-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 MQDZjp6tayOLB3iOfFM23XCZ6TwnWElBpkTs6IzMN0YIy0ykMSYPwUmng5dLqdbx
 WWGC5yHfvdE48dUGqASh5Q==

<SEC-DOCUMENT>0001104659-07-086307.txt : 20080428
<SEC-HEADER>0001104659-07-086307.hdr.sgml : 20080428
<ACCEPTANCE-DATETIME>20071130151649
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-07-086307
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20071130

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RETRACTABLE TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000946563
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				752599762
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		511 LOBO LANE
		CITY:			LITTLE ELM
		STATE:			TX
		ZIP:			75068-0009
		BUSINESS PHONE:		9722941010

	MAIL ADDRESS:	
		STREET 1:		511 LOBO LANE
		CITY:			LITTLE ELM
		STATE:			TX
		ZIP:			75068-0009
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[KRAGE
&amp; JANVEY, L.L.P. LETTERHEAD]</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;">
 <tr>
  <td width="113" valign="bottom" style="padding:0in .7pt 0in .7pt;width:84.7pt;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">VIA FEDEX</font></u></p>
  </td>
  <td width="218" valign="top" style="padding:0in .7pt 0in .7pt;width:163.4pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="279" valign="top" style="padding:0in .7pt 0in .7pt;width:209.3pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="50%" style="border-collapse:collapse;width:50.0%;">
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Kevin L. Vaughn</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Branch Chief</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">United States Securities
  and</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt 20.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exchange Commission</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100 F. Street, N.E.</font></p>
  </td>
 </tr>
 <tr>
  <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, D.C. 20549</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="60%" style="border-collapse:collapse;width:60.5%;">
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.66%;">
  <p style="margin:0in 0in .0001pt;"><a name="TableHead"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font></a></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in .7pt;width:79.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retractable
  Technologies, Inc.</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in .7pt;width:79.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form 10-K for the year
  ended December 31, 2006</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in .7pt;width:79.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed April 2, 2007</font></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" valign="top" style="padding:0in .7pt 0in .7pt;width:5.66%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="79%" valign="top" style="padding:0in .7pt 0in .7pt;width:79.18%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">File No. 1-16465&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width="15%" valign="top" style="padding:0in .7pt 0in .7pt;width:15.16%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr. Vaughn:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
purpose of this letter is to respond, on behalf of Retractable Technologies,
Inc. (the &#147;Company&#148;), to the staff&#146;s comments contained in your letter of
October 29, 2007.&#160; The Company
appreciates your patience in allowing it some additional time beyond the
November 12, 2007, response date as it was in the process of completing and
filing its Form 10-Q for the quarter ended September 30, 2007.&#160; Your comments are shown in boldface type and
the Company&#146;s responses follow.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Selected Financial Data, page 14</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that you have disclosed total stockholder&#146;s equity of $59,746,000 and
$63,625,000 at December 31, 2006 and 2005, respectively.&#160; Please reconcile these amounts to your
balance sheet on page F-4, which discloses total stockholders&#146; equity of
$59,710,000 and $63,235,000, respectively.&#160;
Revise future filings as necessary based on our comment.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Total
Stockholders&#146; Equity&#148; for 2006 and 2005 was $59,710,312 and $63,235,241,
respectively.&#160; The disclosure on the
Balance Sheet was correct and the disclosure under &#147;<b>Item 6
Selected Financial Data</b>&#148; was incorrect.&#160; &#147;<b>Item 6 Selected Financial
Data</b>&#148; will be corrected in future filings so that the &#147;Total
Stockholders&#146; Equity&#148; amounts (in thousands) will be $59,710 and $63,235.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
2</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 2 &#151; Summary of Significant
Accounting Policies, page F-9</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Revenue Recognition, page F-10</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
from the information provided on page 6 that you have a right-of-return policy
for domestic contracts.&#160; Please tell us
and revise this note in future filings to describe the material terms and
conditions of your return policy and your accounting policy for returns.&#160; Additionally, if material, revise future
filings to include a rollforward of your allowance for sales returns as
required by Rule 12-09 of Regulation S-X.</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
material terms of the return policy for domestic customers is fully set forth
under the Company&#146;s discussion of &#147;<u>Working Capital Practices</u>&#148; in &#147;<b>Item 1 Business</b>&#148;.&#160; The
language in the eighth paragraph comes directly from the Company&#146;s standard
U.S. Distribution Agreement.&#160; When the
Company has returns, revenue is debited for the amount of the return, net of
the restocking fee. Cost of goods sold is credited.&#160; The customer&#146;s receivable balance is credited
and inventory is debited.&#160; Any estimates
for rebates are adjusted accordingly.&#160;&#160;
The Company has a small provision for returns.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Returns,
as a percentage of Total sales, were 0.46%; 0.19%; 0.37%; 0.21% and 0.48% for
2002, 2003, 2004, 2005 and 2006 respectively and the Company&#146;s reserve for
returns has been less than $50,000 for this same period.&#160; Returned products for all purposes were
$92,883; $36,161; $78,808; $51,575; and $120,343 for 2002, 2003, 2004, 2005,
and 2006 respectively. Since returns have not been material, the Company does
not plan to include a roll forward of its allowance for sales returns under
Rule 12-09 of Regulation S-X.&#160; However,
the Company will continue to monitor the level of returns for materiality and
potential future disclosure under Rule 12-09 of Regulation S-X.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company will revise its &#147;<b>Revenue recognition</b>&#148;
disclosures under Note<b>  </b>&#147;<b>2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b>&#148; in future
filings as follows:</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;The Company&#146;s domestic
return policy is set forth in its standard Distribution Agreement.&nbsp; This
policy provides that a customer may return incorrect ship&#173;ments within 10 days
following arrival at the distributor&#146;s facility.&nbsp; In all such cases the
distributor must obtain an authorization code from the Company and affix the
code to the returned product. &nbsp;The Company will not accept returned goods
without a returned goods authorization number.&nbsp; The Company may refund the
customer&#146;s money or replace the product.</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s return policy
also provides that a customer may return product that is overstocked.&nbsp;
Overstocking returns are limited to two times in each 12 month period up to one
percent of</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
3</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">distributor&#146;s total purchase
of products for the prior 12 month period.&nbsp; All product overstocks and
returns are subject to inspection and acceptance by manufacturer. </font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s international
Distribution Agreements do not provide for any returns.</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company records an
allowance for estimated returns as a reduction to accounts receivable and gross
sales.&#160; Historically, returns have been
less than 0.48% of Total sales.&#148;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accordingly,
the Company respectfully submits that its modified disclosures for returns will
be in compliance with generally accepted accounting principles and that further
revision of such disclosures is not necessary.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please
note that we have responded previously to the staff regarding this issue in a
letter dated June 8, 2005, from me (on behalf of the Company) to Mr. Martin F.
James, Senior Assistant Chief Accountant of the Division of Corporation
Finance.&#160; We have attached as an appendix
the Company&#146;s response (which included a recital of the staff&#146;s prior comments)
for your convenience.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Marketing Fees, page F-11</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that your marketing fees payable of $1,419,760 relate to an agreement that was
terminated in 2003.&#160; It is unclear from
your disclosures as to why these liabilities remain unpaid at December 31,
2006.&#160; Please tell us and revise this
note in future filings to disclose the current status of this liability.</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company filed suit against Abbott Laboratories in 2005 for breach of
contract.&#160; The final disposition of this
payable, as well as $144,000 owed by the defendant under the same agreement,
cannot be determined until the litigation is completed.&#160; The Company does not expect the liability, if
any, to exceed the amounts accrued.&#160; The
&#147;<b>Marketing fees</b>&#148; disclosures under Note
&#147;<b>2</b>  <b>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</b>&#148;<b>  </b>will be
revised in future filings as follows:</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;Marketing fees</font></b></p>

