<SUBMISSION>
<ACCESSION-NUMBER>0000950148-02-002507
<TYPE>DEF 14A
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20021212
<FILING-DATE>20021025
<EFFECTIVENESS-DATE>20021025
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ADVANCED BIOTHERAPY INC
<CIK>0000791833
<ASSIGNED-SIC>8731
<STATE-OF-INCORPORATION>NV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>DEF 14A
<ACT>34
<FILE-NUMBER>000-26323
<FILM-NUMBER>02797942
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>6355 TOPANGA CANYON BLVD
<STREET2>SUITE 510
<CITY>WOODLAND HILLS
<STATE>CA
<ZIP>91367
<PHONE>8188833956
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>6355 TOPANGA CANYON BLVD
<STREET2>SUITE 510
<CITY>WOODLAND HILLS
<STATE>CA
<ZIP>91367
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ADVANCED BIOTHERAPY CONCEPTS INC
<DATE-CHANGED>19990524
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>v84881dedef14a.htm
<DESCRIPTION>DEF 14A
<TEXT>
<HTML>
<HEAD>
<TITLE>Advance Biotherapy, Inc.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>SCHEDULE 14A INFORMATION</B></FONT>

<P align="center"><FONT size="2"><B>PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></FONT>

<P align="center"><FONT size="2"><B>(AMENDMENT NO.___)</B></FONT>

<P><FONT size="2">Filed by the Registrant &#091;X&#093;
</FONT>
<P><FONT size="2">Filed by a Party other than the Registrant &#091;&nbsp;&nbsp;&nbsp;&#093;
</FONT>
<P><FONT size="2">Check the appropriate box:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="2%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="95%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Preliminary Proxy Statement</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;X&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Definitive Proxy Statement</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Confidential, for Use of the Commission Only (as permitted by Rule&nbsp;14a-6(e)(2))</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Definitive Additional Materials</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
Soliciting Material Pursuant to sec. 240.14a-11(c) or sec. 240.14a-12</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P>&nbsp;</P>
<P>


<P align="center"><FONT size="4"><B>Advanced Biotherapy, Inc.</B></FONT>
<DIV align="center"><FONT size="2"><B>(Name of Registrant as Specified In Its Charter)</B></FONT></DIV>
<HR size="1" noshade>

<DIV align="center"><FONT size="2"><B>(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</B></FONT></DIV>

<P><FONT size="2">Payment of Filing Fee (Check the appropriate box):
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="93%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;X&#093;</FONT></TD>
        <TD align="left" valign="top" colspan="4"><FONT size="2">&nbsp;&nbsp;Fee not required.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>

<TD align="left" valign="top" colspan="4"><FONT size="2">&nbsp;&nbsp;Fee computed on table below per Exchange Act Rules&nbsp;14a-6(i)(1) and 0-11.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(1)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" colspan="2"><FONT size="2">Title of each class of securities to which transaction applies:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(2)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Aggregate number of securities to which transaction applies:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(3)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule&nbsp;0-11 (set forth the
amount on which the filing fee is calculated and state how it
was determined):<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(4)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Proposed maximum aggregate value of transaction:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(5)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Total fee paid:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" colspan="3"><FONT size="2">Fee paid previously with preliminary materials.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top" colspan="3"><FONT size="2">Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and identify the
filing for which the offsetting fee was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(1)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Amount Previously Paid:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(2)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Form, Schedule or Registration Statement No.:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(3)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Filing Party:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
(4)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Date Filed:<BR><BR>
        <HR size="1" noshade></FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2"></FONT>



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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="2"><B>ADVANCED BIOTHERAPY, INC.<BR>
6355 TOPANGA CANYON BOULEVARD, SUITE 510<BR>
WOODLAND HILLS, CALIFORNIA 91367</B></FONT>

<P align="center"><FONT size="2"><B>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS<BR>
TO BE HELD ON DECEMBER 12, 2002</B></FONT>

<P align="left"><FONT size="2"><B>TO THE STOCKHOLDERS OF ADVANCED BIOTHERAPY, INC.:</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Annual Meeting of Stockholders of Advanced Biotherapy, Inc., a
Delaware corporation (the &#147;Company&#148;), will be held on Thursday, December&nbsp;12,
2002, at 2:00 p.m. local time at the Woodland Hills Marriott, 21850 Oxnard
Street, Woodland Hills, California 91367, for the following purposes:
</FONT>
<P><FONT size="2">1.&nbsp;To elect nine (9)&nbsp;directors to hold office until the next Annual Meeting of
Stockholders and until their respective successors are elected and qualified,
or until death, resignation or removal.
</FONT>
<P><FONT size="2">2.&nbsp;To consider and vote upon an amendment to the Company&#146;s Certificate of
Incorporation to increase the authorized number of shares of Common Stock from
100,000,000 shares to 200,000,000 shares.
</FONT>
<P><FONT size="2">3.&nbsp;To transact such other business as may properly come before the meeting or
any adjournment thereof.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing items of business are more fully described in the Proxy
Statement accompanying this Notice.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has fixed the close of business on October&nbsp;18,
2002, as the record date for the determination of Stockholders entitled to
notice of and to vote at the Annual Meeting and at any adjournment or
postponement thereof. Only Stockholders of record as of the close of business
on such date are entitled to notice of and to vote in person or by proxy at the
Annual Meeting.
</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="50%"><FONT size="2">Sincerely,<BR>
<I>Edmond Buccellato</I><BR>
Edmond Buccellato<BR>
President and Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2">October&nbsp;25, 2002</FONT>

<P><FONT size="2">All Stockholders are invited to attend the Annual Meeting in person, but even
if you expect to be present at the Annual Meeting, sign, date and return the
enclosed proxy card as
promptly as possible in the postage-paid envelope provided. Returning a signed
proxy will not prevent you from attending the Meeting and voting in person if
you so desire.
</FONT>
<P align="center"><FONT size="2">&nbsp;
</FONT>

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<P><HR noshade><P>
<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">PROXY STATEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">OUTSTANDING SECURITIES AND VOTING RIGHTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">EXECUTIVE OFFICERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">PROPOSAL NO. 1 ELECTION OF DIRECTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">PROPOSAL NO. 2 INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMON STOCK</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">OTHER MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#008">AVAILABLE INFORMATION</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>






<P align="center"><FONT size="2"><B>ADVANCED BIOTHERAPY, INC.</B></FONT>

<!-- link1 "PROXY STATEMENT" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="center"><FONT size="2"><B>PROXY STATEMENT</B></FONT>

