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Letter from Alliqua CEO, Dave Johnston, to Shareholders
Date:3/7/2013

sources, staff, and clinical evidence behind our products, as well as the strategic plan necessary to propel our company into a new phase of expansion for 2013 and beyond.

Moving Alliqua Forward in 2013: Increasing Revenues and Expanding the Product Portfolio

Our hydrogel technology – the same technology that gave us our marketed surgical dressings, SilverSeal® and HyDress® – is the backbone of our company and represents an enormous opportunity for growth in many ways. In 2013 we intend to roll out a strategy to leverage this technology platform.

First, we are in the process of hiring a select group of senior, proven, sales and marketing managers who, together with our existing talent, will strive to increase revenues from our marketed products:  Together, we intend to:

a)       open up new distribution channels

b)       drive demand in our current channels including the VA

c)       leverage the strong clinical data

Through these and the existing educational and marketing efforts that are already underway, we expect to see SilverSeal® and HyDress® revenues start to increase in the Q2-Q4 timeframe.

Second, we plan to utilize business development opportunities to expand our product offerings. Namely, we intend to:

a)       focus on in-licensing marketed transdermal products to fulfill our vision around leveraging the hydrogel in transdermal drug delivery use.  Initially, we intend to focus on wound healing associated with pain, dermatology, infection and cancer

b)       expand our portfolio beyond products with potential hydrogel application by endeavoring to in-license or acquire additional wound-care products

This 2013 direction is intended to provide some early wins, while building
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SOURCE Alliqua, Inc.
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