eFotoXpress (EFOT)

[Jimmy Quick]

News 6/21/2007: Shareholder email: UPDATE

Dear Fellow Stock Holders:

I have just returned from what I would call a very successful overseas trip only to say that I will be leaving again in two weeks. I will categorize my achievements as follows:

PHILIIPPINES

We continued to make substantial progress selling DCM ROBOT in the Philippines. Our demo at Makati Medcial Center (MMC) has turned to a sale and we got paid. It had earned creditability with numerous prospective customers calling at MMC to see and even talked to the Head Radiologist. This has further led to two more sales. We now have a total of three in the Philippines and one at demo stage. Philippines is undergoing major changes in their medical sector – from analog to digital. We could not have been here at a better time. Our timing was just perfect. Fortunately because our pricing structure we were able to walk over all our competitors in the Philippines. In the next two weeks we will commence our first pilot test at one of the 88 Government Hospitals. Thirty days after evaluation we will proceed to enter an agreement to interface all 88 hospitals with a PACS system. The project is estimated at $15 million. Our experience in the Philippines has further strengthened our confidence in the product. In a very short time we will commence our first tele-radiology setup at MMC. MMC will become the first hospital to accept images from the US for pre-reading. More and more hospitals in the US are seeking outsourcing reading from overseas because of cost issues. Meanwhile MMC will be proceeding to get accreditation so that they will be allowed to attest readings at all levels. The pipe for tele-radiology has already been established. Our pricing structure actually has shut out competitors like Toshiba, Siemens, GE and Philips in the middle market. No hospital in the Philippines has adopted a full PACS system using the Siemens or GE systems. This may be our only opportunity to become a major player in the Philippines. We will continue to dominate this market here.

HONG KONG

Hong Kong continues to show interest in our product although we face stiff competition from major suppliers like Siemens and GE. The market here is relatively small compared to Philippines. We have an agent in Hong Kong and they have been working very hard to get our name into the market. On my last trip we visited the Children’s Hospital and Queen Mary’s hospital. We have decided to allow one unit to be on demo at one of the recognized hospital. We have decided not to participate in Government Hospitals as the tender process will take too long.

CHINA

China continues to dominate the world as the largest market in everything. Our agent is now proceeding with registration of the product. China is very strict about product registration. This should not take too long. In the mean time demo is allowed pending the registration process. Our agent has identified a hospital in Shanghai where we will begin a demo process. This is being done right now. Within the next 30 days we will commence a FULL SCALE demo. The purpose once again is to earn creditability. The demo should be completed within 30 days whereby we will proceed to enter into an agreement to proceed with a pilot test at 100 sites. This project is estimated at another $15 million. Within six months after its completion we will start implementing a massive project within China. Our DCM ROBOT has been localized in Chinese. If and when completely implemented we project revenue from China to be about $150 million. However it will take over a period of 2 years. Once again our agents and their connections in China have made this possible.

USA

We have not forgotten the world’s most vibrant and inhospitable market in radiology. While the market is much bigger than anywhere in the world except China, we tend to face very stiff competition. However we are not going to remain unattentative. We are in the process of entering an agreement with a consortium who has put up a marketing plan to sell our product in the USA. Within the next two weeks we will hire a National Sales Manager to take care of the program and to ensure that we also can become a major player in the US. I don’t see why we are unable to do well in the US when we have succeeded elsewhere.

If sales in the US are not forthcoming then we need to go elsewhere to generate revenue. Many times great products become household name overseas before it really gets back into the US.

Our total sales so far reached $1.25 million. We project another $8 million for the next quarter.

Thanks for reading.

With Warmest Regards

Edward Tan, CEO