<P align="center"><FONT size="2"><B>October&nbsp;25, 2002</B></FONT>

<P align="left"><FONT size="2"><B>General</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The enclosed proxy is solicited by the Board of Directors of Advanced
Biotherapy, Inc., a Delaware corporation (the &#147;Company&#148;), for use at the Annual
Meeting of Stockholders to be held on Thursday, December&nbsp;12, 2002, at 2:00 p.m.
local time (the &#147;Annual Meeting&#148;), and at any adjournment or postponement
thereof, for the purposes set forth herein and in the accompanying Notice of
Annual Meeting. The Annual Meeting will be held at the Woodland Hills
Marriott, 21850 Oxnard Street, Woodland Hills, California 91367. This proxy
statement and accompanying proxy card are being mailed to the Stockholders of
the Company, on or about October&nbsp;25, 2002.
</FONT>
<!-- link1 "OUTSTANDING SECURITIES AND VOTING RIGHTS" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="center"><FONT size="2"><B>OUTSTANDING SECURITIES AND VOTING RIGHTS</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The only class of voting securities of the Company is its Common Stock,
par value $.001 per share (the &#147;Common Stock&#148;). Only holders of record of the
Company&#146;s Common Stock at the close of business on October&nbsp;18, 2002 (the
&#147;Record Date&#148;), will be entitled to notice of, and to vote at, the Annual
Meeting. As of September&nbsp;30, 2002, the Company had 43,584,701 shares of Common
Stock outstanding. Each share of Common Stock outstanding as of the Record
Date is entitled to one vote at the Annual Meeting.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the Record Date, there were approximately 3,800 beneficial owners,
according to information provided by American Stock Transfer &#038; Trust Co., the
stock transfer agent of the Company.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The nominees for election to the Board of Directors who receive the
greatest number of votes cast for the election of directors by the shares
present, in person or by proxy, shall be elected directors. Holders of Common
Stock are not allowed to cumulate their votes in the election of Directors,
and, therefore, the holders of more than 50% of the shares of Common Stock,
could, if they chose to do so, elect all of the directors of the Company.
Proposal 2 requires the affirmative vote of at least a majority of the shares
of Common Stock present, in person or by proxy, at the Annual Meeting and
entitled to vote at the Meeting.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A majority of the outstanding shares of Common Stock present, in person or
by proxy, constitutes a quorum for the transaction of business at the Annual
Meeting. Abstentions and broker nonvotes are counted as present for purposes
of determining the presence of a quorum at the Annual Meeting. Abstentions
will be counted toward the tabulations of votes cast on proposals presented to
the Stockholders and will have the same effect as negative votes, whereas
broker nonvotes will not be counted for purposes of determining whether a
proposal has been approved. In the election of directors, abstentions or
broker nonvotes have no effect on the outcome. Broker nonvotes occur when a
person holding shares through a bank or brokerage account does not provide
instructions as
to how his or her shares should be voted and the broker does not exercise
discretion to vote those shares.
</FONT>
<P align="left"><FONT size="2"><B>Proxies</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares for which proxy cards are properly executed and returned will be
voted at the Annual Meeting in accordance with the instructions specified
thereon. If the proxy does not specify how the shares represented thereby are
to be voted, the proxy will be voted &#147;FOR&#148; the election of each of the nominees
to the Board of Directors, unless the authority to vote for the election of
such director is withheld and, if no contrary instructions are given, the proxy
will be voted &#147;FOR&#148; the approval of Proposal 2 described in the accompanying
Notice and Proxy Statement. You may revoke or change your proxy at any time
before the Annual Meeting by filing with the Secretary of the Company at the
Company&#146;s offices at 6355 Topanga Canyon Boulevard, Suite&nbsp;510, Woodland Hills,
California 91367, a notice of revocation or another signed proxy with a later
date. You may also revoke your proxy by attending the Annual Meeting and
voting in person.
</FONT>
<P align="center"><FONT size="2">&nbsp;
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><B>Solicitation</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will bear the entire cost of solicitation of proxies including
preparation, assembly, printing and mailing of this proxy statement, the proxy
card and any additional information furnished to Stockholders. Copies of
solicitation materials will be furnished to banks, brokerage houses,
fiduciaries and custodians holding in their names shares of Common Stock
beneficially owned by others to forward to such beneficial owners. The Company
may reimburse persons representing beneficial owners of Common Stock for their
costs of forwarding solicitation materials to such beneficial owners. Original
solicitation of proxies by mail may be supplemented by telephone, telecopier or
personal solicitation by directors, officers or other employees of the Company.
No additional compensation will be paid to directors, officers or other
employees for such services.
</FONT>
<P align="left"><FONT size="2"><B>Deadline for Receipt of Stockholder Proposals</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proposals which Stockholders wish to be considered for inclusion in the
proxy statement and proxy card for the Company&#146;s 2003 Annual Meeting of
Stockholders must be received by the Secretary of the Company no later than
July&nbsp;31, 2003, and must comply with the requirements of Rule&nbsp;14a-8 under the
Securities Exchange Act of 1934, as amended.
</FONT>
<!-- link1 "VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF" -->
<DIV align="left"><A NAME="002"></A></DIV>
<P align="center"><FONT size="2"><B>VOTING SECURITIES AND PRINCIPAL HOLDERS THEREOF</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth information known to the Company with
respect to the beneficial ownership of the Company&#146;s Common Stock as of
September&nbsp;30, 2002, by (i)&nbsp;all persons who are beneficial owners of five
percent (5%) or more of the Company&#146;s Common Stock, (ii)&nbsp;each director and
nominee for director, (iii)&nbsp;the executive officers of the Company; and (iv)&nbsp;all
current directors and executive officers of the Company as a group. Except as
otherwise indicated, the Company believes that the beneficial owners of the
Common Stock listed below, based on
information furnished by such owners, have sole voting and investment power
with respect to such shares.
</FONT>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="30%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="14%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="23%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Number of Shares</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Including Options,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Warrants and</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Convertible</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Percentage</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Name and Address of Owner</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Securities</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="1"><B>Position at Company</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>of Shares (11)</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">Richard P. Kiphart<BR>
222 W. Adams St.<BR>
Chicago, IL 60606</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
12,136,830(1)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">21.78</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Boris V. Skurkovich, M.D.<BR>
18 Blaisdell Ave.<BR>
Pawtucket, RI 02860</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
6,832,020(2)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">15.67</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Leonard Millstein, Ph.D.<BR>
Ellen Millstein<BR>
1677 Calle Alta<BR>
La Jolla, CA 92037</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
4,276,809(3)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">9.81</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Simon Skurkovich, M.D.<BR>
802 Rollins Avenue<BR>
Rockville, MD 20852</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
2,401,770(4)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Chairman Emeritus,
Director, and
Director of
Research and
Development
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">5.40</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Edmond F. Buccellato<BR>
6355 Topanga Canyon<BR>
Boulevard, Suite&nbsp;510<BR>
Woodland Hills, CA 91367</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
2,270,051(5)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Chairman of the Board
President and Chief
Executive Officer
Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">5.17</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">2
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="30%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="14%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="23%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Number of Shares</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Including Options,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Warrants and</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Convertible</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Percentage</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Name and Address of Owner</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Securities</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="1"><B>Position at Company</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>of Shares (11)</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Alexander L. Cappello<BR>
1299 Ocean Avenue<BR>
Suite&nbsp;306<BR>
Santa Monica, CA 90401</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
2,036,180(6)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">4.46</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Lawrence Loomis<BR>
9110 Red Branch Road<BR>
Columbia, MD 21045</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
1,535,000(7)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">3.52</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">Thomas J. Pernice<BR>
847 Chautauqua Boulevard<BR>
Pacific Palisades, CA 90272</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
1,318,599(8)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Treasurer and
Secretary, Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">2.94</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">John M. Bendheim<BR>
2001 S. Barrington Street<BR>
Suite&nbsp;100<BR>
Los Angeles, CA 90025</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
229,892(9)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Director
