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September 19, 2007
Dear Shareholders:
We are extremely pleased to issue this update to report
on several important milestones we have achieved over
the last several months regarding the surgical human
tissue welding technology, being developed by our Live
Tissue Connect subsidiary.
On July 2, we reported that LTC filed a 510(k) submission
with the U.S. Food and Drug Administration (FDA) for
a human vessel and duct sealing electro-surgical generator,
and two sealing instruments. A 510(k) filing seeks approval
to sell medical devices in the U.S., a key market for
LTC. In that announcement, we stated that information
regarding procedures using the LTC technology, and technical
information regarding the technology, was being removed
from the CSMG web site pending FDA clearance. Currently
we are working through the normal procedures of the
US FDA approval process.
In late July, we announced a new domain name for CSMG's
website, www.csmgtechinternational.com,
for our international operations. A separate website
for LTC, www.livetissueconnect.com
is under construction and should be available within
a few weeks.
We have started the certification process and are seeking
to gain European market approval via a CE Mark certification
before this year-end. We are anticipating having the
above generator and instruments, which address several
surgical procedures, in the European market by mid-2008
via various marketing arrangements.
Our strategy to maximize LTC revenues by forming five
wholly-owned LTC medical procedure-specific subsidiaries,
which we announced in May, is proving opportune and
timely. In essence, we were certain that by creating
five separate subsidiaries, we will maximize LTC's ability
to enter into more lucrative and focused marketing agreements,
partnerships, joint ventures, or other types of arrangements.
The targeted surgical specialty and the related newly-established
subsidiaries are:
- Gynecology and General Surgery (GSG Medical Group)
- Orthopedics and Arthroscopy (Orthopedic Tissue
Sciences)
- Colon Rectal Surgeries (Colorectal Connection Management)
- Pulmonary/Lung (Pulmonary Sealing Sciences)
- Urology (Urological Tissue Welding)
We are pleased to report that LTC is attracting interest
from many significant medical device companies and distributors
interested in representing, licensing, and/or marketing
some aspect of the LTC technology. We believe each LTC
wholly-owned subsidiary represents a distinct manufacturing,
marketing, or licensing opportunity, and represents
a major commercial opportunity for our company. We are
confident this approach adds considerable value to the
company.
Significantly, we also anticipate the first manufactured
product meeting US and international standards to be
available for sales and distribution prior to year end.
To this purpose we have opened discussions with a number
of independent distributors worldwide which is in addition
to the aforementioned major medical device companies
interested in licensing, distributing, manufacturing
or marketing the product. In anticipation of the successful
completion of these milestones we have started developing
a highly experienced and well qualified LTC management,
sales and distribution team.
Our LTC management team, along with our world-class
medical device design and manufacturing partnerships
in the U.S., coupled with our recent filing with the
U.S. Food and Drug Administration, brings LTC's specialized
medical device technology ever closer to the medical
industry.
Looking forward, we have identified 12 procedure-specific
divisions, but only established subsidiaries for the
first five we regard as closest to product and market
completion. This subsidiary structure should enable
us to leverage LTC's R&D across multiple medical
disciplines. As an example, the R&D effort that
went into developing a sealing device for gynecological
arteries and veins might be leveraged into a similar
device for urological procedures though would likely
be different in shape and/or size. This structure also
lets potential marketing partner's select surgical specialties
where they have strong physician relationships and/or
pre-existing distribution channels.
On July 10, we announced, receipt of another tissue
welding patent in Ukraine for "Method For Welding
of Biological Tissue, Control Method For Welding Tissue
(variants) and Apparatus For Biological Tissue Welding
(variants)." This approval follows a similar U.S.
patent which was already approved. The basic tissue
welding science was invented and developed at the internationally
renowned E.O. Paton Institute of Electric Welding, National
Academy of Sciences of Ukraine in Kiev, which is headed
by Professor B.E. Paton
LTC's surgical tissue bonding / welding device is a
patented platform technology that bonds and reconnects
human soft tissue through fusion, in contrast with conventional
wound closing devices such as sutures, staples, sealant,
or glues. LTC currently holds a total of approximately
40 patents in the U.S., Australia, Canada, European
Union, and other countries.
Significantly, in June we announced that our Ukraine
partner, International Association Welding ("IAW"),
had received approval for surgical welding devices for
sale in Russia. Approval was granted by the Russian
Federal Service of Health Care and Social Development
for a tissue welding electro surgery generator and eight
instruments for use in Russian hospitals and clinics.
The approval is for a wide range of procedures the electro-surgical
tissue welding generator and ancillary instruments can
perform.
Our press release issued on July 25 2007, entitled
"CSMG Technologies Reviews Last 12 Months at Empire
Financial Group Conference" addresses milestones
and highlights achieved over the prior year. It may
be read in its entirety at http://www.csmgtechinternational.com/news/press_072507.html.
We continue to work with Empire Financial Group (AMEX:
EFH
- News),
our investment banker, to assist us in corporate finance.
Management of the company is aggressively and tirelessly
focused on developing and implementing strategies that
will quickly, efficiently, and most profitably deliver
the LTC surgical technology to markets worldwide.
For more complete, detailed information about CSMG
Technologies, please access our website: www.csmgtechinternational.com.
We will continue to keep you apprised of our progress
as we reach additional milestones. In closing, I want
to express management's appreciation and thanks for
the continuous support of our shareholders and the investment
community. We will continue to strive to exceed your
expectations for CSMG and Live Tissue Connect.
Thank you.
Donald S. Robbins
Chairman/ CEO
CSMG Technologies, Inc.
701 North Tower
500 N. Shoreline
Corpus Christi, TX 78471
This press release may contain forward-looking
information within the meaning of Section 21E of the
Securities Exchange Act of 1934 as amended (the Exchange
Act), including all statements that are not statements
of historical fact regarding the intent, belief or current
expectations of the company, its directors or its officers
with respect to, among other things: (i) the company's
financing plans; (ii) trends affecting the company's
financial condition or results of operations; (iii)
the company's growth strategy and operating strategy;
and (iv) the declaration and payment of dividends. The
words "may," "would," "will,"
"expect," "estimate," "anticipate,"
"believe," "intend" and similar
expressions and variations thereof are intended to identify
forward-looking statements. Investors are cautioned
that any such forward-looking statements are not guarantees
of future performance and involve risks and uncertainties,
many of which are beyond the company's ability to control,
and that actual results may differ materially from those
projected in the forward-looking statements as a result
of various factors.
CONTACT:
CSMG Technologies, Inc.
Donald S. Robbins, 361-887-7546
President and CEO
or
K. Bruce Jones, 770-955-0409
or
ROI Group Associates, Inc.
Michael Dodge, 212-495-0744
mdodge@roiny.com
or
Bob Giordano, 212-495-0201
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