Dear Shareholder,

You will probably note that we issued a news release and filed an 8k with the SEC stating that we have entered into a stock purchase agreement to acquire an 18% interest in Biofrontera. This transaction includes a possible ‘put’ purchase agreement with Heidelberg Innovations, a venture capital firm out of Heidelberg, Germany. You may also recall that we had a previous arrangement with Biofrontera that failed to materialize. However, since that time, conditions at Biofrontera have changed, and they are in the midst of placing on the German Bond Market a high risk, convertible debenture instrument that would require all the shareholders of Biofrontera to convert into a single class of common stock.

We were presented the opportunity to purchase a package, consisting of part debt and part equity, from a German government agency known as tbg, which early on in the development of Biofrontera constructed a complicated but beneficial financing package for Biofrontera’s start-up. We purchased that package for 1.5 million Euros with an additional package due later at 387K Euros. The instrument allowed us to convert the debt portion of the package, cleaning up Biofrontera’s balance sheet and making a future bond placement and hopefully a public offering possible. This effort by DNAPrint has removed substantial debt from the Biofrontera balance sheet and has created a future equity value for us if the bond placement is successful.

Why did we undertake this investment? First, we believe Biofrontera has a substantial potential market valuation. We also believe, despite the earlier failure of the larger acquisition, that we should maintain a relationship and pursue any and all opportunities to participate with Biofrontera and its shareholders in the growth of that company. Second, we will continue to expand our relationship with Biofrontera because they have two Phase II drugs that we can help develop, plus additional discovery compounds that we might partner and/or license. Third, both Biofrontera and DNAPrint would like to have corresponding facilities in each of their respective markets – DNAPrint would like to have a presence in Europe, and Biofrontera would like to have a presence in the U.S.  Finally, Biofrontera and DNAPrint believe that their technologies are synergistic for the development of drugs for personalized medicine. Biofrontera has the ability to isolate, identify and clone novel receptor pathways, and DNAPrint has the ability to identify and isolate unique genetic markers expressed by individuals whereby these unique pathways may be identified.

So over the coming months you may see additional investment in technologies between Biofrontera and DNAPrint, some licensing, joint partnering as well as joint development and mutually beneficial operations in each others’ home markets. We will also be sharing board members; currently Hector J. Gomez, M.D., Ph.D., DNAPrint’s Chairman and Chief Medical Officer, and I are members of Biofrontera’s supervisory board. The next objective for Biofrontera and the new supervisory board members will be to assist Biofrontera in going public. If it can achieve that goal, you as DNAPrint shareholders will be owners in Biofrontera through DNAPrint.

Company Contact:
Richard Gabriel
CEO and President
941 336-3400
-or-
Ron Stabiner
The Wall Street Group, Inc.
212-888-4848