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">*</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">William M. Finkelstein<BR>
6355 Topanga Canyon Boulevard,<BR>
Suite&nbsp;510<BR>
Woodland Hills, CA 91367</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
100,634(10)
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">Chief Financial<BR>
Officer
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">*</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">All officers and directors as a
group(11)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
33,049,151
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">54.5</FONT></TD>
        <TD nowrap valign="top"><FONT size="2">%</FONT></TD>
</TR>
</TABLE>
<P>
<HR size="1" width="18%" align="left" noshade>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of Richard P. Kiphart include the right to acquire
2,043,396 shares, upon the conversion of $510,849 principal amount of the
Company&#146;s 2002 Subordinated Convertible Pay-In-Kind Notes due September&nbsp;30,
2004 (&#147;2002 Convertible Notes Due 2004&#148;) and the right to acquire 10,093,424
shares, upon the conversion of $2,523,356 principal amount of the Company&#146;s
2002 Subordinated Convertible Pay-In-Kind Notes Due June&nbsp;1, 2006 (&#147;2002
Convertible Notes Due 2006&#148;).</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of Boris Skurkovich include shares held in his name
(2,315,020), and shares held in the name of Carol Marjorie Dorros (2,235,000)
and Samuel Aaron Skurkovich (2,272,000) and options to purchase up to 10,000
shares of Common Stock at an exercise price of $0.25 per share.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Leonard and Ellen Millstein are husband and wife. Shares held in their
names comprise shares held in his name (615,100), shares held in her name
(2,763,359); shares held in the name of William Millstein (888,350 shares), and
options to purchase up to 10,000 shares of Common Stock at an exercise price of
$0.25 per share. Dr.&nbsp;Millstein and Mrs.&nbsp;Millstein disclaim beneficial ownership
of the shares held in the other&#146;s name and disclaim that they are part of any
&#147;group&#148; for SEC purposes.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(4)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of Simon Skurkovich include options to purchase up
to 300,000 shares of Common Stock at an exercise price of $0.10 per share,
options to purchase up to 623,000 shares of Common Stock at an exercise price
of $0.10 per share, and options to purchase up to 10,000 shares of Common
Stock at an exercise price of $0.25 per share. Simon Skurkovich is the father
of Boris Skurkovich and Ellen Millstein but disclaims beneficial ownership of
the shares attributed to both of them and disclaims that the three of them are
part of a &#147;group&#148; for SEC purposes.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(5)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of Edmond F. Buccellato comprise shares held in his
name (400,000), and shares held in the names of Edmond F. and Leana J.
Buccellato Living Trust (1,331,666 shares), Amy Buccellato (58,400 shares),
Matthew Buccellato (60,490 shares) and Buccellato &#038; Finkelstein, Inc. (88,334).
Includes options to purchase up to 105,543 shares of Common Stock at an
exercise price of $0.10 per share, options to purchase up to 50,000 shares of
Common Stock at an exercise price of $0.10 per share, options to purchase up to
50,000 shares of Common Stock at an exercise price of $0.20 per share; options
to purchase up to 10,000 shares of Common Stock at an exercise price of $0.25
per share, and the right to acquire 115,608 shares of Common Stock upon the
conversion of $28,902 principal amount of the Company&#146;s 2002 Convertible Notes
Due 2004.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(6)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of Alexander L. Cappello include warrants held in
his name to purchase 100,000 shares of Common Stock at an exercise price of
$0.25 per share, warrants assigned by
Cappello Capital Corp. (&#147;CCC&#148;) to the Alexander L. and Linda Cappello Family
Trust (&#147;Family Trust&#148;) to purchase 1,598,216 shares of Common</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">3
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Stock at an
exercise price of $0.15 per share, and options to purchase up to 10,000 shares
of Common Stock at an exercise price of $0.25 per share. Also includes the
right of the Family Trust to acquire 120,268 shares of Common Stock upon
conversion of Company&#146;s Convertible Subordinated Debt due September&nbsp;30, 2004
(&#147;Convertible Debt&#148;), and the right to acquire 207,696 shares of Common Stock
upon exercise of an option to purchase up to $51,924 principal amount of
Convertible Debt at par and the conversion of such Convertible Debt.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(7)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Includes shares held in the names of Lawrence Loomis (1,325,000 shares) and
New Horizons Diagnostics, Inc. (200,000 shares), and options to purchase up to
10,000 shares of Common Stock at an exercise price of $0.25 per share.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(8)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of Thomas J. Pernice include warrants to purchase
100,000 shares of Common Stock at an exercise price of $0.25 per share,
warrants assigned by CCC to purchase 1,042,443 shares of Common Stock at an
exercise price of $0.15 per share, and options to purchase up to 10,000 shares
of Common Stock at an exercise price of $0.25 per share. Also, includes the
right to acquire 166,156 shares of Common Stock upon exercise of an option to
purchase up to $41,539 principal amount of Convertible Debt at par and the
conversion of such Convertible Debt, which option CCC assigned to him.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(9)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of John M. Bendheim comprise warrants to purchase
100,000 shares of Common Stock at an exercise price of $0.25 per share, and the
right to acquire 119,892 shares of Common Stock upon conversion of Convertible
Debt held by a trust for the benefit of his minor child, and options to
purchase up to 10,000 shares of Common Stock at an exercise price of $0.25 per
share.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(10)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Shares held in the name of William M. Finkelstein include shares held in
the name of Buccellato &#038; Finkelstein, Inc. (88,334); however, Mr.&nbsp;Buccellato
presently retains voting power and investment power over such shares.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(11)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Includes 2,940,659 shares of Common Stock underlying warrants, 1,208,543
shares of Common Stock underlying options and 12,866,440 shares of Common Stock
underlying outstanding Convertible Debt, 2002 Convertible Notes Due 2004 and
2002 Convertible Notes Due 2006.</FONT></TD>
</TR>
</TABLE>
<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">*</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Represents less than 1% of the outstanding shares of Company Common Stock.</FONT></TD>
</TR>
</TABLE>
<!-- link1 "EXECUTIVE OFFICERS" -->
<DIV align="left"><A NAME="003"></A></DIV>
<P align="center"><FONT size="2"><B>EXECUTIVE OFFICERS</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Proxy Statement, the following individuals serve as
executive officers of the Company:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Edmond F. Buccellato, </B>57. Since October&nbsp;8, 2002, Mr.&nbsp;Buccellato has
served as Chairman of the Board; and since April, 2001, he also has served as
President and Chief Executive Officer. Mr.&nbsp;Buccellato served as President and
Chief Operating Officer of the Company from September&nbsp;1, 2000 to December&nbsp;12,
2000, and he served as President and Chief Executive from 1995 to August&nbsp;31,
2000. He has served as a member of the Board of Directors since 1995. He was
co-founder, member of the Board of Directors and Vice President of Finance of
Phase Medical, Inc., an infusion therapy company sold to Becton Dickinson in
1994. He was also co-founder, member of the Board of Directors and Vice
President of Finance of Synergistic Systems, Inc., a company that became the
largest medical billing company in the western United States. He also is
co-founder and member of the Board of Directors of Polymer Safety, LLC, a
manufacturer of synthetic medical and industrial examination gloves and
co-founder and member of the Board of Directors of Physicians&#146; Choice LLC, a
medical billing company. He is a shareholder of Buccellato &#038; Finkelstein, Inc.,
a public accounting firm. Mr.&nbsp;Buccellato received his undergraduate degree
from California State University at San Diego, and his graduate degree from the
University of Southern California.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Simon Skurkovich, M.D.</B>, 79. Since April, 2001, Dr.&nbsp;Skurkovich has served
as Director of Research and Development. From 1985 until September 2000, Dr.
Skurkovich served as Chairman of the Board of Directors. He has been granted
five patents in Russia, and eight in the United States. He is the creator of
immune preparations from human blood against antibiotic resistant bacteria that
saved thousands of lives in the Soviet Union and Eastern Europe. In Russia, he
was professor and Chief of the Immunology Laboratory of the Institute of
Hematology and Blood Transfusion and was awarded gold and silver medals for his
scientific discoveries. His laboratory also was awarded the nation&#146;s highest
honor, the Lenin Prize, for his patented work. Dr.&nbsp;Skurkovich received an M.D.,
Ph.D. and a doctorate in medical sciences (D.Sc.) from Pirogov State Medical
Institute in Moscow. He has written more than 200 articles for scientific
publications.
</FONT>
<P align="center"><FONT size="2">4
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>William M. Finkelstein, </B>43. Since April, 2001, Mr.&nbsp;Finkelstein has served
as Chief Financial Officer. For the past eight years, he has been a
shareholder of Buccellato &#038; Finkelstein, Inc., a public accountancy firm. Mr.
Finkelstein received his undergraduate degree in Accounting from the University
of Houston in 1982 and became licensed as a certified public accountant in
1984. He is a member of the American Institute of Certified Public
Accountants, and the California Society of Certified Public Accountants.
</FONT>
<!-- link1 "COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS" -->
<DIV align="left"><A NAME="004"></A></DIV>
<P align="center"><FONT size="2"><B>COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the compensation paid by the Company since
January&nbsp;1, 1999 through December&nbsp;31, 2001, for the Chief Executive Officer of
the Company and the Company&#146;s other executive officers who were compensated
during the year ended December&nbsp;31, 2001 (the &#147;Named Executive Officers&#148;):
</FONT>
<P align="center"><FONT size="2"><B>Summary Compensation Table</B></FONT>

