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Technology Stocks : CEXI (CDEX Inc.)

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From: Felix16/16/2006 8:01:31 AM
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CDEX 10-Q Illicit Drug Detector: x-ref govt domain content via: 2006 "Missouri Highway Patrol" methamphetamine site:.gov "Missouri Highway Patrol" detect methamphetamine site:.gov Missouri "Combat Methamphetamine Act" site:.gov etc

sec.gov

Illicit Drug Detector
- ---------------------

Over the past several quarters, the company has been actively working to develop
a specification and pilot test program with a law enforcement agency for its
"Meth Gun". In 2Q06, CDEX hired a new Director of Business Development for
Homeland Security to provide leadership to its security business and build upon
the excellent work already accomplished prior to his hiring. CDEX has
successfully demonstrated its Meth Gun to the Missouri State Highway Patrol
(MSHP) that resulted in the MSHP agreeing to enter into a pilot test program
with CDEX. The company chose Missouri because it has led the nation with the
highest number of methamphetamine incidents in 2004 and 2005. Senator Jim Talent
(R-MO) and Diane Feinstein (D-CA) co-sponsored a U.S. Senate Bill entitled,
"Combat Methamphetamine Act" that was passed into law in March 2006, to
establish public policy to combat methamphetamine nationwide. The bill
authorizes appropriations of $99 million in each of the next 5 years.

CDEX anticipates beginning the pilot test program in September 2006 and
completing the test in late November or early December of 2006. CDEX expects to
have to refine the design of the Meth Gun based upon inputs from MSHP, and
expects the Meth Gun to evolve into a "Illicit Drug Detector" that is capable of
detecting more than just methamphetamine. Assuming a successful pilot test
program with MSHP, CDEX expects to begin production start-up in early Q1 of 2007
with first production deliveries anticipated in Q2 of 2007.

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The Meth Gun is transitioning from a marketing demonstrator prototype, to a
beta-test product with a bona-fide law enforcement agency in the Missouri State
Highway Patrol, acting as a committed beta-test partner for CDEX. CDEX
management anticipates that the "Illicit Drug Detector" could become a
significant product portfolio for the company over the next five (5) years. In
order for the company to take this product through a successful beta-test
program, revise its design, start up a production line, and introduce it into
the market by Q2 2007, CDEX must receive additional investment to implement its
business plan, successfully complete the pilot test program with MSHP, establish
a national and international reseller and distribution network, and enter into
production. This will require investment to fund the production start up,
marketing and sales initiatives, and provide working capital in order to
purchase production materials and parts inventories. If the company is unable to
obtain the required funding that it needs through debt or equity financing, in
the near term, the potential of the "Illicit Drug Detector" product portfolio
cannot be realized.

talent.senate.gov








Fighting Methamphetamine

Methamphetamine is perhaps the most deadly, fiercely addictive and rapidly spreading drug the United States has known. It's the worst drug threat I've encountered in my nearly 20 years in public life.



During the past decade, while law enforcement officers continue to bust record numbers of clandestine labs, meth use in communities has increased by as much as 300 percent. Meth is cheap, potent and available everywhere.



Sen. Dianne Feinstein, a Democrat from California and I sponsored the Combat Meth Act. Our bill is the toughest, most comprehensive anti-meth legislation ever introduced in the Congress, much less passed. The Combat Meth Act restricts the sale of products necessary to cook methamphetamine and provides new funding and tools for law enforcement to fight meth in our neighborhoods.



I am very pleased the Senate approved the Combat Meth Act and the President signed it into law on March 9, 2006.

For additional information, see the following:

President Bush Signs Sen. Talent's Combat Meth Act into Law
Sen. Talent Attends Bill Signing Ceremony
Bipartisan Senate Cosponsors

Groups supporting the Talent-Feinstein Combat Meth Act:

Missouri Sheriffs' Association
Association of State Criminal Investigative Agencies
Fertilizer Industry Methamphetamine Task Force
Fraternal Order of Police
Jasper County Commission
Jefferson County Presiding Commissioner
Kids Hope United
National Alliance of State Drug Enforcement Agencies
National Association of Counties
National Association of Police Organizations, Inc.
National District Attorneys Association
National Narcotic Officers' Associations Coalition

Senator Talent's Awards and Recognition for the Combat Meth Act

Greene County Sheriff's Office - Certificate of Appreciation
Jasper County Drug Task Force - Plaque of Appreciation
Jefferson County Commission - Certificate of Appreciation
Jefferson County Sheriff's Department - Medal of Honor
Mineral Area College Law Enforcement Academy - Certificate of Appreciation
Missouri Highway Patrol - Certificate of Appreciation
Missouri Narcotic Officers Association - Certificate of Appreciation
Platte County Sheriff's Office - Certificate of Appreciation



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