Magic

[EdF]

PLTT nibbled .04--filed an 8K on 11/13, reemerging :

November 8, 2006


Dear Stockholder:

If your first reaction to a stockholder’s letter from Pilot Therapeutics Holdings, Inc. ( “Pilot”) is surprise, that is understandable. For the past three years, Pilot has largely been in hibernation. As you will recall Pilot is a medical foods company, based first in Winston-Salem, NC and later in Charleston, SC, which developed an over-the-counter treatment for asthma.


Pilot’s last formal communication with you was in the summer of 2003, when the company had conducted several clinical trials and was launching a promising market test for an over-the-counter asthma product, known as Airozin. But when funding promises failed, the company was forced to close its doors. Since then several attempts have been made to get this clinically-tested product into the marketplace in the dietary supplement and medical foods areas by partnering with other companies. These efforts were largely unsuccessful until interest in Pilot’s intellectual property was ignited by the publication of the two books, Inflammation Nation (Simon and Schuster, 2005) and Win the War Within (Rodale, 2006) by Pilot founder Floyd “Ski” Chilton. The book examined the impact that our modern diet and in particular fatty acids are having on inflammatory diseases as diverse as allergy, arthritis, asthma and eczema.


The purpose of this letter is to inform you that Pilot and Wake Forest University Health Sciences have separately licensed their respective rights of Airozin to Efficas, Inc. of Boulder, Colorado, which is marketing three products based on this technology -- Efficas: Asthma Care; Efficas: Allergy Care; and Efficas: Eczema Care. To view the products link to www.Efficas.com. A press release announcing this transaction from Wake Forest University Health Sciences is attached.


This transaction has provided Pilot the ability to reconstitute its board of directors and begin the process of sorting out the legal, accounting and regulatory issues that naturally arise for a company that goes through essentially three years of dormancy. Pilot is also examining its remaining intellectual property related to other medical food and prescription products--some of which is owned jointly with Wake Forest Medical University Health Sciences --to determine which products should be developed actively by Pilot and which products should be licensed to potential partners.


Pilot has reestablished an office in Winston-Salem at 635 West Fourth Street, Suite 200, 27101. The board is in the process of determining the best structure for the company going forward. Current Board members are Mike Sandusky, President, Business Carolina, Inc; John Ciannamea, Academy Funds; Floyd “Ski” Chilton, founder, professor of physiology and pharmacology at Wake Forest University School of Medicine; and Scott Derks, President of Pilot.




At this time, we are unable to predict the future, but remain hopeful about the potential of products and the quality of the intellectual property owned by Pilot. Please feel free to contact me at the above address or [e-mail] to express your thoughts.


Please note that any statements made in this letter related to future prospects for Pilot are forward looking and are made pursuant to the safe harbor established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s beliefs and assumptions and involve risks and uncertainties which may cause results to differ materially from the results predicted. These forward-looking statements are identified by terms and phrases such as “hopeful”, “anticipate”, “believe”, “intend”, “expect”, “continue”, “should”, “could”, “may”, “plan”, “project”, “predict”, “will”, and similar expressions. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to, unanticipated changes in costs; political, legal, and economic conditions and developments; changing market conditions and other factors; availability of, or cost of, capital; delays and other obstacles associated with investments in joint ventures; and costs and effects of legal and administrative proceedings, settlements, investigations, and claims. Please refer to the company′s SEC filings for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to update the information contained herein.


Thank you for your patience.


Sincerely,



Pilot Therapeutics Holdings, Inc.


Ss/ Scott Derks