<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="24%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="2%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Restricted</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Other Annual</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Stock</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Securities</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>All Other</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Name and Principal</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Salary</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Bonus</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Compensation</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Award(s)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Underlying</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>LTIP Payouts</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Compensation</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Position</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Year</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Options/SARs(#)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($)</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="2">Edmond F. Buccellato</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2001</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">84,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">*</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,150</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD nowrap><FONT size="2">Chief Executive Officer&nbsp;(1)(4)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">72,500</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1999</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">75,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD><FONT size="2">Paul J. Marangos</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2001</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">35,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">10,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">7,800</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">Chief Executive Officer&nbsp;(2)(5)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">40,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">25,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD><FONT size="2">Simon Skurkovich</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2001</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">60,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">*</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">2,150</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">Chairman Emeritus,</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">30,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">Director of Research</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">1999</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">100,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>


<TR valign="bottom">
        <TD><FONT size="2">&#038; Development (3)(4)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>









</TABLE>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">*</FONT></TD>
        <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD width="98%"><FONT size="2">- See &#147;Compensation of Directors&#148; below</FONT></TD>
</TR>
</TABLE>
<P>
<HR size="1" width="18%" align="left" noshade>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Mr.&nbsp;Buccellato was the Chief Executive Officer of the Company prior to the
hiring of Dr.&nbsp;Marangos. Since April, 2001, Mr.&nbsp;Buccellato has served as
President and Chief Executive Officer of the Company.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Dr.&nbsp;Marangos joined the Company in August 2000 at an annual salary of
$120,000. In addition, he was paid a signing bonus of $25,000. In April, 2001,
Dr.&nbsp;Marangos resigned as an officer and employee of the Company.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Dr.&nbsp;Skurkovich also served as the Chairman of the Board prior to August,
2000.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(4)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">During January, 2002, the Company issued stock options to purchase 10,000
shares of the Company&#146;s Common Stock at $0.25 per share to each director for
services rendered during the year ended December&nbsp;31, 2001. The fair value of
the stock options was estimated at $2,150 using the Black Scholes option price
method.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(5)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">During May, 2001, the Company issued to Dr.&nbsp;Marangos warrants to purchase
100,000 shares of the Company&#146;s Common Stock at $0.25 per share for his service
on the Board of Directors. The warrants expire in May, 2005. The fair value
of the warrants was estimated at $7,800 using the Black Scholes option price
method.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the first six months of 2002, the salaries of Edmond Buccellato and
Dr.&nbsp;Simon Skurkovich were $120,000 and $80,000, respectively, and those
salaries were adjusted to $180,000 each effective July&nbsp;1, 2002.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal year 2001, William M. Finkelstein did not receive any
compensation directly from the Company, although the Company paid to Buccellato
&#038; Finkelstein, Inc., the sum of $10,200 for accounting services and tax
preparation. Mr.&nbsp;Finkelstein and Mr.&nbsp;Buccellato are shareholders of Buccellato
&#038; Finkelstein, Inc.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no retirement, pension, or profit sharing plans for the benefit
of the Company&#146;s officers and directors.
</FONT>
<P align="center"><FONT size="2">5
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<P align="left"><FONT size="2"><B>Option/SAR Grants to Executive Officers</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During January, 2002, the Company issued stock options to purchase 10,000
shares of the Company&#146;s Common Stock at $0.25 per share to each director,
including Edmond F. Buccellato and Dr.&nbsp;Simon Skurkovich as described in the
Summary Compensation Table above, for services rendered during the year ended
December&nbsp;31, 2001.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During May, 2001, the Company issued to Dr.&nbsp;Marangos warrants to purchase
100,000 shares of the Company&#146;s Common Stock at $0.25 per share for his service
on the Board of Directors as described in the Summary Compensation Table above.
</FONT>
<P align="center"><FONT size="2"><B>AGGREGATED OPTIONS/SAR EXERCISES IN FISCAL YEAR<BR>
ENDED DECEMBER 31, 2001 AND DECEMBER 31, 2001<BR>
OPTION/SAR VALUES</B></FONT>

<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="35%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="7%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="13%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="11%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Value of Unexercised</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Number of Unexercised</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>In-The-Money</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Securities Underlying</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Options/SARs At FY-End</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Shares Acquired</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Options/SARs at FY-End(#)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>($) Exercisable/</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Name</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>on Exercise (#)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Value Realized ($)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Exercisable/ Unexercisable(1)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Unexercisable(2)</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="2">Simon Skurkovich</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="left"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">300,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">84,000.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">623,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">174,400.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">10,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">1,300.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD><FONT size="2">Edmond Buccellato</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="left"><FONT size="2">0</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">105,543</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">29,552.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">50,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">14,000.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">50,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">9,000.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">10,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">1,300.00</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">All options were exercisable as of December&nbsp;31, 2001</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Determined on the basis of the share closing price of $0.38 on December
28, 2001</FONT></TD>
</TR>
</TABLE>

<P><FONT size="2"><B>Equity Compensation Plan Information As of December&nbsp;31, 2001</B></FONT>

<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="62%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Number of securities</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>remaining available for</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Number of securities</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>future issuance under</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>to be issued upon</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Weighted-average exercise</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>equity compensation</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>exercise of</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>price of outstanding</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>plans (excluding</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>outstanding options,</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>options, warrants</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>securities reflected in</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>warrants and rights</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>and rights</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>column (a)</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>(a)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>(b)</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>(c)</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="2">Equity compensation plans approved by
security holders</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">350,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="left"><FONT size="2">0.25</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">3,900,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><FONT size="2">Equity compensation plans not approved by
security holders</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">9,200,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="left"><FONT size="2">0.05</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">800,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2"><B>Equity Compensation and Long-Term Incentive Plan Awards</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company adopted a Stock Bonus Plan (&#147;Stock Bonus Plan&#148;) in January
2000 and reserved 10,000,000 shares of Common Stock to be issued thereunder, of
which 9,200,000 shares have been granted as of September&nbsp;30, 2002. In December
2000, the Board of Directors approved the Company&#146;s 2000 Omnibus Equity
Incentive Plan (&#147;OEI Plan&#148;) and reserved 4,000,000 shares of Common Stock to be
issued thereunder to employees, consultants and directors, subject to annual
increases equal to the lesser of 2.5% of the then outstanding shares of Common
Stock or 250,000 shares. As of September&nbsp;30, 2002, no shares have been granted
under the OEI Plan. As of September&nbsp;30, 2002, options to purchase
approximately 440,000 shares have been granted under the OEI Plan. Prior to
January, 2001, the Company granted other stock options and warrants to purchase
Company Common Stock which were not granted pursuant to any equity compensation
plan.
</FONT>
<P align="left"><FONT size="2"><B>Compensation of Directors</B></FONT>