<p style="margin:0in 1.0in .0001pt;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under
a sales and marketing agreement with Abbott, the Company paid marketing fees
until the Company terminated the contract for breach.&nbsp; The contracted
services were to include participation in promotional activities, development
of educational and promotional materials, representation at trade shows,
clinical demonstrations, inservicing and training, and tracking reports</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
4</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">detailing
the placement of the Company&#146;s products to end-users. Marketing fees were
accrued at the time of the sale of product to Abbott. These fees were paid
after Abbott provided the Company a tracking report of product sales to
end-users. These costs were included in Sales and marketing expense in the
Statements of Operations. No marketing fees have been accrued since October 15,
2003, the date the National Marketing and Distribution Agreement with Abbott
was terminated. The Company filed suit against Abbott in August 2005 for breach
of contract.&#160; The Company does not expect
the eventual liability for marketing fees, if any, to exceed the amount
accrued.&#148;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Reimbursed Discounts, page F-11</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
your disclosure that &#147;payments under the discount reimbursement program were
recognized upon invoicing of amounts due under the agreement&#133;&#148;&#160; Please reconcile this disclosure to your
revenue policy on page 19 which states you recognize these revenues &#147;upon
delivery of the product.&#148;&#160; Revise future
filings as necessary based on our comment.</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
statement that &#147;Payments under the discount reimbursement program were
recognized upon invoicing of amounts due under the agreement ...&#148; set forth
under &#147;<b>Reimbursed Discounts</b>&#148; under Note &#147;<b>2</b>  <b>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</b>&#148; is correct.&#160; The
invoicing that is referred to in that paragraph is the invoicing to one of the
parties to the settlement agreements discussed in Note<b> &#147;13.
LITIGATION SETTLEMENTS</b>&#148;. In future filings the Company will revise
the language now set forth under &#147;SIGNIFICANT ACCOUNTING POLICIES&#148; set forth
under &#147;<b>Item 7 Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations</b>&#148; to reflect that same
language under Note <b>2</b>.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 5.&#160; Intangible Assets, page F-14</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that your license agreement requires you to pay a royalty fee of 5% of your
gross sales.&#160; Given that your royalty
fees were approximately 8% and 7% of your total sales for the years ended
December 31, 2006 and 2005, respectively, please tell us and revise future
filings to clarify how your royalty expense is determined.</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Under
a Technology License Agreement, the Company pays royalties of five percent of <i>gross sales</i> for the right to utilize the VanishPoint&#174;
technology.&#160; Invoices sent to the Company&#146;s
customers are billed at the Wholesale Acquisition Cost and represent gross
sales.&#160; &#147;Sales, net&#148; on the Statements of
Operations is calculated by reducing revenues by both actual and estimated
rebates.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
5</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
material terms of the Company&#146;s rebate policy are set forth under &#147;<b>Revenue recognition</b>&#148; in Note &#147;<b>2 SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</b>&#148; to the financial statements.&#160; The revenue as reflected on the Statements of
Operations is not the revenue upon which the royalty is calculated.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Future
filings will be amended to add the following language to Note &#147;<b>5 INTANGIBLE ASSETS</b>&#148;:</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gross
sales upon which royalties are based were $41,971,339; $34,300,473; and
$36,923,900 for 2006, 2005, and 2004, respectively.&#148;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9A.&#160; Controls and Procedures, page 22</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
your disclosure that there was a material weakness identified whereby a
significant entry was initially made in the wrong period.&#160; Please address the following:</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .25in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Revise
this item to disclose the nature of the material weakness identified in your
disclosure.&#160; In this regard, also revise
to disclose the specific steps that the company has taken, if any, to remediate
the material weakness and disclose whether the company believes that the
material weakness still exists at the end of the period covered by the report.</font></b></p>

