SAN JOSE, Calif., Oct. 27 HPSI(OTC Bulletin Board: EROX) releases letter to its shareholdersDear Shareholders, In light of events that have shaken the investment community around the world over the past several weeks, I want to take this opportunity to update you as to what is happening in your Company at the present time. Excluding technology advancements, an update of which will be provided very shortly in another release, the objectives and strategies for the Company for this year and 2009 are as follows: -- The Company is continuing to work closely with our current licensees as they undertake programs to introduce consumer products containing our patented compounds. During this year we have continued to be closely involved with the J&J Personal Products Group as they continue product development efforts under our License Agreement. This project is ongoing and viable. In mid 2007, we entered into an agreement with Schwarzkopf and Henkel, for the inclusion of our patented technology in several of their got2b brand products sold in the United States. During this year, the Agreement has been expanded geographically to include Henkel's European businesses and an additional product line has been included in the Agreement. We continue, this year, to work with other U.S. and international companies including Avon Products, who continue to utilize our pheromone compounds. In addition, we continue to look internationally, and continue to enter into agreements with companies doing business in Mexico and Japan. In addition, we are in discussions with several other companies in the United States and overseas, in efforts to open new markets for our current technology with local companies, with their own infrastructures here in this country and in foreign markets. Not only has our Company benefited financially from our agreements with these world-class companies, our association with them has confirmed the viability of our technology, an imperative for a small technology-based business to generate interest of others in the longer term. -- While our historical business model has been validated by these relationships, we are still dependent upon the internal timetable of these licensees for the generation of revenues for our Company. However, there are other viable and fast growing channels in which consumer products are sold, including electronic media, and direct-to-consumer companies, that may provide a more consistent flow of revenues to our Company. During this year, your management has been working to introduce our technology to several companies who are in leaders in these fields. We hope to be able to provide more specifics about these efforts shortly. -- Technology - our heritage, our future; another focus of our Company. During 2008, we have spent significant amounts of time, but not a lot of money, in the development of new compounds. You will be hearing more about the positive results of these efforts in the next two weeks. -- Merger and Acquisition Opportunities. We feel strongly that our current technology and new research and development initiatives can continue to attract world-class partners. We have also undertaken a program to seek mergers and/or other types of partnerships that can enhance shareholder value - our ultimate goal. Unlike many companies whose share price has dropped radically this year, who have no historic operations, an un-tested business plan and tens of millions of shares outstanding, our Company has existing relationships and agreements with worldwide leaders in the consumer products industry, is in discussions with other international companies for the use of our technology, looking to expand our relationships to provide a more consistent stream of revenues, and has a pipeline of additional compounds that can offer patented differentiation. And, importantly, our cash assets exceed our current market valuation, and we have no interest-bearing debt. Thank you for interest and support. Please do not hesitate to contact me directly if you have any questions. Sincerely, William P. Horgan Chairman and CEO 408-938-3030
SOURCE Human Pheromone Sciences, Inc.