<P align="center"><FONT size="2">6
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors did not receive any compensation for serving as members of the
Board of Directors for the year ended December&nbsp;31, 2001, except as provided
below. The Board has not implemented a plan to award options or shares to any
Directors, except pursuant to the Stock Bonus Plan and the OEI Plan. All
current directors who served during 2001 (total of 8) were awarded stock
options in January, 2002, for 10,000 shares each (options for a total of 80,000
shares) at an exercise price of $0.25 per share, exercisable for ten years.
The aggregate fair value of the options granted to the directors was estimated
at $17,200 using the Black Scholes option price method, of which $13,600 was
recorded as director fees for fiscal year 2001, and the balance will be
recorded as director fees in 2002.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2001, the Company granted warrants to each of John M. Bendheim,
Alexander M. Cappello and Thomas J. Pernice to purchase 100,000 shares of
Common Stock at an exercise price of $0.25 per share for service on the Board
of Directors. The warrants expire between May, 2005, and April, 2006. The
aggregate fair value of the warrants was estimated at $15,480 using the Black
Scholes option price method. There are no other contractual arrangements with
any member of the Board of Directors, except as set forth in this Proxy
Statement. See &#147;Certain Relationships and Related Transactions&#148; below.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended December&nbsp;31, 2001, the Board of Directors approved
the extension for one-year of the then exercise period of certain stock options
previously granted to certain former employees, consultants and strategic
partners as well as the following directors:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="95%">
<TR valign="bottom">
        <TD width="40%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="4%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Number</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Original</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>New Expiration</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Optionee</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>of Options</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Grant Date</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Exercise Price</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Expiration Date</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Date</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Boris Skurkovich, M.D.</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">150,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/91</FONT></TD>
        <TD nowrap><FONT size="2">         </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">.20</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/01</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/02</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lawrence Loomis</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">175,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/91</FONT></TD>
        <TD nowrap><FONT size="2">         </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">.20</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/01</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/02</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Leonard Millstein, Ph.D.</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">125,000</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/91</FONT></TD>
        <TD nowrap><FONT size="2">         </FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">.20</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/01</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">2/25/02</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All the stock options, which had been extended as described above, expired
on February&nbsp;25, 2002, without having been exercised.
</FONT>
<P align="left"><FONT size="2"><B>Board Committees and Meetings</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the year ended December&nbsp;31, 2001, the Board of Directors held 7
meetings (including special meetings), and each incumbent director attended at
least 75% of such meetings. During the year ended December&nbsp;31, 2001, the Audit
Committee held one meeting and the Compensation Committee held one meeting.
Board members receive no compensation for attendance at meetings except
reimbursement of expenses. The Board at large serves as the Nominating
Committee.
</FONT>
<P align="left"><FONT size="2"><B>Audit Committee</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has adopted a new written charter (a copy of which
is attached as Appendix&nbsp;A hereto) for the Audit Committee, updated to comply
with the recently enacted Sarbanes-Oxley Act.
</FONT>
<P align="left"><FONT size="2"><B>Report of the Audit Committee</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As more fully described in its charter, the purpose of the Audit Committee
is to assist the Board of Directors in its general oversight of the Company&#146;s
financial reporting, internal controls and audit functions.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee members are not professional accountants or auditors,
and their functions are not intended to duplicate or to certify the activities
of management and the Company&#146;s independent auditor. The Committee serves a
board-level oversight role, in which it provides advice, counsel and direction
to management and the auditors on the basis of information it receives,
discussions with management and the auditors and the experience of the
Committee&#146;s members in business, financial and accounting matters. Management
represented to the Committee that the Company&#146;s consolidated financial
statements were prepared in accordance with generally accepted accounting
procedures. In this connection, the Audit Committee has done the following:
</FONT>
<P align="center"><FONT size="2">7
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reviewed and discussed the Company&#146;s audited financial statements for
the year ended December&nbsp;31, 2001, with the Company&#146;s management and the
independent auditors;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discussed with Williams &#038; Webster, P.S., the Company&#146;s independent
accountants, the matters required to be discussed by Statement on Auditing
Standards No.&nbsp;61 (Codification of Statements on Auditing Standards), as
amended; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Received written disclosure regarding independence from Williams &#038;
Webster, P.S. as required by Independent Standards Board Standard No.&nbsp;1
(Independence Discussions with Audit Committees) and discussed with Williams &#038;
Webster, P.S. its independence.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the foregoing, the Audit Committee recommended to the Board of
Directors that the audited financial statements be included in the Company&#146;s
Annual Report on Form&nbsp;10-KSB for the year ended December&nbsp;31, 2001 (&#147;Annual
Report&#148;).
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the filing of the Company&#146;s Annual Report, Alexander L. Cappello,
John M. Bendheim and Thomas Pernice served on the Company&#146;s Audit Committee.
Although the Company&#146;s securities are not quoted on Nasdaq, the Company has
elected to apply the Nasdaq rules regarding the definition of &#147;independence&#148;
for the members of the Audit Committee who recommended that the audited
financial statements be included in the Company&#146;s Annual Report. Under the
Nasdaq rules, director John M. Bendheim qualified as &#147;independent.&#148; Directors
Alexander L. Cappello and Thomas J. Pernice would not likely be deemed
&#147;independent,&#148; because of the aggregate value of cash fees, warrants and
options of the Company they received in fiscal years 2000 and 2001 by
assignment from Cappello Capital Corp., an investment banking firm retained by
the Company from January, 2000, through January, 2002, which received such
fees, warrants and options in connection with the Company&#146;s
private placement of Convertible Debt in 2000 and other services. The Board of
Directors determined to appoint Alexander L. Cappello and Thomas J. Pernice to
the Audit Committee in the best interests of the Company and its Stockholders
due to their respective management and financial expertise involving
publicly-held companies, among other expertise.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date of this Proxy Statement, the Audit Committee consists of
Alexander L. Cappello, John M. Bendheim and Richard Kiphart, a majority of whom
qualify as &#147;independent&#148; under the Nasdaq rules.
</FONT>
<P align="left"><FONT size="2"><B>Audit and Non-Audit Fees</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal year ended December&nbsp;31, 2001, fees for services provided by
Williams &#038; Webster, P.S. were as follows:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;<I>Audit Fees</I>. Audit fees billed by Williams &#038; Webster, P.S. with respect
to the fiscal year 2001 audit and quarterly reviews were $24,823.00.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;<I>Financial Information Systems Design Implementation Fees</I>. No services
were performed by, or fees incurred to, Williams &#038; Webster, P.S. in connection
with financial information design and implementation projects for fiscal year
2001.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;<I>All Other Fees</I>. All other fees billed by Williams &#038; Webster, P.S. with
respect to fiscal year 2001 were $ 1,995.00.
</FONT>
<P align="left"><FONT size="2"><B>Certain Relationships and Related Transactions</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is currently indebted to Simon Skurkovich, M.D., the Company&#146;s
Chairman Emeritus of the Board of Directors, and Director of Research and
Development in the amount of $127,631.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During fiscal year 2001, the Company paid $8,600 to Boris Skurkovich,
M.D., for consulting services, and paid $8,725 to New Horizons Diagnostics,
Inc., of which Director Lawrence Loomis is the majority shareholder, for
productions of monoclonal antibodies. During the current 2002 fiscal year, the
Company paid a $60,000 fee
</FONT>
<P align="center"><FONT size="2">8
</FONT>