<p style="margin:0in .25in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .25in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font size="2" style="font-size:10.0pt;font-weight:bold;">In
light of the fact that a material weakness existed, please revise this item to
disclose in reasonable detail the basis for officers&#146; conclusions that the
company&#146;s disclosure controls and procedures were nonetheless effective as of
the end of the period covered by the report.</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
preparing its financial statements and disclosures, it came to the Company&#146;s
attention that the Company had a material weakness in its internal controls and
procedures whereby a significant entry (for $1,708,608) was initially made in
the wrong period.&#160; The material weakness
concerned an under-accrual of rebates due to an error in posting the year-end
accrual.&#160; This was related to a one-time
adjustment specifically associated with the discount program which ended
December 31, 2006.&#160; The calculation
itself was reasonable, but was recorded in January 2007 rather than December
2006.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Extenuating
circumstances, including a September 2006 conversion to a new accounting system
and the third quarter&#146;s termination of the discount reimbursement program
(which necessitated a change in the manner in which the estimate for rebates
was calculated), contributed to the error.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since
the audit adjustment to correctly record the discounts had been made and no
further significant transactions related to the discounts are expected in the
future, the Company</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
6</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">believes
that the material weakness no longer existed at the end of the period covered
by the report and therefore no remediation of the material weakness was
necessary.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Even
though the Company does not believe that there was a material weakness as of
the end of the period covered by the report, it has taken the following steps
to enhance its internal controls in case it ever has a similar discount
program:</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .25in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company now reviews the
rebate calculation earlier in its timeline in order to have the most up-to-date
trial balance for future audits, as well as quarterly reviews;</font></p>

<p style="margin:0in .25in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company has added an
additional accountant&#146;s position to its staff; and</font></p>

<p style="margin:0in .25in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company has increased
its cross training for review of the rebate calculation and timely entry.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
basis for the CEO&#146;s and CFO&#146;s conclusion that the Company&#146;s disclosure controls
and procedures were effective as of the end of the period covered by the report
was the fact that the error was both eventually discovered and corrected in
time so that the Company&#146;s disclosures were both accurate and timely made.&#160; Furthermore, the Company has in place
additional multiple controls as part of its regular review processes that had not
yet been performed when the misposting was discovered.&#160; Those reviews, more likely than not, would
also have detected a problem of this magnitude.&#160;
Such reviews include, but are not limited to, analyses of average sales
prices, cost of goods sold, profit margins, and the relationships of each to
the other.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company will file an amended Form 10-K with the following Item 9A disclosure:</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;Item 9A.
Controls and Procedures.</font></b></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
preparing its financial statements and disclosures relating to the 2006 year,
it came to Management&#146;s attention that the Company had a material weakness in
its internal controls and procedures whereby a significant entry (for
$1,708,608) was initially made in the wrong period.&#160; The material weakness concerned an under-accrual
of rebates due to an error in posting the year-end accrual.&#160; This was related to a one-time adjustment
specifically associated with the discount program which ended December 31,
2006.&#160; The calculation itself was
reasonable, but was recorded in January 2007 rather than December 2006.</font></p>

<p style="margin:0in 1.0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Extenuating
circumstances, including a September 2006 conversion to a new accounting system
and the third quarter&#146;s termination of the discount reimbursement program
(which</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
7</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">necessitated
a change in the manner in which the estimate for rebates was calculated),
contributed to the error.</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Since
the audit adjustment to correctly record the discounts had been made and no
further significant transactions related to the discounts are expected in the
future, Management believes that the material weakness no longer existed at the
end of the period covered by the report and therefore no remediation of the
material weakness was necessary.</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Even
though the Company does not believe that there was a material weakness as of
the end of the period covered by the report, it has taken the following steps
to enhance its internal controls in case it ever has a similar discount
program:</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.5in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="2" style="font-size:10.0pt;">&#160;&#160; The Company now reviews the rebate calculation
earlier in its timeline in order to have the most up-to-date trial balance for
future audits, as well as quarterly reviews;</font></p>

