The pharmaceutical outsource market is dynamic, competitive and rapidly growing. The increased demand for outsourced services has brought an evolution of two distinct markets within the service industry. The first is a traditional "full service value added" approach where a complete portion of drug discovery and/or development is contracted to a single company. The second approach is a "functional service" approach where particular commodity services are contracted to those specializing in specific functional areas. Mergers, acquisitions and external investment have brought pressure forcing companies to continually critically examine their research and development strategies. Meeting timelines, controlling costs and maintaining superior quality have led pharmaceutical companies, big and small, to the outsource market. Based upon the enormous cost to carry a drug to market and the high risk of failure, reducing time, cost and failure rate become the driving motivation leading companies to qualified service providers. The future will bring increased demand, increased competition and thus, constant pressure for service providers to deliver more for less.

India and China will aggressively enter the growing market boasting inexpensive, skilled labor. North American and European companies must weather the "storm of competition" by offering internationally competitive prices while maintaining a high standard of quality and adhering to strict delivery deadlines. The increased competition has made it imperative for companies to evaluate all systems, and procedures and eliminate inefficiencies. Contributing significantly towards the improvement of global health is a commitment and a mission of NAEJA Pharmaceutical Inc.

NAEJA was established in 1999 with a rollover of assets, including staff, equipment and intellectual property, from SynPhar Laboratories Inc. and research contracts from DrisCorp Inc. What began as a full fledged pharmaceutical company with an extensive intellectual property portfolio and a proven track record has evolved into an internationally respected pharmaceutical outsource service provider. NAEJA has carved a unique niche in the outsource industry offering extensive discovery experience and expertise. The flexibility NAEJA offers to custom design drug discovery services has kept NAEJA at the forefront of the industry. NAEJA's commitment to global health, extensive drug discovery experience and attention to continual improvement are key factors that contribute to NAEJA's success and keep the company at the forefront of the industry. NAEJA will continue to focus on delivering optimum service in a continued commitment to the pharmaceutical industry. It is through international teamwork that we must wage our war against illness and NAEJA will continue on with its mission making significant contributions as a valuable team member.

Sincerely,

Christopher G. Micetich