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Biotech / Medical : Paracelsian Inc (PRLN) -- Ignore unavailable to you. Want to Upgrade?

To: John H. Farro who wrote (4255)	8/13/1999 4:43:00 PM
From: Jonathan Schonsheck	Respond to of 4342

Threaders - From today's 10-SBK The Company filed a broad patent application covering its unique approach to quality assurance in July of 1998. The patent application is being prosecuted by Kenyon & Kenyon of New York, one of the nation's most respected law firms specializing in intellectual property. In July 1998, the Company entered into an agreement with R.P. Scherer North America that establishes them as the exclusive marketing and distribution agent for the BioFIT (TM) certification program in the dietary supplement and OTC market segments in North America. The agreement provided for payments to the Company for development of assay systems, for product certifications, for batch to batch testing and for royalties on the sale of BioFIT (TM) products. This agreement has now been modified to limit R.P. Scherer's exclusivity only to the softgel delivery system. The Company will continue to receive royalties on the sale of all BioFIT (TM) certified products by R.P. Scherer and will continue to be paid for batch to batch testing. However, the Company is now free to pursue arrangements with all manufacturers selling other types of delivery forms including tablets, two part hard shells, foods and beverages, as well as with raw material manufacturers. This dramatically increases the Company's potential revenue and, in the case of finished goods manufacturers, allows the Company to receive royalties based on a higher selling price than that at which its royalties from R.P. Scherer would have been based. The Company has initiated testing for several raw material suppliers and finished goods manufactures. Revenues derived from testing are increasing and the Company expects that requests for testing will continue to increase in the coming months as the industry enters its peak selling period from September to March. The Company is also in active discussions with several sellers of finished dietary supplements and sellers of raw materials and expects to complete negotiations shortly that will result in BioFIT (TM) certified products being seen on store shelves later this year.

To: John H. Farro who wrote (4255)	8/13/1999 4:44:00 PM
From: Jonathan Schonsheck	Respond to of 4342

The Company has initiated testing for several raw material suppliers and finished goods manufactures. Revenues derived from testing are increasing and the Company expects that requests for testing will continue to increase in the coming months as the industry enters its peak selling period from September to March. The Company is also in active discussions with several sellers of finished dietary supplements and sellers of raw materials and expects to complete negotiations shortly that will result in BioFIT (TM) certified products being seen on store shelves later this year. The Company is also continuing its efforts to expand the scope of the BioFIT (TM) program to the rest of the world and is in ongoing discussions with R.P. Scherer pursuant to a letter agreement signed in March 1999 to take advantage of this opportunity.

To: John H. Farro who wrote (4255)	8/13/1999 4:45:00 PM
From: Jonathan Schonsheck	Read Replies (1) \| Respond to of 4342

The Company signed a letter of intent with Kubota Corporation on May 25, 1999 calling for the signing of a development agreement to further develop Paracelsian's patented Ah Immunoassay(TM) for use in the monitoring of municipal waste incinerators in Japan. The development agreement was signed on July 20, 1999 and provided for payments to the Company in the amount of $257,000, with $157,000 due by the end of August 1999. The letter of intent further called for 10 the signing of a license agreement with Kubota and this agreement is currently being negotiated, and the Company expects to sign an agreement by the end of August 1999. This agreement will provide both license fees and guaranteed royalties, although the royalties may not begin for up to three years while the Ah Immunoassay(TM) is being validated for its intended use in Japan. In addition to its agreements and discussions with Kubota in Japan, the Company is also actively involved in discussions with private businesses in Belgium, Korea and with Ministry of Health and other government agencies in the Peoples Republic of China regarding development and implementation of the Ah Immunoassay(TM) to monitor food, water and soil, in addition to municipal waste incinerators. The Company expects these discussions to be fruitful and result in further applications for its technology with associated revenues some time in the year 2000.