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Biotech / Medical : Stayhealthy.com: Monitoring your wellness on the Web -- Ignore unavailable to you. Want to Upgrade?

To: KMT who wrote (1050)	12/14/2000 4:41:59 PM
From: Eric Fader	Read Replies (2) \| Respond to of 3785

All shareholders should receive this letter in the mail shortly: December 7, 2000 Dear Stayhealthy Shareholders, Stayhealthy enters the new millennium charged with optimism and energy, prepared to move into our next stage of growth and a fuller realization of our business plan. To better understand where we're presently positioned, let's look at the Company highlights during the past year: · The Company changed its name to Stayhealthy, Inc. The Company is not a "dot.com" and the current name better reflects our functions. · In April, we held our first shareholder meeting, at which time we announced our intention to acquire the Center for Health Information (CHI) from PharMerica, a wholly owned subsidiary of Bergen Brunswig Corporation (NYSE: BBC). We also demonstrated our Body Composition Device and the Calorie Tracker for shareholders present. · We successfully completed Beta testing of the CT1 Calorie Tracker and have begun shipping the research version -- the RT3 -- to researchers around the world. · We completed the acquisition of the Center for Health Information and are seeing immediate results, with orders for our products and services coming from major pharmaceutical companies. · Changes in financing opportunities, coupled with the harsh decline in capital markets, caused management to study many different scenarios and potential opportunities. One was announced -- the agreement to purchase MyLife.com,Inc. from idealab!. But after meeting with management of both MyLife.com, Inc. and idealab! to commence transition and integration, it became clear that idealab! was changing its business model, and that the benefits to all were less clear under current market conditions. Therefore, both parties decided that this transaction no longer represented a good value proposition, and as such the agreement will not go through. Stayhealthy will not become an "idealab! Company." · Difficult choices must sometimes be made to move a company forward. With the acquisition of CHI, we were tasked with the integration of the two companies. Where there were duplicative assets, both companies looked at structure and skill sets and pared staff, keeping only key personnel, who through their specialized skills will make our company grow. This places Stayhealthy in a lean and powerful position, better able to move forward with a singular focus: Make product and sell it profitably. We will enter year 2001 as a revenue generating company - from our products, our services and from the Center for Health Information. Current order flow indicates good public acceptance of the BC1, CT1 and RT3 units. Stayhealthy has just received its first purchase order from partner Bergen Brunswig Corporation, and we fully expect to deliver Body Composition (BC1) units to them over the first half of 2001. Assuming sell-through, this order totals over $2,000,000 in revenue. Based on the scarcity of medical grade devices such as ours, we also expect university and pharmaceutical researchers to continue buying the RT3 for their studies in obesity and related conditions. Stayhealthy, Inc. is ideally positioned to assist with the many problems associated with obesity in the United States, now reaching epidemic proportions. A decade ago, 15% of the people in 10 states were 30 pounds or more overweight; presently that ugly statistic applies to 49 states. With obesity associated with many other medical problems, such as Type 2 diabetes, your Company, along with the Center for Health Information, is creating robust programs that integrate our devices to address these problems. We have slated the introduction of web-enabled devices for blood pressure, lung capacity and function and electronic EKG. We are also in advanced discussions with several large self-insured employers regarding purchasing our devices for weight and stress management. (Studies show that employers can achieve significant health cost savings by implementing monitoring programs such as those we are introducing). We expect to have announcements in this area shortly, perhaps by the time you receive this letter. Stayhealthy is leaving the "transition era" and enters 2001 in "implementation mode." Our ideal of providing low cost, high quality medical devices for the consumer and healthcare professional has become reality. The concept of cutting costs for the purchaser while at the same time empowering users and their supporting health/fitness professionals has also become a reality. Naturally, success will depend upon the Company's ability to fund operations and the continued acceptance of our products in difficult market conditions. Yet we feel we are ready to realize the Company's potential, and are excited by the prospects. We wish you all a happy holiday season and a very successful new year. We truly value the trust you have placed in us, and we will continue to work tirelessly to achieve the best possible outcome as we move into the New Year. Stayhealthy Board of Directors