January, 30, 2001

In general, the project is progressing smoothly.  Our top priority is to enter into an agreement with the best possible company to distribute Oralbot.  Distribution is the most important element of any business.  We want to be linked to a distributor that will provide the greatest sales volume and, consequently, provide excellent returns to our royalty participants.  For this reason, we want to take sufficient time to make the right decision.  We are talking to a number of candidate companies.  Selection of the right distributor is vital.  We want a company with an excellent reputation, healthy financial position and strong name recognition within the industry.  We recently attended the Denver Mid-winter Dental Convention where we made contact with several leading companies that are now Oralbot distributor prospects.  We are fortunate to be in a position of making our selection from a large list of well-qualified distributors.  Our goal is to finalize a world-exclusive distribution agreement by March 31, 2001.