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crashman

01/08/09 12:00 PM

#33488 RE: ROB #33487

We have historically depended primarily on one manufacturer for the production of our products. Such manufacturer was H.H. Brown Shoe
Technologies, Inc. (d/b/a Dicon Technologies), and closed its manufacturing operations in 2007. In 2007, an investment company bought
Dicon Technologies from H.H .Brown Shoe Technologies, Inc.. From that time until recently some products were manufactured in China by
partners of our manufacturer under an oral agreement using encapsulation technology instead of technology relating to hydrophilic sponges.
In
June 2008, Dicon began manufacturing at a temporary plant in the United States. Dicon is constructing a new facility in the United State that is
planned to be completed around the end of calendar year 2008 and will manufacture products for us.

http://www.pinksheets.com/edgar/GetFilingPdf?FilingID=6132933