LETTER TO SHAREHOLDERS January 13, 1999
Dear Shareholder:
As I am sure you know, CTI has started the New Year with a bang. Our goal of "full reporting" status was finally reached when the SEC made effective our various filings effective January 11, 1999. We expect this to mean that our securities will be looked at and traded on a far broader range. Many brokerage firms will not deal with companies that are not "fully reporting." Moreover, this achievement gives our shareholders more confidence in that we will now be making public disclosure reports (10-Q's) each quarter. This registration effort has taken 2 years and a great amount of time and money, but will soon prove worthwhile.
With the approval of CTI's registration statement comes the lifting of the so-called "quiet period" which is mandated by the SEC. CTI can now lay out our plans for the future and can also keep you informed on important upcoming events. I will make every effort to improve communications.
As was announced in late December, CTI has made a significant move by reorganizing of our 81% owned subsidiary, Thermal Medical Imaging, Inc. (TMI). I have taken over as President and COO of TMI while retaining the title of President of CTI. This may seem confusing, but it is the first step in a process which will eventually consolidate CTI and TMI. TMI's mission is focused now on the completion of the breast cancer clinical trials. I am concentrating on these trials with considerable intensity and hope we can wrap them up completely in six months. Meanwhile, as was announced a few days ago, TMI will be opening two more trial sites in the near future which will give us a total of six sites. These added sites will increase total data collection and get us to the finish.
Another important point to understand in the drive to get FDA approval of our breast cancer detection system is that we will shortly begin the "modular" submission of data. This is a new procedure in which we plan to submit to FDA the various required data in parts (7 major sections), e.g., one part describing the hardware, another part regarding software, another part describing manufacturing and so on. This modular approach should shorten up significantly the FDA approval cycle.
Another point you should be aware of has to do with the results being obtained from the trials. The trials are performed very strictly according to an FDA approved protocol which includes a blind study-i.e., TMI does not see the results until the end. Therefore, we periodically take out data which is not included in the testing in order to insure effectiveness. The statistics thus far exceed our original expectations. I will address the testing in more detail in a later letter.
As to CTI's strategic plans, we expect to move back into infrared imagery for general medical purposes in the near future. Almost 2 years ago CTI made the decision to devote nearly all available resources to completing the breast cancer project. Since that time about $6 million has been expended. Now, having achieved SEC approval of the CTI registration statements a number of potential investors have contacted us and management is sorting through various offers. Therefore, CTI is dusting off plans to go into the workman's compensation (screening and therapy) market as soon as possible. Look for announcements in this area as deployments are scheduled.
Speaking for the Board of Directors and the management of CTI, we thank the loyal shareholders who have stuck with the company through a difficult period. Everyone in CTI/TMI is excited about the future and you can expect to see hard work and real progress.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to technical risks associated with new technology development, government regulatory approvals or continued working capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings. Copies of these filings may be obtained by contacting the Company or the SEC.
Sincerely,
David A. Packer
President of CTI
|
