A decade after DSHEA, we are proud of our contributions to the nutraceutical revolution. We pioneered the introduction of several healthful botanical extracts, phytochemicals and nutritional fine chemicals to the global marketplace and worked with standards agencies to develop quality criteria and monographs for these ingredients. Along the way, we found innovative applications for several traditional raw materials, which are now patented or patent pending both in the U.S. and internationally.

In the early part of 1996, Sabinsa pioneered the concept of enhancing the bioavailability of nutritional /dietary supplements with the introduction of BioPerine®. Many of you have embraced the use of BioPerine® (Black pepper extract) and included it into your formulations. In 1998, we introduced a novel and previously unknown use for Coleus forskohlii (ForsLean®) for promotion of lean body mass in weight management. The response to this product has been overwhelming. We thank you for your support in the use of these products.

Encouraged by the Nutritional industry, Sabinsa continues to invest in research on these products and continues to cover the usage of BioPerine® and ForsLean® with additional U.S., European and International patents.

From 1996 until today, many companies have taken our science (and our Intellectual Property), and ascribed it to generic material in their formulas. Such activities continue in light of our open efforts to educate these companies, and the industry, on intellectual property rights and patent infringement. It is against this background that Sabinsa made the decision to seek legal protection and remedies for our intellectual property and patent rights.

At no time have we intended to harass the industry that provides the very basis of our existence. Again, it is the few companies that continue to ignore the property rights of others, that infringe on intellectual property without regard to the owners, that Sabinsa has decided to take legal action against to protect our rights.

In the months and years ahead, Sabina’s commitment to the innovation of new products will continue, and we seek your understanding of the legal path we may be compelled to follow at times to protect our intellectual property rights.

As always, we will continue to foster the tradition of quality and innovation that you have come to expect from SABINSA, in the current year and in the years to come. I take this opportunity to wish you all a very Happy and Healthy 2004