Due Diligence

[Mapleton]

BLLI DD - Updated 5/7/01

Estimated Float 2.5m

52 week range .56-2.50

http://finance.yahoo.com/q?s=BLLI.OB&d=t

Corporate Summary
Bio-Lok manufactures and distributes products and tools associated with dental implants. Bio-Lok has been in the dental business for more than twenty years and currently distributes their dental products to the United States as well as more than thirteen foreign countries. The most profitable product they market is the "Micro-Lok Precision Dental Implant System". This system allows a dentist to replace a patient*s damaged or missing tooth with an extremely high quality, natural looking manufactured tooth. As success rates and product longevity are constantly increasing, dental implants have become an alternative to dentures and bridge plates. Bio-Lok has a unique, high quality patented product as well as global distribution channels already in place. This, combined with the fact that Bio-Lok is fully reporting, has only a 6.1 million dollar market cap, is currently trading around $1.00, has been cash flow positive for the last two years, has earnings per share for the year 2000 of 8 cents per share, is projected to gross over $4,000,000 this year, (trading at less than 1 ½ times sales), and turn a net profit of over $740,000.00 which would bring earnings per share up to over 12 cents, makes Bio-Lok an excellent buyout candidate.

Facts to Look At
Significant Potential For Market Share Growth:
Bio-Lok’s Management has stated that it is committed to increasing sales of the company’s products in the U.S. during fiscal year 2001.Given the fact that annual U.S. sales of Dental implants are over $250 Million, the company has substantial potential to increase its market share.
Global Sales and Distribution Network Already In place:
BioLok has created a global distribution network for their dental products and already sells them in more than thirteen different Countries. This distribution network could rapidly increase the sales and profitability of a much larger domestic manufacturer of dental products, that primarily distributes to only the United States.

Strong Financial Condition:
Bio-Lok is very strong financially. They have a current ratio of 2.4 and a quick ratio of 1.0. They have been cash flow positive for the last two years.

Earnings Per Share:
The Company is currently trading at 8X 2001 estimated earnings.

Revs
The Company’s first quarter revenue of $705,000 is up 56% or $252,000 over the same period last year. Net profits of $142,000 rose 118%, up $77,000 from the same period last year. These results also reflect a 16% increase in sales and a 6% increase in profit from the fourth quarter of 2000.