<p style="margin:0in 1.5in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.5in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="2" style="font-size:10.0pt;">&#160;&#160; The Company has added an additional
accountant&#146;s position to its staff; and</font></p>

<p style="margin:0in 1.5in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.5in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font><font size="2" style="font-size:10.0pt;">&#160;&#160; The Company has increased its cross training
for review of the rebate calculation and timely entry.</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to paragraph (b) of Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act
of 1934 (the &#147;Exchange Act&#148;) and on March 29, 2007, our President, Chairman,
and Chief Executive Officer, Thomas J. Shaw (the &#147;CEO&#148;), and our Vice President
and Chief Financial Officer, Douglas W. Cowan (the &#147;CFO&#148;), acting in their
capacities as our principal executive and financial officers, evaluated the
effectiveness of our disclosure controls and procedures, as defined in Rule
13a-15(e) or Rule 15d-15(e), and determined that, as of December 31, 2006, and
based on the evaluation of these controls and procedures as required by
paragraph (b) of Rule 13a-15, or Rule 15d-15 there were no significant
deficiencies in these procedures. The CEO and CFO determined that our
disclosure controls and procedures are effective.</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
8</font></p>

<p style="margin:0in 1.0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
basis for their conclusion that the Company&#146;s disclosure controls and procedures
were effective at the end of the period covered by the report (despite the
error discussed above) was the fact that the error&#160; was both eventually discovered and corrected
in time so that the Company&#146;s disclosures were both accurate and timely
made.&#160; Furthermore, the Company has in
place additional multiple controls as part of its regular review processes that
had not yet been performed when the misposting was discovered.&#160; Those reviews, more likely than not, would
also have detected a problem of this magnitude.&#160;
Such reviews include, but are not limited to, analyses of average sales
prices, cost of goods sold, profit margins, and the relationships of each to
the other.</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Finally,
the CEO and CFO did not identify fraud that involved our management or any other
employee who had a significant role in our internal controls.</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 1.0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">They did not find any other
deficiencies or weaknesses which would require changes to be made or corrective
actions to be taken related to our internal controls.<b>  </b>There have been no changes during the fourth quarter of 2006
or subsequent to December 31, 2006, in our internal controls over financial
reporting (other than as set forth above) or in any other factor that has
materially affected or is reasonably likely to materially affect our internal
controls over financial reporting.&#148;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
31.2</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that the certification filed as 31.2 does not contain the introductory language
to paragraph 4.&#160; The required
certifications must be in the exact form prescribed; the wording of the required
certifications may not be changed in any respect, except for the modifications
temporarily permitted to be made to the fourth paragraph of the certification
pursuant to Part III.E of Release No. 8238.&#160;
Accordingly, please file an amendment to your Form 10-K that includes
the entire filing together with the certifications of each of your current CEO
and CFO in the form currently set forth in Item 601(b)(31) of Regulation S-K.</font></b></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This
language was inadvertently deleted from the certification.&#160; The Company will file an amended Form 10-K to
revise the certification.&#160; The Company
respectfully requests it be allowed to file this amendment after you have
reviewed its responses to the staff&#146;s other comments in the event one or more
of those responses might require an amended filing as well.</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">KRAGE
&amp; JANVEY, L.L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.
Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November
30, 2007</font></p>

<p style="margin:0in 0in .0001pt 9.35pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page
9</font></p>

<p style="margin:0in 0in .0001pt .2in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As
we previously discussed, the Company will await your comments on its response
prior to filing its amended Form 10-K with the amended certification so that,
if necessary, any additionally required disclosures may be made.&#160; Please do not hesitate to contact us with any
comments or concerns regarding this matter.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="99%" style="border-collapse:collapse;width:99.84%;">
 <tr>
  <td width="60%" valign="top" style="padding:0in .7pt 0in .7pt;width:60.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="60%" valign="top" style="padding:0in .7pt 0in .7pt;width:60.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="60%" valign="top" style="padding:0in .7pt 0in .7pt;width:60.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="60%" valign="top" style="padding:0in .7pt 0in .7pt;width:60.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.1%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ralph S. Janvey&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="60%" valign="top" style="padding:0in .7pt 0in .7pt;width:60.6%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.1%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ralph S. Janvey</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in .7pt 0in .7pt;width:1.3%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">cc:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Douglas W. Cowan</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jack Lamkin, C.P.A.</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Kristie L. Blumenschein,
  Esq.</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="91%" valign="top" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attachment</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ACKNOWLEDGMENT</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In connection with its response
to a comment letter dated October 29, 2007, from the United States Securities
and Exchange Commission (the &#147;Commission&#148;) relating to its Form 10-K filed on
April 2, 2007, Retractable Technologies, Inc. (the &#147;Company&#148;) hereby
acknowledges that:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .5in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company is
responsible for the adequacy and accuracy of the disclosure in the filing;</font></p>

<p style="margin:0in .5in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .5in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Staff comments
or changes to disclosure in response to staff comments do not foreclose the
Commission from taking any action with respect to the filing; and</font></p>

