Kraig Biocraft Laboratories Inc (KBLB)

[TRUISM]

Thanks For Looking Out For Us Shareholders Kim; Despite The 2008 Credit Crunch And Meltdown Of The US And European Financial Sectors


On the corporate side, one of the most difficult challenges and hurdles faced by the Company was navigating the credit crunch and meltdown of the US and European financial sectors in 2008 and its aftermath. Many advanced biotechnology companies collapsed and permanently closed their doors as their sources of finance dried up. I was personally saddened to see the biotechnology industry decimated by the financial meltdown that it had no part in creating.

I was determined that Kraig would not suffer the fate of others in our industry just at the time when we believed that we were on the verge of remarkable progress. We took immediate action and implemented a strategy which combined streamlining our already lean operations, a ten for one forward stock split and an S1 Securities registration. It has taken more than a year for that plan to play out, but in late June we were able to announce that our S1 had been declared effective.

What enabled Kraig to survive the financial meltdown when larger biotechnology companies all around us were collapsing was a combination of our innovative business strategy and our perseverance based on the knowledge of the importance and viability of our work. As a vital and essential part of our corporate community we want to thank you our shareholders for your vision and fortitude. We have now ridden together through some of the toughest times in our nation's financial history.

Even before our S1 registration was declared effective, we had the confidence in our business model to negotiate a new collaborative research and development agreement with the University of Notre Dame. This agreement replaces our prior agreement with the university and places Kraig on sound footing for further scientific developments in 2010 and 2011. A word of acknowledgement for the work and vision of the university researchers and administrators is in order here.

Of course, while all this has been going on, and while the stock markets have fallen and partially risen, scientists, researchers and genetic engineers have continued to work for the creation and material development of the Company's vision for high performance polymers including most notably recombinant spider silk.

Thank you again for sticking with us when promising technology companies all around us were collapsing.

Kim Thompson, CEO


Click For Entire August 24, 2010 KBLB Letter To Shareholders



KBLB....YOUR MAIN PROVIDER OF SPIDER SILK FIBER




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