Human Pheromone Sciences, Inc. - Sharehol...(tructures here in this country and...)

here in this country and in foreign markets.

Not only has our Company benefited financially from our agreements with

these world-class companies, our association with them has confirmed

the viability of our technology, an imperative for a small

technology-based business to generate interest of others in the longer

term.

-- While our historical business model has been validated by these

relationships, we are still dependent upon the internal timetable of

these licensees for the generation of revenues for our Company.

However, there are other viable and fast growing channels in which

consumer products are sold, including electronic media, and

direct-to-consumer companies, that may provide a more consistent flow

of revenues to our Company. During this year, your management has been

working to introduce our technology to several companies who are in

leaders in these fields. We hope to be able to provide more specifics

about these efforts shortly.

-- Technology - our heritage, our future; another focus of our Company.

During 2008, we have spent significant amounts of time, but not a lot

of money, in the development of new compounds. You will be hearing

more about the positive results of these efforts in the next two weeks.

-- Merger and Acquisition Opportunities. We feel strongly that our

current technology and new research and development initiatives can

continue to attract world-class partners. We have also undertaken a

program to seek mergers and/or other types of partnerships that can

enhance shareholder value - our ultimate goal.

Unlike many companies whose share price has dropped radically this year,

who have no historic operations, an un-tested business plan and tens of

millions of shares outstanding, our Compa
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