<p style="margin:0in .5in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in .5in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company may
not assert staff comments as a defense in any proceeding initiated by the Commission
or any person under the federal securities laws of the United States.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="86%" style="border-collapse:collapse;width:86.72%;">
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: November 30, 2007</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retractable Technologies,
  Inc.</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:1.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:1.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:1.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.86%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Douglas W. Cowan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width="0%" valign="top" style="padding:0in .7pt 0in .7pt;width:.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="0%" valign="top" style="padding:0in .7pt 0in .7pt;width:.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Douglas W. Cowan</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:1.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" valign="top" style="padding:0in .7pt 0in .7pt;width:43.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President and Chief
  Financial Officer</font></p>
  </td>
  <td width="1%" colspan="2" valign="top" style="padding:0in .7pt 0in .7pt;width:1.52%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\lhouse\07-30354-1\task2552962\30354-1-ma.htm',USER='lhouse',CD='Nov 30 14:11 2007' -->



<br clear="all" style="page-break-before:always;">
<div style="font-family:Times New Roman;">

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Appendix</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">VIA
EDGAR</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Assistant Chief
Accountant</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Division of Corporation
Finance</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">United States Securities
&amp; Exchange Commission</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington, DC 20549</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font></p>
  </td>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retractable Technologies,
  Inc. (&#147;RTI&#148; or the &#147;Company&#148;)</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form 10-KSB for Year Ended
  December 31, 2004</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed March 31, 2005</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.48%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:6.18%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="51%" valign="top" style="padding:0in .7pt 0in .7pt;width:51.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File No. 001-16465</font></p>
  </td>
  <td width="38%" valign="top" style="padding:0in .7pt 0in .7pt;width:38.2%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Mr. James:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to your request and our letter of June 7, 2005, the following are RTI&#146;s
responses to comments 1 and 2 which were set forth in your letter of May 24,
2005. In accordance with our letter of June 7, 2005, we anticipate filing our
responses to comments 3 and 4 immediately upon notification from certain
settling parties of their approval of our proposed disclosures but, in any
event, on or before June 27, 2005.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form 10-KSB for the year ended December 31, 2004 </font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item
7 &#151; Financial Statements </font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Note
2. Summary of Significant Accounting Policies </font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revenue
Recognition &#151; Page F-9 </font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Tell us supplementally and revise your revenue recognition policies in
future filings to describe any customer acceptance privileges and rights of
return you provide your customers and distributors as well as any other post
shipment obligations you undertake. Explain how these arrangements impact
recognition of revenue.</font></b><font size="2" style="font-size:10.0pt;">  </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s international
contracts do not provide for any returns.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s domestic
return policy is set forth in our standard Distribution Agreement, a copy of
which was incorporated by reference into the Company&#146;s Form 10-KSB as Exhibit
No. 10.1.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 2</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This policy provides that a
customer may return incorrect shipments within 10 days following arrival at the
distributor&#146;s facility. In all such cases the distributor must obtain an
authorization code from the Company and affix the code to the Returned Product.
The Company will not accept returned goods without a Returned Goods
Authorization Number. The Company may refund the customer&#146;s money or replace
the product.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s return policy
also provides that a customer may return product that is overstocked.
Overstocking returns are limited to two times in each twelve month period up to
One Percent (1%) of Distributor&#146;s total purchase of Products for the prior
twelve month period upon the following terms: i) an &#147;Overstocked&#148; Product is
that portion of Distributor&#146;s inventory of the Product (individual catalog
number) which exceeds Distributor&#146;s sales volume for the Product during the
preceding four months; ii) Distributor must not have taken Delivery of the
Product which is Overstocked (individual catalog number) during the preceding
four months, iii) Overstocked Product held by Distributor in excess of twelve
(12) months from the date of original invoice will not be eligible for return;
iv) the Overstocked Product must be returned to the Company in the Company&#146;s
saleable case cartons which are unopened and untampered with no broken or
re-taped seals; v) Distributor will be granted a credit which may be used only
to purchase other Products from the Company, the credit to be in the amount of
the invoice price of the returned Products less a 10% restocking fee which will
be assessed against Distributor&#146;s subsequent purchase of Product;
vi)&nbsp;Distributor must obtain an authorization code from the Company&#146;s distribution
department and affix the code to the Returned Product; and vii) Distributor
shall bear the cost of shipping the Returned Products to the Company. All
Product overstocks and returns are subject to inspection and acceptance by
Manufacturer.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Returned products for all
purposes were $92,883; $36,161; and $78,808 for 2002, 2003, and 2004
respectively. Returns, as a percentage of revenue, were 0.46%; 0.19%; and 0.37%
for 2002, 2003, and 2004 respectively.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We established a reserve for
returns based on one-fourth of one percent of revenues. The current balance in
the reserves account is $42,000. The Company continues to monitor the reserve
for adequacy. Generally, returns are expensed as received under the terms of
the Company&#146;s return policy. We believe this procedure reflects the appropriate
impact of our return policy for purposes of revenue recognition.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has no other
post shipment obligations.</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 3</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Given that the amounts
involved are not material, nor do we expect them to be, the Company
respectfully submits that its current accounting and disclosures for returns
are in compliance with generally accepted accounting principles and that
revision of such disclosures is not necessary.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In prior correspondence to
the staff regarding the Company&#146;s Form 10-SB initially filed on June 23, 2000,
RTI provided a final amended response in a letter dated January 16, 2001, to a
similar comment set forth in a staff letter issued by Mr. Barry N. Summer dated
November 27, 2000. For your convenience, the following italicized section sets
forth our prior response in full and without revision.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Prior Comment 24</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.12%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">10.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.9%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">With regard to your return policy for product
  overstock, tell us how you considered SFAS No. 48, SAB 101 question No. 9 and
  Frequently Asked Questions (FAQ), topic 13.A.4.</font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 24.5pt;text-indent:.2in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">SFAS NO. 48</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI
appears to meet all of the requirements of SFAS No. 48. Under Paragraph six
there are six separate conditions that must be met in order to record the
revenue at the time of sale. RTI&#146;s analysis of these conditions is as follows:</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">a.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The