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<P><FONT size="2">in cash to Lawrence Loomis in connection with the
placement of $3,000,000 principal amount of the Company&#146;s Convertible Notes.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company receives the use of approximately 3,500 square feet of
commercial building space on a rent-free basis from a company owned by Lawrence
Loomis. The Company receives use of office space on a rent-free basis from
Buccellato &#038; Finkelstein, Inc., of which Edmond F. Buccellato is a shareholder.
During fiscal year 2001, the Company paid to Buccellato &#038; Finkelstein, Inc.,
the sum of $10,200 for accounting services and tax preparation.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alexander L. Cappello is the brother of Gerard K. Cappello, the sole
shareholder, president and chief executive officer of Cappello Capital Corp.
which was retained by the Company in January,
2000 to render financial advisory and investment banking services and thereupon
was granted warrants to purchase 4,685,135 shares of Common Stock at $0.15 per
share. Such warrants have been assigned to certain individuals, including
Alexander L. Cappello. Cappello Capital Corp. raised $1,510,500 in convertible
subordinated debt for the Company, was paid $124,981 in fees and expenses
related thereto, and was granted an option to purchase $151,050 principal
amount of Convertible Debt at par, which option has been assigned to certain
individuals including Alexander L. Cappello. Thomas J. Pernice was formerly a
managing director of Cappello Group, Inc., a merchant banking firm, which is
owned by Alexander L. Cappello. Mr.&nbsp;Pernice was assigned a portion of the
foregoing warrants and options.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John M. Bendheim, Edmond F. Buccellato and Alexander L. Cappello each
beneficially own the Company&#146;s Convertible Debt or Convertible Notes, upon
which the Company is indebted to such individuals.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2002, The following directors and officers were
indebted to the Company in the principal amount, together with accrued
interest, set forth opposite his name, respectively, in connection with the
grant of shares of Common Stock pursuant to the Company&#146;s Stock Bonus Plan:
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="75%">
<TR valign="bottom">
        <TD width="35%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="9%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="50%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Edmond F. Buccellato:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">88,259</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Boris Skurkovich, M.D.:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">88,259</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lawrence Loomis:</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right"><FONT size="2">$</FONT></TD>
        <TD align="right"><FONT size="2">58,839</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The same three individuals each issued a promissory note dated as of
January&nbsp;11, 2000, in favor of the Company evidencing such obligations, which
notes mature on December&nbsp;31, 2002, and bear interest at 6.5% per annum.
</FONT>
<P align="left"><FONT size="2"><B>Family Relationships</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The only relationship between any directors or officers known to the
Company is that Simon Skurkovich is father to Boris Skurkovich, and
father-in-law to Leonard Millstein.
</FONT>
<P align="left"><FONT size="2"><B>Involvement In Certain Legal Proceedings</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the past five years, to the knowledge of the Company, no present or
former director, executive officer or person nominated to become a director or
an executive officer of the Company has been the subject matter of any legal
proceedings, including bankruptcy, criminal proceedings, or civil proceedings.
Further, no legal proceedings are known to be contemplated by governmental
authorities against any director, executive officer and person nominated to
become a director.
</FONT>
<P align="left"><FONT size="2"><B>Interests of Certain Persons In Matters to Be Acted Upon</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No director or officer, past or present, or any associate or affiliate of
such persons, or any person on behalf of whom this solicitation is made, has
any interest, direct or indirect, in any matter
to be acted upon at the Annual Meeting, except insofar as disclosed in this
Proxy Statement and the materials incorporated by reference herein.
</FONT>
<P align="left"><FONT size="2"><B>Compliance with Section&nbsp;16(a) of the Exchange Act</B></FONT>


<P align="center"><FONT size="2">9
</FONT>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>


<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the grant of options to purchase 10,000 shares of
Company Common Stock, each director failed to timely file a report on Form&nbsp;4.
In connection with the receipt of one or more gifts of Company Common Stock,
Dr.&nbsp;Boris Skurkovich and Leonard Millstein failed to timely file a report on
Form&nbsp;5. A Form&nbsp;5 was required to be filed by Dr.&nbsp;Simon Skurkovich relating to
his gift of shares to various individuals. All directors have since filed a
report on Form&nbsp;4, except Lawrence Loomis, reflecting the foregoing
transactions, as applicable.
</FONT>
<!-- link1 "PROPOSAL NO. 1 ELECTION OF DIRECTORS" -->
<DIV align="left"><A NAME="005"></A></DIV>
<P align="center"><FONT size="2"><B>PROPOSAL NO. 1<BR>
ELECTION OF DIRECTORS</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the Company&#146;s Bylaws for the purpose of the election,
the Board of Directors has fixed the number of directors constituting the Board
at nine (9)&nbsp;as of the date of the Annual Meeting. There are currently nine (9)
Directors. The Board of Directors has proposed that the following nine (9)
nominees be elected at the Annual Meeting, each of whom will hold office until
his successor shall have been elected and qualified: Simon Skurkovich, M.D.,
Edmond Buccellato, Boris Skurkovich, M.D., Lawrence Loomis, Leonard Millstein,
Ph.D., Alexander L. Cappello, John M. Bendheim, Thomas J. Pernice and Richard
Kiphart. Unless otherwise instructed, it is the intention of the persons named
as proxies on the Company proxy card to vote shares represented by properly
executed proxies for the election of such nominees. Although the Board of
Directors anticipates that the nine (9)&nbsp;nominees will be available to serve as
directors of the Company, if any of them should be unwilling or unable to
serve, it is intended that the proxies will be voted for the election of such
substitute nominee or nominees as may be designated by the Board of Directors.
Each person nominated for election has agreed to serve if elected.
</FONT>
<P align="left"><FONT size="2"><B>Nominees for the Board of Directors</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the current directors of the Company is listed below:
</FONT>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="30%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="43%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="15%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><FONT size="1"><B>Name</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center" colspan="3"><FONT size="1"><B>Age</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="1"><B>Position Held</B></FONT></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="1"><B>Director Since</B></FONT></TD>
</TR>
<TR valign="bottom">
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD colspan="3"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><HR size="1" noshade></TD>
        <TD><FONT size="1">&nbsp;</FONT></TD>
        <TD nowrap align="center"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Simon Skurkovich, M.D.</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
79
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Chairman Emeritus, Director, and
Director of Research and Development
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">November, 1985</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Edmond F. Buccellato</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
57
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Chairman of the Board, President and
Chief Executive Officer, Director (3)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">November, 1995</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Thomas J. Pernice</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
40
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Treasurer and Secretary, Director (2)(3)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">April, 2001</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Alexander L. Cappello</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
46
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Director (1)(3)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">May, 2000</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Lawrence Loomis</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
60
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Director (2)(3)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">December, 1986</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Leonard Millstein, Ph.D.</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
60
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Director (2)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">December, 1986</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Boris Skurkovich, M.D.</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
47
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Director (2)(3)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">December, 1986</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">John M. Bendheim</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
49
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Director (1)(3)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">June, 2000</FONT></DIV></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Richard P. Kiphart</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="right" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><FONT size="2">
61
</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">Director (1)(2)
</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">June, 2002</FONT></DIV></TD>
</TR>
</TABLE>
<P>
<HR size="1" width="18%" align="left" noshade>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(1)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Member of the Audit Committee of the Board of Directors.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(2)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Member of the Compensation Committee of the Board of Directors.</FONT></TD>
</TR>
<TR><TD><TR><TD><TR><TD><TR><TD>
<TR valign="top">
      <TD width="1%" align="left" nowrap><FONT size="2">(3)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Member of the Executive Committee of the Board of Directors.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set forth below is a brief biography of each nominee for the Board of
Directors.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>John M. Bendheim </B>- Since June 2000, Mr.&nbsp;Bendheim has served as a member of
the Board of Directors. Mr.&nbsp;Bendheim is Chairman of the Cedars-Sinai Medical
Center Board of Governors in Los Angeles, California and President of Bendheim
Enterprises, Inc., a real estate investment holding company. He received his
B.S. degree in Business Administration in 1975 and his M.B.A. in 1976 from the
University of Southern California.
</FONT>
<P align="center"><FONT size="2">10
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Edmond F. Buccellato </B>- Since October, 2002, Mr.&nbsp;Buccellato has served as
Chairman of the Board, and since April, 2001, he has served as President and
Chief Executive Officer. Mr.&nbsp;Buccellato served as President and Chief
Operating Officer of the Company from September&nbsp;1, 2000 to December&nbsp;12, 2000,
and he served as Chief Executive Officer from 1995 to August&nbsp;31, 2000. He has
served as a member of the Board of Directors since 1995. He was co-founder,
member of the Board of Directors and Vice President of Finance of Phase
Medical, Inc., an infusion therapy company sold to Becton Dickinson in 1994. He
was also co-founder, member of the Board of Directors and Vice President of
Finance of Synergistic Systems, Inc., a company that became the largest medical
billing company in the western United States. He also is co-founder and member
of the Board of Directors of Polymer Safety, LLC, a manufacturer of synthetic
medical and industrial examination gloves and co-founder and member of the
Board of Directors of Physicians&#146; Choice LLC, a medical billing company. He is
a shareholder of Buccellato &#038; Finkelstein, Inc., a public accountancy firm.
Mr.&nbsp;Buccellato received his undergraduate degree from California State
University at San Diego, and his graduate degree from the University of
Southern California.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Alexander L. Cappello </B>- Since May, 2000, Mr.&nbsp;Cappello has served as a
member of the Board of Directors. Mr.&nbsp;Cappello also served as Chairman of the
Board from April, 2001, through October, 2002. Mr.&nbsp;Cappello is Chairman and
Chief Executive Officer of Cappello Group, Inc., a merchant banking firm,
facilitating equity and project financing since 1975. Currently, he is a Member
of the Board of Directors of the following: Cappello Group, Inc., RAND
Corporation (Center for Middle East Public Policy), CytRx Corporation (NASDAQ),
Independent Colleges of Southern California (ICSC), USC Marshall School of
Business Entrepreneur Advisory Council, USC Advancement Council, USC Marshall
School of Business, Chairman of Catholic Big Brothers of Los Angeles, Chairman
of the International Board of the Young Presidents&#146; Organization for 2003-2004.
He received his B.S. Degree in finance (Order of the Palm) from the University
of Southern California in 1977.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Formerly, Mr.&nbsp;Cappello was a Member of the Board of Directors of the
following; Koo Koo Roo, Inc. (NASDAQ), Arcus Data Security, Inc. (NASDAQ),
Maritime Bank of California (OTC), Executive Publications, Inc., and The
Joffrey Foundation.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Richard P. Kiphart </B>- Since June, 2002, Mr.&nbsp;Kiphart has served as a member
of the Board of Directors. Mr.&nbsp;Kiphart is the Head of Corporate Finance for
the investment firm of William Blair &#038; Company, L.L.C. Mr.&nbsp;Kiphart has been
with William Blair for over 36&nbsp;years. Mr.&nbsp;Kiphart received his B.A. from
Dartmouth College and his M.B.A. from Harvard Business School.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Lawrence Loomis </B>- Since 1986, Mr.&nbsp;Loomis has served as a member of the
Board of Directors. Mr.&nbsp;Loomis is President and majority shareholder of New
Horizons Diagnostics, Inc., a company that develops bacteriological screening
methods, monoclonal antibodies for detection of various infectious disease
agents, and rapid bacterial and viral assay kits. Prior to founding New
Horizons Diagnostics, Inc. in 1980, Mr.&nbsp;Loomis was in charge of the Immunology
Department for BBL, a division of Becton Dickinson. Mr.&nbsp;Loomis received his
undergraduate degree in chemistry from New York University and his graduate
degree in Chemistry from City University.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Leonard Millstein, Ph.D. </B>- Since 1986, Dr.&nbsp;Millstein has served as a
member of the Board of Directors. Dr.&nbsp;Millstein received his MSCE and Ph.D. in
civil engineering from Moscow State Construction University in 1964 and 1974,
respectively. After immigrating to the United States in 1978, he held teaching
positions at Howard University in Washington D.C. and Johns Hopkins University
in Baltimore, Maryland. He has over 200 publications and is a member of the
American Concrete Institute and American Society of Civil Engineers. From 1981
to the present, he has been a CEO of Radcon Products, a company involved in
manufacturing of proprietary concrete sealants. From 1990 until the present, he
has been a Chairman of the Board of TTLTIC, a private consulting company.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Thomas J. Pernice </B>- Since April, 2001, Mr.&nbsp;Pernice has served as the
Treasurer and Secretary of the Company and as a member of the Board of
Directors. Mr.&nbsp;Pernice is President of Modena Holding Corporation, a financial
consulting services company and most recently, was also a managing director of
Cappello Group, Inc., a merchant banking firm, from January 1999 to July 2002.
Prior to joining the Cappello Group, Mr.&nbsp;Pernice served as a senior corporate
executive in government and industry for more than 17&nbsp;years. Most recently, he
was Vice President, Public Affairs and a corporate officer for Dole Food Co.
Inc. (NYSE:DOL),reporting to the chairman and CEO, David H. Murdock. He also
served in similar capacities for the conglomerate of publicly and privately
held business interests of Mr.&nbsp;Murdock, including Castle &#038; Cooke Inc. real
estate company, formerly (NYSE:CCS), now
</FONT>
<P align="center"><FONT size="2">11
</FONT>

