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Dear Colleagues and Healthcare Providers,

The Reprocessing Industry was born when manufacturers started marketing their products as single-use, presumably to lower production costs and increase orders. In 2006, our industry generated in excess of $100 million in revenues and is expected to grow by 50% this year.

The FDA and CDRH (Center for Devices and Radiological Health) require reprocessing companies to maintain a level of quality control far beyond the measures taken by most OEMs. Every single reprocessed device must be inspected and tested before reuse. By comparison, OEMs test only 1% of their products.

Hospitals and surgical centers are under increasing pressure to control the spiraling costs of providing high quality healthcare. Additionally, the waste and environmental implications of disposable surgical devices is a matter of great concern for the entire medical community. Reprocessing is a safe and effective solution to these challenges. Over 50 million devices have been reprocessed and not once has there been an adverse event. As a result, millions of dollars and thousands of landfill acres have been saved.

There are a number of important distinctions between Northeast Scientific, Inc. (NES) and other reprocessing firms. For example, we were one of the first companies to start-up post FDA regulation of the industry. Our state-of-the-art facility was designed from the ground up to reprocess single-use devices in accordance with the most rigorous standards. We offer a modest line of high-demand products including the Ethicon Xcel Trocar. NES is one of only two companies to have received the 510K for this product. Additionally, our pricing is as much as 65% less than OEM rates.

At NES, patient safety always comes first. We are constantly evaluating our procedures to ensure that nothing is overlooked. We put a great deal of effort into winning the confidence of surgeons and their medical staff - and even more into keeping it. In fact, we're the only reprocessor with a Board Certified Surgeon as Chief Medical Officer.

In the coming months, we plan to expand our product line strategically and offer unique environmental services to further distinguish our company. Together, we can make a positive impact on healthcare costs while being good shepherds of the environment--one surgical device at a time.

That's why NES is smart healthcare.

Sincerely,

Craig Allmendinger
President & CEO
NEScientific, Inc.

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