  seller&#146;s price to the buyer is substantially fixed or determinable at the
  date of sale.</font></i><font size="2" style="font-size:10.0pt;">  </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI&#146;s
price is fixed by contract with the purchaser and is reflected on purchase
orders.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">b.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The buyer has paid the seller, or the buyer is
  obligated to pay the seller, and the obligation is not contingent on resale
  of the product. </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Sales to
our customers are not contingent on resale and the buyer is obligated to pay
RTI by the terms of the contract and when title to the product passes to the
buyer, generally when the products are shipped from RTI&#146;s plant.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">c.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The buyer&#146;s obligation to the seller would not be
  changed in the event of theft or physical destruction or damage of the
  product. </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 4</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Once title
has passed, the buyer&#146;s obligation has not changed in the event of theft or
physical destruction or damage to the product.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">d.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The buyer acquiring the product for resale has
  economic substance apart from that provided by the seller (i.e., the buyer
  actually has physical facilities and an employee base that transacts business
  and does not just exist &#147;on paper&#148;). </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Our
customers have established businesses and most are well-known in the industry.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">e.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The seller does not have significant obligations
  for future performance to directly bring about resale of the product by the
  buyer. </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI has no
obligation to bring about the resale of the product by the buyer. RTI does have
an obligation, as a medical device manufacturer, to provide training for the
distributors and their sales representatives for marketing and use of the
product. This training occurs continuously and is conducted by RTI&#146;s staff. End
users must also be trained in the use of the product. RTI may assist
distributors in implementing a facility&#146;s clinical evaluations and, if the
facility decides to convert to RTI&#146;s products, assist in the conversion.</font></i></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Due to the
small size of RTI&#146;s staff in relation to its market, RTI contracts with its
distributors to fill a large part of marketing, clinical evaluations, and
training requirements for our products. In effect, RTI has outsourced its
marketing function. Additionally the distributors typically provide their own
marketing and promotional materials, subject to RTI&#146;s approval. Without the
network of distributors RTI has developed, RTI would not have the resources
necessary to adequately market its product due to the recent passage of
national &#147;safe needle&#148; legislation, as well as similar legislation passed by several
states in 2000. As an example, Abbott has over 250 sales representatives
marketing RTI&#146;s products in their safe needle program. Abbott developed a sales
and marketing program for their safe needle program to introduce these products
in the acute care market. The costs necessary to achieve the value of this
program and the same ability to penetrate the hospital market are definitely
marketing costs that RTI would otherwise incur if not outsourced in this
manner. In other words, the distributor is responsible for the marketing and
sale of the product to the end user, while RTI provides support after the sale,
if and when necessary.</font></i></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 5</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">f.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The
  amount of future returns can be reasonably estimated.</font></i><font size="2" style="font-size:10.0pt;">  </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI can
reasonably estimate future returns through its previous experience.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">SAB 101 QUESTION NO. 9</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI
appears not to be precluded from making a reasonable estimate of returns.
Paragraph 8 of SAB 101 question No. 9 defines factors, which may preclude a
company from making a reasonable estimate of returns. RTI&#146;s analysis is as
follows:</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">a.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The susceptibility of the product to significant
  external factors, such as technological obsolescence or changes in demand </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">At the
present time there is state legislation in 17 states and national legislation
requiring the use of safe needle devices. Such legislation was enacted due to
the 800,000 needlesticks reported each year in the U.S., exposing healthcare
workers and others to more than 20 bloodborne pathogens, including HIV (the
virus that causes AIDS) and hepatitis. RTI&#146;s products have received the highest
rating by an independent non-profit medical device research agency, ECRI. RTI
believes that demand for its products will continue to grow in the U.S. as well
as worldwide.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">b.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Relatively
  long periods in which a particular product may be returned</font></i><font size="2" style="font-size:10.0pt;">  </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Based on
prior history, RTI believes most of its distributors do not keep large amounts
of inventory due to the costs involved. Also, many distributors have RTI ship
products for them directly to their customers. Distributors also provide RTI
with tracking reports so RTI can determine how much of the product has been
sold and to whom it was sold. Therefore, RTI believes that our products are not
held for long periods of time, particularly since they are consumable products
in the healthcare industry.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">c.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Absence of historical experience with similar
  types of sales of similar products, or inability to apply such experience
  because of changing circumstances, for example, changes in the selling
  enterprise&#146;s marketing policies or relationships with its customers </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 6</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI has
experience with returns since we have had sales of over 23 million syringes
since 1997 (0.1% of the United States market).</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">d.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Absence
  of a large volume of relatively homogenous transactions</font></i><font size="2" style="font-size:10.0pt;">  </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">At the
present time we have two product lines sold to 7 general line distributors and
20 specialty line distributors. Pricing is the same for both categories of
distributors. Sales are relatively homogenous.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">SAB 101,
Question 9 lists additional factors beyond those listed in paragraph 8 of SFAS
No. 48 that may preclude a registrant from making a reasonable and reliable
estimate of product returns. RTI&#146;s analysis is as follows:</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">a.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Significant increases in or excess levels of
  inventory in a distribution channel (sometimes referred to as &#147;channel
  stuffing&#148;) </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI
believes that our distributors carry a low level of inventory since many of
them have us ship directly to the end user. Continuing orders from end users
would also indicate that they are not building inventories. We are aware of
where the products are going by the distributors providing us with tracking
reports.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">b.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Lack of &#147;visibility&#148; into or the inability to
  determine or observe the levels of inventory in a distribution channel and
  the current level of sales to end-users </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI does
have &#147;visibility&#148; as to the level of sales to end users as we receive monthly
tracking reports from our distributors which provide RTI with the facility name
and the quantity of product sold to that facility.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">c.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Expected introductions of new products that may
  result in the technological obsolescence of and larger than expected returns
  of current products </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI&#146;s new
product development does not compete with existing products, rather it serves
to increase the number of different types of products we provide.</font></i></p>

