CYduct Diagnostics Inc (CYDX)

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2007 President's Letter:

Solos Endoscopy President's Letter to the Shareholders
Posted January 22, 2008

Solos Endoscopy, Inc. (PINKSHEETS: SLSY) is pleased to announce that company president, Bob Segersten, has given a brief overview of the past year and discusses the future of the company in a letter to shareholders, detailed below:

I want to take this opportunity to thank everyone for their continuing interest in Solos Endoscopy and to provide a brief overview of 2007, along with our plans for 2008.

The past year, 2007, was a transitional year for the company. It was a year where we not only developed instruments for established medical procedures, but also developed instruments for several new medical procedures that required physician training, particularly mammary ductoscopy. We also expanded our general surgery line to include a unique set of vascular clamps and vascular clamp appliers.

Our sales increased by approximately 20% over our sales in 2006. However, our cost of sales was impacted by factors beyond our control and these were: increased cost of employee medical insurance; the steady decline of the dollar against foreign currencies, particularly the Euro; increasing cost of product liability insurance, despite the fact that we've never had a claim; and the growing cost of fuel.

On the positive side, we have been able to develop economies that have largely eliminated the impact of these increased costs and hopefully these trends will be reversed, or at least remain constant, enabling us to maintain our current pricing structure and profit margins.

I am confident that 2008 will be as successful, if not more so, than 2007. We will be expanding our sales and marketing efforts in two specific areas, domestic distribution and international sales. Additionally, we will be adding new disposable instrumentation which has higher profit margins and therefore will allow us more pricing flexibility. We are also looking forward to realizing sales from products that we introduced in 2007.

Once again, I would like to thank you for interest and confidence in Solos Endoscopy and to encourage you to visit our Web site at www.solosendoscopy.com for all of the latest corporate developments.

Sincerely,
Robert Segersten
President, Solos Endoscopy, Inc.

There is nothing here about a partnership or merger.