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July 8, 2010 - In commemoration of PKC’s Frontiers in Drug Delivery book

Dear Shareholders:

CEO showing Frontiers in Drug Delivery book


One of the fundamental pillars of our commercial success as a growing enterprise and innovative medical device company is the strength of our intellectual property (IP). PKC’s IP portfolio provides security and protection for the future commercial products and technological innovation of our company. Our strategy is to compete by creating and expanding new markets rather than competing within existing shrinking markets. We are here to lead and build new markets that do not yet exist. In the process, we intend to create market opportunity and increase consumer awareness for the future of our smart drug delivery devices and for industry as whole. We do all of this and more through the introduction of our smart drug delivery devices. The cornerstone of our strategy is formed around possessing strong and ironclad IP that are fully protected. Our IP will allow PKC the necessary lead time to enter the medical device market and provide an advantage to capture significant market share.


In Frontiers in Drug Delivery the book, that I trust by now you have received your copy, containing PKC’s last twenty patents, is a testimony to your confidence in PKC management. I am pleased to inform you that our technical team lead by Josh Shachar, an individual that has the unique and gifted ability to resolve most complex technical problems by creating the solution and being able to write it in a form of world class patent, has been blevo reach our technical milestones and to delivered on time. What link Dr. Thomas Chen who is a visionary surgeon with a greatest passion and love for his passion and one of main trust of our company who propels our cause forward and the rest of our team who are among the best and the capability to deliver world-class IP intended to improve the lives of patients, and in doing so to benefit you, our shareholders. Even with the massive proliferation of new technologies and treatment modalities, too many of our fellow humans suffer from chronic disease. We think of the PKC enterprise as a powerful vehicle that carries hope and healing to those who suffer from many types of chronic illness. We believe this vehicle, as represented by our IP portfolio, is creating a legacy for us to future generation and that will reward our shareholders as it serves the world.


We are not discouraged by the current economic environment. Fifty percent of all companies on the current Fortune 500 list were founded during periods of recession, including HP, Intel, Microsoft, Google and Apple. We too intend to make our mark starting in this difficult period.


Today’s overcrowded, competitive landscape creates a difficult business environment that forces companies to continually fight rivals over shrinking profit pools, we intend to lead the future by not battling our contenders, but by creating uncontested new markets that will be ripe for growth through value innovation for all. The course that we are charting has an abundance of examples- an unknown start up company decades ago, by the name of Intel saw the opportunity to use microprocessors to revolutionize old and inefficient computing devices. Likewise, an unknown start up company called Microsoft assessed the opportunity to create an operating system that helped to proliferate personal computers to hundreds of millions of Americans. The American engine of innovation and infrastructure is here to deliver, and we are part of that engine.


Today, this CEO, our Board, management, and technical team are at same juncture that Intel and Microsoft's board members and shareholders were in during their early stages. We too, will rise to the occasion and will not disappoint our shareholders or the patients who desperately need intelligent and effective cure regimens. Today, PKC has identified clear product opportunities addressing markets in the pharmaceutical industry totalling $780 billion worldwide (USA share $300 billion). The majority of our products are designed to increase the efficacy of pharmaceuticals, improve their safety, and reduce their side effects. PKC’s smart local drug delivery devices will be among the first products to address this very significant market opportunity.


As CEO of PKC, and with the support, wisdom and the guidance of our Board, I will not rest until the day that PKC can be revered and traced to its origins as an unknown start-up company. We expect to produce a paradigm shift in the pharmaceutical industry and change the way physicians interact with their patients, with remote access to adjust the drug regimen delivered by implanted devices and real-time feedback from the site at which drugs are delivered.


Our first product, the Magnetic Breather Pump, is ready for animal studies in the second half of this year. We expect successful clinical data to generate significant ROI to our shareholders.



Frank Adell

Chief Executive Officer

July 8, 2010

  main: 310.641.2700 fax: 310.641.2702 6053 W Century Blvd, Suite 1000, Los Angeles, CA 90045-6400 © Pharmaco Kinesis Corp.