<p style="margin:0in 0in .0001pt .5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 7</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">d.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The
  significance of a particular distributor to the registrant&#146;s business, sales
  and marketing</font></i><font size="2" style="font-size:10.0pt;">  </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Currently
we do not have a particular distributor significant to our sales and marketing
plan that is subject to the overstocking provision. In any event, distributors
subject to the overstocking provision provide us with tracking reports that enable
us to monitor sales to the end users which we can use to evaluate the reserve
amount. It should be noted that Abbott has no overstocking provision in its
National Marketing and Distribution contract with RTI.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">e.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The
  newness of a product</font></i><font size="2" style="font-size:10.0pt;">  </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Our products
were introduced into the marketplace in 1997. During 1999 and 2000, RTI has
sold almost 23 million syringes (0.1% of the United States syringe market).
Furthermore, before a medical device is used in a facility, the device
undergoes a clinical evaluation in which the facility will test the product and
determine whether or not to use it. Our product looks very similar to the
standard products and requires some training, as with any new product.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="3%" valign="top" style="padding:0in .7pt 0in .7pt;width:3.94%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:1.0pt;font-style:italic;">&nbsp;</font></i></p>
  </td>
  <td width="4%" valign="top" style="padding:0in .7pt 0in .7pt;width:4.08%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">f.</font></i></p>
  </td>
  <td width="91%" valign="bottom" style="padding:0in .7pt 0in .7pt;width:91.98%;">
  <p style="margin:0in 0in .0001pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">The introduction of competitors&#146; products with
  superior technology or greater expected market acceptance and other factors
  that affect market demand and changing trends in that demand for the
  registrant&#146;s products </font></i></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">At the
present time there is state and national legislation requiring the use of safe
needle devices. Such legislation was enacted due to the 800,000 needlesticks
reported each year in the United States exposing healthcare workers and others
to more than 20 bloodborne pathogens, including HIV (the virus that causes
AIDS) and hepatitis.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI&#146;s products
have received the highest rating by an independent non-profit medical device
research agency, ECRI. RTI believes that demand for safe needle products will
continue to grow in the United States as well as worldwide. Given the time its
takes to bring a new medical device to market, including, but not limited to,
development of the product, patenting the product, obtaining &#147;approval&#148; of the
Food and Drug Administration, developing the manufacturing processes (if the
product can be manufactured at all), the design and building of the
manufacturing equipment, and the capacity of the </font></i></p>

