Ray C R: Here is some info right FROM CTI!
July 23, 1998
Dear Shareholder;
The company has been inundated with calls, email and personal visits the last couple of weeks seeking information about the company. The level of interest generated by the recent rise in stock price has been so high that our voicemail system has become saturated at times. It is impossible to respond individually and remain focused on company operations. Unfortunately, at this time we are still somewhat limited by Section 5 of the Securities Act of 1933 because we are still in a securities registration period and cannot make statements which would involve forecasts, projections or prediction. It would not be appropriate at this time to project trial results or predict when we would expect FDA approval. I think that it is important, however, to respond to some shareholder concerns.
The focus of company operations remains completion of the ongoing breast cancer trials. Because this is a blind study, the actual results are not available to CTI until the trial is completed. By the design of the trial, therefore, no interim results will be available. But you should remember that we conducted extensive pre-trial studies and remain confident of our technology. Our focus is to complete data collection just as soon as possible. Preparations are underway now for the processing of the results and their submittal to the FDA.
There have been some questions about how our technology will be applied. Traditionally, promising new technologies are introduced in such a way as to complement existing capabilities. Our trials are designed to complement this process. The current test being conducted is to test the efficacy of CTI's technology used in conjunction with clinical examination and/or mammography to increase the ability of physicians to differentiate benign and malignant tissue. The goal is to reduce the number of benign biopsies performed. In this initial application, CTI's technology would not be used as a pre-screening device. Rather, those patients that have a suspicious mammogram would be referred for a CTI examination. The results of the CTI examination would be combined with the mammogram and other clinical and patient risk factor data to determine if a biopsy should be performed. Under this usage pattern, CTI will not replace mammography. Any facility that currently does mammograms, however, becomes a potential user of CTI's equipment. There are currently over 12,000 certified mammography facilities in the US alone. As more experience is gained and the technology becomes established, it's usage would then be expanded. Usage as a standalone-prescreening device would require additional clinical study beyond our current trial.
There is great interest in the details of our technology, strategic plans and status of ongoing activities. There seems to be an insatiable appetite for information. It is difficult to determine how much information an investor legitimately needs to make sound judgements yet not compromise the company and shareholder investment. We are frequently the subject of what can be best described as "fishing" expeditions seeking the details of our developments. CTI has developed a number of key breakthroughs from our ten years of research and our clinical experience. These breakthroughs are at the heart of how we configure and apply our technology. A description of our technology and strategic plans would essentially be a roadmap for our competitors. That, obviously, would not be in the interest of the company or our shareholders.
We have taken extensive measures to protect our developments. This includes patents, copyrights and other protections. We are presently preparing other patent applications. Again, a description of what we have chosen to patent, or otherwise protect, could also give a competitor insight into those items that we feel are critical. Although much of this information will eventually become public knowledge, it is not in our interest to accelerate that process at this time.
Our traditional major capital investors have supported company operations. These funds are sufficient to meet current operational needs and continue to reduce financial obligations. The company's outstanding financial obligations are now lower than at any time in recent past.
I appreciate your interest in and support of CTI. I often receive suggestions for things we should be doing or could have done. These are always welcome and have been the source of many good ideas. I am not always able to implement these suggestions because of priorities, focus, and our stage of development or resource limitations. Nevertheless, keep them coming (comments@cti-net.com).
I am often asked to comment on rumors. The quickest way to monitor company activities for those who have Internet access is to visit our web site at www.cti-net.com. The latest company press releases and special bulletins will be posted regularly on the CTI News page. If it is not on our web site, treat it as a rumor and consider its validity accordingly. Major company developments will always be posted on our web site. Items of general public interest will also be issued as a formal press release to the wire services.
Again, we are limited in what we can say right now because we are in a securities registration period. I trust that you understand why, even when those restrictions are lifted, we will continue to limit information in a few key areas.
I expect the next few months will prove to be very exciting for CTI
Sincerely,
David Packer, President
Computerized Thermal Imaging
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