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<P><FONT size="2">privately held. Prior to joining Dole
Food Co., Mr.&nbsp;Pernice served in the White House for more than seven years in
various capacities for the Reagan and Bush Administrations. Mr.&nbsp;Pernice earned
a Bachelor of Arts degree from the University of Southern California in 1984.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Boris Skurkovich, M.D. </B>- Since 1986, Dr.&nbsp;Skurkovich has served as a member
of the Board of Directors, and from that same date until December 2000, he was
a Vice President of the Company. He completed a clinical and research
fellowship at the Maxwell Finland Laboratory for Infectious Diseases, Boston
City Hospital, Boston, Massachusetts, and presently is a professor at Brown
University Medical School. He has collaborated with his father, Simon
Skurkovich, M.D., on the development of the Company&#146;s treatment of autoimmune
diseases. Dr.&nbsp;Skurkovich received his M.D. from the Moscow State Medical
Institute.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Simon Skurkovich, M.D. </B>- Since April, 2001, Dr.&nbsp;Skurkovich has served as
Director of Research and Development. From 1985 until September 2000, Dr.
Skurkovich served as Chairman of the Board of Directors. He has been granted
five patents in Russia, and eight in the United States. He is the creator of
immune preparations from human blood against antibiotic resistant bacteria that
saved thousands of lives in the Soviet Union and Eastern Europe. In Russia, he
was professor and Chief of the Immunology Laboratory of the Institute of
Hematology and Blood Transfusion and was awarded gold and silver medals for his
scientific discoveries. His laboratory also was awarded the nation&#146;s highest
honor, the Lenin Prize, for his patented work. Dr.&nbsp;Skurkovich received an M.D.,
Ph.D. and a doctorate in medical sciences (D.Sc.) from Pirogov State Medical
Institute in Moscow. He has written more than 200 articles for scientific
publications.
</FONT>
<P align="left"><FONT size="2"><B>Recommendation of the Board of Directors</B></FONT>

<P align="left"><FONT size="2"><B>The Board of Directors recommends a vote FOR the election of the nominees
listed above.</B></FONT>

<!-- link1 "PROPOSAL NO. 2 INCREASE THE NUMBER OF AUTHORIZED SHARES OF COMMON STOCK" -->
<DIV align="left"><A NAME="006"></A></DIV>
<P align="center"><FONT size="2"><B>PROPOSAL NO. 2<BR>
INCREASE THE NUMBER OF AUTHORIZED SHARES OF<BR>
COMMON STOCK</B></FONT>