<p style="margin:0in 0in .0001pt .5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&nbsp;</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 8</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">equipment manufacturers,
it will take a long time for the demand for new technology for safe needle
products to be brought to market. RTI believes its products are well positioned
to participate effectively in the safe needle market.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">FREQUENTLY ASKED QUESTIONS (FAQ), TOPIC 13.A.4.</font></i></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">RTI
believes its policies and procedures are within the parameters given by FAQ
Topic 13.A.4.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Additionally,
the reason for RTI&#146;s establishing a policy for a reserve beginning on October
1, 2000, attributable to the contractual overstocking provisions with its
specialty distributors is because the contracts that provide for overstocking
returns were effective October 1, 2000. Therefore, there is no effect on prior
period financial statements.</font></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Tell us supplementally and revise future filings to describe the
contractual pricing allowances you provide to distributors and explain how you
account for them.</font></b><font size="2" style="font-size:10.0pt;">  </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company prices its
products for domestic sales using a Wholesale Acquisition Cost (&#147;WAC&#148;). In
order to receive a contractual pricing allowance, the distributor must provide
a tracking report which shows, among other things, the facility that purchased
the products (typically the end user). The Company then issues a credit
memorandum to the distributor which brings the price of the product to the net
cost. Due to the inherent timing differences in our billing for purchases and
our receiving tracking reports, not all sales during the period have been
issued credit memoranda. In those instances where tracking reports have not
been received for the product sold during the period, the Company assumes all
sales will be tracked and therefore records an accrual for each distributor
that reduces revenues to the net cost and reduces accounts receivable for the
unreported tracking; i.e., the revenues are reported at the net whether or not
tracking reports have been received. If the net receivable ends up as a credit,
it is reclassified on the balance sheet as a current liability.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will revise its
future filings in the following manner to explain how it accounts for pricing
allowances:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Revenue is recognized for
sales to distributors when title and risk of ownership passes to the
distributor, generally upon shipment. Revenue is recorded on the basis of sales
price to distributors, less contractual pricing allowances. Contractual</font></p>

<p style="margin:0in 0in .0001pt .5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr. Martin F. James</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">June 8, 2005</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 9</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 38.9pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">pricing allowances consist
of (i) rebates granted to distributors who provide tracking reports which show,
among other things, the facility that purchased the products, and (ii) a
provision for estimated contractual pricing allowances for products that the
Company has not received tracking reports. Rebates are recorded when issued and
are applied against the customer&#146;s receivable balance. The provision for
contractual pricing allowances is reviewed at the end of each quarter and
adjusted for changes in levels of products for which there is no tracking
report. Additionally, if it becomes clear that tracking reports will not be
provided by individual distributors, the provision is further adjusted. The
estimated contractual allowance is netted against individual distributors&#146;
accounts receivable balances for financial reporting purposes. The resulting
net balance is reflected in accounts receivable or accrued liabilities, as
appropriate. The terms and conditions of contractual pricing allowances are
governed by contracts between the Company and its distributors. Revenue for
shipments directly to end-users is recognized when title and risk of ownership
passes from the Company. Any product shipped or distributed for evaluation
purposes is expensed.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Finally
and pursuant to your request, attached hereto as Exhibit A is a statement by
RTI acknowledging, among other things, its responsibility for the adequacy and
accuracy of the disclosures in its filings.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="72%" valign="top" style="padding:0in .7pt 0in .7pt;width:72.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly yours,</font></p>
  </td>
 </tr>
 <tr>
  <td width="72%" valign="top" style="padding:0in .7pt 0in .7pt;width:72.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="72%" valign="top" style="padding:0in .7pt 0in .7pt;width:72.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Ralph S. Janvey</font></p>
  </td>
 </tr>
 <tr>
  <td width="72%" valign="top" style="padding:0in .7pt 0in .7pt;width:72.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="72%" valign="top" style="padding:0in .7pt 0in .7pt;width:72.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0in .7pt 0in .7pt;width:27.14%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ralph S. Janvey</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RSJ/clm<br>
Enclosure</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


<br clear="all" style="page-break-before:always;">


<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT A</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RETRACTABLE TECHNOLOGIES, INC. ACKNOWLEDGMENT</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retractable
Technologies, Inc. hereby acknowledges that, in connection with responding to
SEC staff comments1 and 2 set forth in a letter dated May 24, 2005:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="530" valign="top" style="padding:0in 0in 0in 0in;width:397.45pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">It is responsible for the
  adequacy and accuracy of the disclosure in its filings; </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="530" valign="top" style="padding:0in 0in 0in 0in;width:397.45pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Staff comments or changes
  to disclosures in response to staff comments in the filings reviewed by the
  staff do not foreclose the Commission from taking any action with respect to
  the filing; and </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="4%" style="padding:0in 0in 0in 0in;width:4.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&#149;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="530" valign="top" style="padding:0in 0in 0in 0in;width:397.45pt;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RTI may not assert staff
  comments as a defense in any proceeding initiated by the Commission or any
  person under the federal securities laws of the United States. </font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="98%" style="border-collapse:collapse;width:98.76%;">
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: June 8, 2005</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RETRACTABLE TECHNOLOGIES,
  INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Thomas J. Shaw&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THOMAS J. SHAW</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PRESIDENT AND CHIEF
  EXECUTIVE OFFICER</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Douglas W. Cowan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DOUGLAS W. COWAN</font></p>
  </td>
 </tr>
 <tr>
  <td width="54%" valign="top" style="padding:0in .7pt 0in .7pt;width:54.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46%" valign="top" style="padding:0in .7pt 0in .7pt;width:46.0%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VICE PRESIDENT AND CHIEF
  FINANCIAL OFFICER</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 12.25pt;text-indent:-12.25pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBIT
A</font></u><font size="2" style="font-size:10.0pt;"> &#151; Page Solo</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\jnewcoma\07-30354-1\task2552497\30354-1-mc.htm',USER='jnewcoma',CD='Nov 30 10:52 2007' -->


</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
