Solos Endoscopy, Inc. (SNDY)

October 10, 2012

Dear Shareholders,

I am pleased to be able to communicate with our shareholders directly and to give you an update   on our progress to date.

Solos Endoscopy is celebrating its 25th Year of providing quality innovative healthcare   instruments to hospitals across the country. For more than 25 Years, from the classroom to the   hospital, surgeons have trusted Solos Endoscopy to develop and market new technology and   medical devices for the screening, diagnosis, treatment and management of disease and medical   conditions.

Solos Endoscopy was a pioneer in rigid scope endoscopy and its endoscopic equipment was   originally used as a teaching tool at university hospitals and leading medical schools located in   the greater Boston area. The Company's early work in laparoscopic endoscopy allowed Solos   to become the market leader achieving sales of over $40 million during its 25 year history.Backed by technical support, Solos' knowledgeable sales team can help make the right buying   decisions for the hospital, surgery center, or physician office as well as to support the many   systems in the field across the United States. 

Today, Solos Endoscopy is positioned for tremendous growth in the multi-billion dollar   endoscopic market. Solos Endoscopy currently has its endoscopic instruments in over 67   hospitals in the United States with plans to market its endoscopic instrument internationally upon   receiving its CE Mark.

Solos Endoscopy retained TÜV SÜD America, Inc. to complete its ISO 13485 Certification and   Audit. The Company previously engaged Expert Resource to prepare the Company for the final   audit, which will be conducted by TÜV SÜD America. Expert Resource will attend the final   audit, and help interpret any findings. According to Expert Resource, their consultants   maintain a 100% success rate of passing the final audit on the first attempt.   Solos Endoscopy has posted its update ISO 13485 CE Mark Schedule on its website,http://solosendoscopy.com/pdf/SNDY-ISO-13485-CE-Mark-Project-Schedule-October-2012.pdf. To   date, our team has been working diligently with Expert Resources and has completed, or is   in the process of completing several of the requirements necessary to complete the Audit.   Solos Endoscopy, Inc. has been at the forefront of breakthrough medical devices and   technologies for the treatment and management of diseases for over 25 years. The Company   markets over 200 items to the endoscopic market and is continuing the development of products   that will enhance the ability of medical professionals to perform minimally invasive surgical   techniques.

The company has, for the second time in three years, successfully completed the Food and Drug   Administration (FDA) Level II Baseline Inspection in which it received a NAI (No Action   Indicated) for the inspection. It is standard for the FDA to perform unannounced inspections   periodically for medical device manufacturers, and the successful inspection by the FDA   validates the Company's quality system and its strict adherence to that system.Solos has several exciting new advances in product development that will change the way   minimally invasive procedures are utilized in the medical field in order to treat and prevent   disease. These products include Solos Endoscopy's new Bariatric Instruments and the new   endoscopic instrument line, SteriTAP(TM). Solos Endoscopy's instruments allow physicians to   examine organs and tissues within the body without the need for intrusive surgery. The Company   continues to market its next generation breast endoscopy system, the MammoView® system, for   early breast cancer detection. 

Throughout the year, Solos has focused its R & D efforts into the design and development of   new modifications to its endoscopic instrument lines to accommodate the continual advances in   Laparoscopic surgical procedures. The significant advances over the past several years have led   to a number of advantages to the patient with laparoscopic surgery versus an open procedure   (laparotomy). These advantages include reduced pain due to smaller incisions and hemorrhaging,   and shorter recovery time.   The demand for endoscope services is increasing due to an increase in the aging and chronically   ill population worldwide. Advancements in endoscopic technologies and inclusion of various   types of lighting sources, video cameras, real-time conversion of data into three-dimensional   images are also driving this market. Endoscopy procedures have become highly effective in the   diagnosis, treatment, and management of cancer patients. Many now consider endoscopy to have   become the gold standard for cancer diagnosis and treatment, as well as for many other medical   conditions.

The MammoView® instrument line, designed exclusively for breast endoscopy, has become   crucial to early breast cancer screening as a method to significantly reduce breast cancer death   rates. The Solos MammoView® Breast Endoscopy System is designed to distinguish and inspect   suspicious pre-cancerous lesions undetectable by other methods as well as complement existing   diagnosis and treatment options with direct endoscopic observation. The Solos MammoView®system is currently in use at various teaching hospitals across the United States. 

Solos Endoscopy, Inc. posted its financial results for the Period Ended June 30, 2012. During   that period Solos posted Total Assets of $2,426,883 compared to Total Liabilities of just   $214,827 for the same period. The financials are posted on OTC Markets.com   http://www.otcmarkets.com/stock/SNDY/filings. 

The Company reduced the cost of a consulting contract in 2012 reducing its monthly costs from   $40,000 to $20,000 per month. In addition, payments on the contract were forgiven for the first   quarter of 2012. During the six months ended June 30, 2012, the Company received $395,800 in   proceeds from the sale of its preferred stock and additional $76,500 in advances against the   future sale of its preferred stock in the third quarter. The cash used for operations during the first six months of 2012 was $227,756, and was primarily used to reduce Accounts Payable. Solos   Endoscopy was able to close out the Quarter with cash assets of $146,882 which was a   substantial improvement from just $6,598 the prior year. 

The Company substantially reduced its payables and other debt in the first six months of 2012 by approximately $640,000. Solos expects, due to the restructuring and pay off of its debt, that it is   in a better position to expand its marketing efforts and generate positive cash flow from its   operations. 

Going forward, Solos management plans to use its resources to increase sales either organicallyor through mergers and acquisitions with the ultimate goal of achieving long term sustained   profitability for its shareholders. 

In closing, I want to thank each of you for your commitment to and support of Solos Endoscopy.  We will continue to keep our shareholders updated through regular posting on   www.otcmarkets.com and Company press releases. To learn more information about the   Company and its products visit www.solosendoscopy.com.

Regards,
Robert Segersten
President and CEO 

 Solos Endoscopy, Inc.