To: Montana Wildhack who wrote (8230 ) 12/13/2001 5:04:53 PM From: Joe Krupa Read Replies (3) | Respond to of 14101 THE PLANT HAS BEEN INSPECTED !!dimethaid.com In our last President's Message, I commented on a number of milestones we had achieved, and on our expectations for the second half of fiscal 2002. Included in these comments was notification from the US Food and Drug Administration (FDA) of a scheduled inspection of our manufacturing facility in Varennes, Québec. The purpose of this inspection was to determine the acceptability of this facility to produce PENNSAID® for the US Market. In keeping with our commitment to update our shareholders on corporate developments, I am pleased to advise that this FDA inspection has now been completed. Congratulations are due to Ruth Huttman, our Director of Operations, the entire team at the Varennes plant, as well as our Regulatory Affairs Department, for their tremendous effort in enabling us to reach this milestone. This pre-approval inspection is another step towards regulatory approval, and allows us to continue moving forward in our efforts to bring PENNSAID® to market. As we have always noted, in accordance with policy, we are not in a position to comment on our status with any regulatory agency until the decision-making processes have been completed. In addition, as announced on December 5, 2001, we have extended to May, 2002, our private placement agreement with Acqua Wellington North American Equities Fund. To date, we have received net proceeds of approximately $9.7 million from Acqua, to support the scale up of our manufacturing facility in order to supply PENNSAID® to a number of markets and for the preparation of its North American and European launch. Prior to the upcoming holiday season, I will provide another brief update on the status of corporate developments in other areas. I now invite you to browse the rest of our website. Please note that there is a place where you can sign up for e-mail notification of future announcements and website updates. Sincerely, Rebecca E. Keeler President and C.E.O. Dimethaid Research Inc. December 2001 This message may contain forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors outside management's control that could cause actual results to differ materially from those expressed in the forward-looking statements. A discussion of such risk factors is included in the Company's AIF filed with the OSC and includes, without limitation, risks regarding product development, clinical trials, dependence on third parties for development and licensing arrangements, and risks involving regulatory approval of products, and licenses and patents. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.