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Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Bernard Elbaum who wrote (6871)	1/14/2003 8:45:22 AM
From: esxtarus	Respond to of 8117

EXEC NOTES January 13, 2003 From the President and the CEO NEW YEAR...MORE SALES Best wishes for the New Year, and welcome to the first executive note of 2003. Much has been happening at Pyng Medical Corp. (PMC) since our last executive note. This newsletter describes a few of our more significant events and trends. Cutting Costs and Increasing Revenues. Expenses are down. Six months ago Pyng Medical did not have positive cash flow, was not anticipating it till 2003, and had a business plan which called for significantly increased expenditures on new product development. Because of the increasing difficulty of attracting capital investment funds, we conducted a program of "cutting costs to the bone". Some cost decreases are temporary, for example making use of the federally funded Workshare programs until the end of March. This program has been implemented over the last several months and has resulted in a significant decrease in monthly operating expenditures. In the meantime, sales continue to rise - our gross sales revenue for 2003Q3 (Oct-Dec 2002) was approximately $245,000. This is an increase of about 130% over the same quarter of the previous year. Sales for our last fiscal year (FY2002, Oct 2001-Sep 2002) were $579,000, up 60% from the previous fiscal year. It is a clear and present focus of Pyng Medical now to maximize the cost-effectiveness of our marketing and channel-management. Our objective is to acquire significantly increased human and financial resources to maximize effectiveness of Pyng's role (in working with our distributors) in marketing, distribution and sales of the F.A.S.T.1 Strategic partnerships. We have also been working with Pyng Technologies Corp. to explore and pursue strategic partnerships that will benefit Pyng Medical through access to human resources (such as, for example, enhanced marketing strength and expertise) and through access to capital to fund production expansion and an effective new-product development stream. Corporate structures and environment. Our corporate environment is being restructured. During the last six months, PMC executive have been working with Pyng Technologies executive and board to propose and execute many of the steps involved in making the transition from being entrepreneurial companies (the small, high-tech, start-up company model) to being solid, stable businesses. They include the following: Since Pyng Technologies divested itself of Canadian Custom Profiles, Pyng Medical has been the sole business of Pyng Technologies. We therefore began working with Pyng Technologies to expand and unify the boards of the two companies - PMC and PYT. We will be putting to the forthcoming AGM proposals for an expanded Pyng Technologies board, and offering a slate of candidates which includes several completely independent board members, and who will bring to the company solid experience and skills in several critical areas of business. We expect to have those individuals also comprise the board of Pyng Medical Corp. In fact, Mr. Jacobs (Founder and Chair, Pyng Technologies Corp.) has taken the idea of effective simplification of the corporate structure further and is exploring the benefits to the companies and shareholders of actually merging the two companies. To this end he has recently completed the acquisition by Pyng Technologies Corp. of 100% ownership in Pyng Medical. Mr. Jacobs either has, or is about to issue a news release detailing this success. David L. Johnson, Ph.D., President

To: Bernard Elbaum who wrote (6871)	1/14/2003 12:52:40 PM
From: m. jacobs	Read Replies (1) \| Respond to of 8117

Dear Bernard, BPI paid in $450,000 plus dollars for there share of Pyng Medical expenses over a number of years. These shares in Pyng Medical Corp. were not tradable as Pyng Medical Corp. is in fact a private corporation owned by Pyng Technologies Corp, a public company. It was in the best interest of both BPI, who wished to concentrate on their oil and gas reserves, and Pyng Technologies Corp. who is the developer and the manufacturer of the FAST1 System and who wanted to bring back home the outstanding shares of Pyng Medical Corp. We are now 100 percent in control of our product,and company, which will provide many benefits as time rolls on. The negotiated price of 450,000 restricted shares over two years is about 25% of what BPI had already put in. There are restrictive covenants placed on the stock and BPI's interest is best served by letting Pyng Medical Corp. grow under Pyng Technologies Corp. This was a win win situation for Pyng Technologies Corp. and it satisfied BPI as they agreed to sell. Michael