Dear Shareholder,
 
 The last year has been spent in trying to straighten out the numerous
 tangles faced by the Company, consequent to its ceasing most of its
 operations.
 
 The Company''s laboratory at Bangalore is focusing on just a few
 projects, which were funded by the Ministry of Science and Technology.
 It is hoped that some of the technologies will be revived and
 developmental issues completed so that these technologies can be
 out-licensed or sold.
 
 The Company sees the year ahead as the most critical to its survival.
 This is therefore the time for all of us to rally around our Company
 and give it the support that is so essential to its revival.
 
 K.O.Isaac Chairman