™ Pain Neutralizer, O24 Fibromyalgia™ and PMS Escape® nationally in the United States and Canada.
Our focus has always been to acquire and/or license patented over-the-counter health products that are all-natural, clinically tested and address chronic ailment categories that are currently dominated by prescription drugs. We believe these attributes are
what differentiate us from our competition.
To recap some of our successes over the past 2.5 years:
• Our revenues for fiscal 2005 were US$6.42 million,
compared to approximately US$600,000 in revenues in 2004.
• We have expanded our product distribution to over 21,000 retailers (up from 300 as of December 2003) in Canada and the United States the top drug store retailers in the United States (CVS/Pharmacy and Rite Aid) and all major mass/food/drug store chains in Canada (Shoppers Drug Mart, Loblaws and Wal-Mart Canada to name a few).
• We have clinically tested and have launched in the United States and Canada O24 Fibromyalgia™ as the FIRST focused product for fibromyalgia available in national retailers. Fibromyalgia is a chronic pain ailment that impacts over 10 million Americans. The National Fibromyalgia Association in California has bestowed upon O24 Fibromyalgia™ their official Seal of Approval.
• We acquired the exclusive licensing rights to PMS Escape® the first and only clinically tested and patented over-the- counter dietary supplement for the management of mood, appetite and the ability to concentrate associated with pre- menstrual syndrome, a market that effects up to 27 million women in the Unites States alone. PMS Escape® is now available in retailers in the USA and Canada.
• O24™ Pain Neutralizer has received strong endorsements from recognized leaders in sports (Olympic and professional athletes), medical professionals, and consumer associations (regional arthritis groups in North America, National Fibromyalgia Association).
• O24™ Pain Neutralizer was the third best selling Topical Pain Reliever in Canada in 2005, outselling Ben-Gay, Tiger Balm and Icy Hot (based on dollar sales), according to market research firm ACNielsen Canada.
• Swiss Medica and O24™ Pain Neutralizer were awarded Company of the Year and Product of the Year by the Northern California Arthritis Foundation in 2005.
• In a randomized double blind clinical study conducted in 2005, 88 per cent of the patients who used O24 Fibromyalgia™ reported mild to markedly better improvement from their fibromyalgia pain, versus only 7 per cent who used the placebo. The results of this study were published in Practical Pain Management, a medical journal, in January 2006.
• In addition on February 2, 2006, we announced that the Practical Pain Management Journal, in their January/February 2006 issue, published Dr. Ko’s Randomized Double Blind Clinical Trial on Swiss Medica’s O24 Fibromyalgia™.
Over the next 24-months Swiss Medica has severalmajor goals, including:
• Expand our retail distribution from our current focus on drug store chains to mass market, food and convenience retailers.
• Achieve national distribution of our products in professional channels such as physician offices, pain management clinics, chiropractors and hospital pharmacies.
• Launch Swiss Medica products into international markets outside of the United States and Canada.
• Launch other world class patented, clinically tested safe and effective products for chronic ailments such as depression and cholesterol.
• Build Swiss Medica into a leading consumer healthcare brand focused on elite over-the-counter health products for chronic ailments.
• Create substantial shareholder value.
• Move to a major stock exchange.
Swiss Medica has come a long way since its launch in mid 2003. The coming year is one of great promise and tremendous opportunity. I urge you to visit our websites www.swissmedica.com, www.O24zone.com and
www.pmsescape.com to learn more about our company and products. I am confident that you will join the thousands of people who have used our products to enhance the quality of their lives.
Thank you for your continued support of Swiss Medica.
Raghu Kilambi, CA
CEO
Swiss Medica, Inc.
Letter to Shareholders
1/31/06
Dear Shareholders,
When we launched Swiss Medica in June 2003 our goal was to commercialize a family of healthy proprietary bioscience products that relieve chronic ailments that impact all of us and our loved ones. Since then we have launched O24™ Pain Neutralizer, O24 Fibromyalgia™ and PMS Escape® nationally in the United States and Canada.
Our focus has always been to acquire and/or license patented over-the-counter health products that are all-natural, clinically tested and address chronic ailment categories that are currently dominated by prescription drugs. We believe these attributes are
what differentiate us from our competition.
To recap some of our successes over the past 2.5 years:
• Our revenues for fiscal 2005 were US$6.42 million,
compared to approximately US$600,000 in revenues in 2004.
• We have expanded our product distribution to over 21,000 retailers (up from 300 as of December 2003) in Canada and the United States the top drug store retailers in the United States (CVS/Pharmacy and Rite Aid) and all major mass/food/drug store chains in Canada (Shoppers Drug Mart, Loblaws and Wal-Mart Canada to name a few).
• We have clinically tested and have launched in the United States and Canada O24 Fibromyalgia™ as the FIRST focused product for fibromyalgia available in national retailers. Fibromyalgia is a chronic pain ailment that impacts over 10 million Americans. The National Fibromyalgia Association in California has bestowed upon O24 Fibromyalgia™ their official Seal of Approval.
• We acquired the exclusive licensing rights to PMS Escape® the first and only clinically tested and patented over-the- counter dietary supplement for the management of mood, appetite and the ability to concentrate associated with pre- menstrual syndrome, a market that effects up to 27 million women in the Unites States alone. PMS Escape® is now available in retailers in the USA and Canada.
• O24™ Pain Neutralizer has received strong endorsements from recognized leaders in sports (Olympic and professional athletes), medical professionals, and consumer associations (regional arthritis groups in North America, National Fibromyalgia Association).
• O24™ Pain Neutralizer was the third best selling Topical Pain Reliever in Canada in 2005, outselling Ben-Gay, Tiger Balm and Icy Hot (based on dollar sales), according to market research firm ACNielsen Canada.
• Swiss Medica and O24™ Pain Neutralizer were awarded Company of the Year and Product of the Year by the Northern California Arthritis Foundation in 2005.
• In a randomized double blind clinical study conducted in 2005, 88 per cent of the patients who used O24 Fibromyalgia™ reported mild to markedly better improvement from their fibromyalgia pain, versus only 7 per cent who used the placebo. The results of this study were published in Practical Pain Management, a medical journal, in January 2006.
• In addition on February 2, 2006, we announced that the Practical Pain Management Journal, in their January/February 2006 issue, published Dr. Ko’s Randomized Double Blind Clinical Trial on Swiss Medica’s O24 Fibromyalgia™.
Over the next 24-months Swiss Medica has severalmajor goals, including:
• Expand our retail distribution from our current focus on drug store chains to mass market, food and convenience retailers.
• Achieve national distribution of our products in professional channels such as physician offices, pain management clinics, chiropractors and hospital pharmacies.
• Launch Swiss Medica products into international markets outside of the United States and Canada.
• Launch other world class patented, clinically tested safe and effective products for chronic ailments such as depression and cholesterol.
• Build Swiss Medica into a leading consumer healthcare brand focused on elite over-the-counter health products for chronic ailments.
• Create substantial shareholder value.
• Move to a major stock exchange.
Swiss Medica has come a long way since its launch in mid 2003. The coming year is one of great promise and tremendous opportunity. I urge you to visit our websites www.swissmedica.com, www.O24zone.com and
www.pmsescape.com to learn more about our company and products. I am confident that you will join the thousands of people who have used our products to enhance the quality of their lives.
Thank you for your continued support of Swiss Medica.
Raghu Kilambi, CA
CEO
Swiss Medica, Inc.