<P align="left"><FONT size="2"><B>Description of Amendment</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#146;s current Certificate of Incorporation authorizes the issuance
of up to 100,000,000 shares of Common Stock, par value $.001 per share. The
current Certificate of Incorporation also authorizes the issuance of up to
20,000,000 shares or Preferred Stock, par value $.001 per share. This Proposal
2 seeks the approval of the Company&#146;s Stockholders to increase the aggregate
number of shares of Common Stock that the Company shall have the authority to
issue up to 200,000,000 shares.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September&nbsp;30, 2002, The Company had issued and outstanding
43,584,701 shares of Common Stock, and an additional 31,265,273 shares of
Common Stock were reserved to be issued pursuant to outstanding Company stock
options, warrants, convertible debt and convertible notes. The Board of
Directors has approved an increase in the authorized number of shares of Common
Stock from 100,000,000 shares to 200,000,000 shares in order to facilitate the
Company&#146;s ability to raise capital, to facilitate acquisitions and mergers and
to attract qualified employees by offering stock options for shares of Common
Stock as incentive compensation for such persons, by authorizing the issuance
of additional securities of the Company for purposes of effectuating such
transactions.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has no current plans or commitments to issue Common Stock in
connection with any acquisition or merger. The Company has granted, and plans
to continue to grant, from time to time, stock options for shares of Common
Stock as incentive compensation.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Preferred Stock may be issued from time to time in one or more series,
and the Board of Directors, without further approval of the Company&#146;s
Stockholders, is authorized to fix the relative rights, preferences, privileges
and restrictions applicable to each series of Preferred Stock. Such shares of
Preferred Stock, if and when issued, may have rights, powers and preferences
senior to those of the Company&#146;s Common Stock. While the Company has no
current plans or commitments to issue any Preferred Stock, in the event of any
issuances, the holders of the Common Stock will not have any preemptive or
similar rights to acquire any Preferred Stock.
</FONT>
<P align="center"><FONT size="2">12
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although approval of this Proposal 2 would increase the number of shares
of authorized capital stock, it would not result in any change in the voting
power of, or equity percentages of the Company owned by Stockholders. Sale and
issuance of such authorized but unissued shares of capital stock would remain
within the discretion of the Board of Directors, in the exercise of their
fiduciary duties and subject to applicable corporate, securities and other laws
and regulations.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The proposed change would cause Article&nbsp;Fourth of the Company&#146;s
Certificate of Incorporation to read as follows:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;FOURTH:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1. The total number of shares of stock which the Corporation shall have
the authority to issue is Two Hundred Twenty Million 220,000,000), consisting
of Two Hundred Million 200,000,000) shares of Common Stock, $.001 par value
per share, and Twenty Million (20,000,000) shares of Preferred Stock, $.001 par
value per share.&#148;
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The existing Paragraph&nbsp;1 of Article&nbsp;Fourth of the Company&#146;s Certificate of
Incorporation, marked to show the proposed amendment, is set forth below:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;FOURTH:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1. The total number of shares of stock which the Corporation shall have
the authority to issue is <strike>One</strike> <U>Two</U> Hundred
<strike>and</strike> Twenty Million (<strike>1</strike><U>2</U>20,000,000),
consisting of <strike>One</strike> <U>Two</U> Hundred Million
(<strike>1</strike><U>2</U>00,000,000) shares of Common Stock,
$.001 par value per share, and Twenty Million (20,000,000) shares of Preferred
Stock, $.001 par value per share.&#148;
</FONT>
<P align="left"><FONT size="2"><B>Vote of the Stockholders</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Company&#146;s Certificate of Incorporation and Delaware Law, this
Proposal No.&nbsp;2 to increase the authorized number of shares of Common Stock in
the Company&#146;s Certificate of Incorporation must be approved by the affirmative
vote of at least a majority of the shares of Common Stock present in person or
by proxy at the Annual Meeting and entitled to vote at the Meeting.
</FONT>
<P align="left"><FONT size="2"><B>Recommendation of the Board of Directors</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>The Board of Directors of the Company Recommends a Vote FOR this Proposal No.&nbsp;2.</B>
</FONT>
<!-- link1 "OTHER MATTERS" -->
<DIV align="left"><A NAME="007"></A></DIV>
<P align="center"><FONT size="2"><B>OTHER MATTERS</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company knows of no other matters that will be presented for
consideration at the Annual Meeting. If any other matters properly come before
the Annual Meeting, the persons named as proxies on the enclosed proxy card or
their substitutes will vote such proxy in accordance with their discretion with
respect to such matters.
</FONT>
<!-- link1 "AVAILABLE INFORMATION" -->
<DIV align="left"><A NAME="008"></A></DIV>
<P align="center"><FONT size="2"><B>AVAILABLE INFORMATION</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has adopted a new written charter (a copy of which
is attached as Appendix&nbsp;A hereto) for the Audit Committee, updated to comply
with the recently enacted Sarbanes-Oxley Act.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the proposed Certificate of Amendment to the Company&#146;s
Certificate of Incorporation, authorizing the issuance of up to 200,000 shares
of Common Stock is attached hereto as Appendix&nbsp;B.
</FONT>
<P align="left"><FONT size="2">Dated: October&nbsp;25, 2002</FONT>


<P align="center"><FONT size="2">13</FONT>


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<P align="center"><FONT size="2"><B>APPENDIX &#147;A&#148;</B></FONT>

<P align="center"><FONT size="2"><B>AUDIT COMMITTEE CHARTER<BR>
ADVANCED BIOTHERAPY, INC.</B></FONT>

<P align="left"><FONT size="2"><B>The Purpose of the Audit Committee</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of the Audit Committee is to assist the Board of Directors in
its general oversight of the Company&#146;s financial reporting, internal control
and audit functions. Management is responsible for the preparation,
presentation and integrity of the Company&#146;s financial statements, accounting
and financial reporting principles, internal controls and procedures designed
to assure compliance with accounting standards, applicable laws and
regulations. The Company&#146;s independent auditing firm is responsible for
performing an independent audit of the consolidated financial statements in
accordance with generally accepted auditing standards.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee members are not professional accountants or auditors,
and their functions are not intended to duplicate or to certify the activities
of management and the independent auditor, nor can the Committee certify that
the independent auditor is &#147;independent&#148; under applicable rules. The Committee
serves a board-level oversight role in which it provides advice, counsel and
direction to management and the auditors on the basis of the information it
receives, discussions with the auditors and the experience of the Committee&#146;s
members in business, financial and accounting matters.
</FONT>

<P align="left"><FONT size="2"><B>Membership</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee is comprised of at least three directors who meet the
independence and qualification requirements as provided in the applicable
Marketplace Rules of the Nasdaq Stock Market. Appointment to the Committee,
including the designation of the Chair of the Committee, shall be made on an
annual basis by the full Board. All of the members will be directors:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Who have no relationship to the Company that may interfere with the
exercise of their independence from management and the Company; and
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Who are financially literate or who become financially literate within
a reasonable period of time after appointment to the Committee. In addition,
one member of the Committee will have accounting or related financial
management expertise.
</FONT>
<P align="left"><FONT size="2"><B>Responsibilities</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following functions shall be the common recurring activities of the
Committee in carrying out its oversight function. These functions are set
forth as a guide with the understanding that the Committee may diverge from
this guide as appropriate given the circumstances:
</FONT>
<P align="center"><FONT size="2">A-1
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Committee has ultimate authority and responsibility to select,
evaluate and, when appropriate, replace the independent auditor. The
independent auditor, in its capacity as an independent public accounting firm,
is to be informed that it is responsible to the Board of Directors and the
Audit Committee as representatives of the stockholders, and it is to report
directly to the Audit Committee.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Committee on at least an annual basis obtains from the independent
auditor a formal written statement delineating all relationships between the
independent auditor and the Company, consistent with standards set by the
Independence Standards Board. The Audit Committee discusses with the
independent auditor relationships and services that in the view of the
Committee may affect auditor objectivity or independence. If the Committee is
not satisfied with the auditor&#146;s assurances of independence, the Committee
takes or recommends to the full Board appropriate action to ensure the
independence of the independent auditor.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;The Committee reviews the audit fee, the independent auditor&#146;s
non-audit services and factors related to the independence of the auditor such
as the extent to which non-audit services have been performed.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The Committee meets with the internal (if any) and external auditors to
review their audit plans, the audit scope, and the results of their audit work
with regard to the adequacy and appropriateness of the accounting and financial
controls of the Company.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;The Committee reviews annually the performance of both the internal
audit group (if any) and the independent auditor in executing these plans and
meeting their objectives.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;As a whole, or through the Committee chair, the Committee shall review
with the outside auditors the Company&#146;s interim financial results to be
included in the Company&#146;s quarterly reports to be filed with Securities and
Exchange Commission and the matters required to be discussed by applicable
statements of auditing standards.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;The Committee reviews with the independent auditor its judgments as to
the quality, not just the acceptability, of the Company&#146;s accounting principles
and such matters as are required to be discussed with the Committee under
generally accepted auditing standards.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;The Committee reviews and discusses with management the audited
financial statements, management&#146;s evaluations of the Company&#146;s internal
controls, overall quality of the Company&#146;s financial reporting, related auditor
views and the basis for audit conclusions, and, if deemed appropriate,
recommends to the Board of Directors that the audited financial statements be
included in the Annual Report on Form&nbsp;10-KSB.
</FONT>
<P align="center"><FONT size="2">A-2
</FONT>

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<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;The Committee reviews and discusses management and independent auditor
presentations to the Audit Committee with regard to various topics and events
that may have significant financial impact or are the subject of discussions
between management and the independent auditor.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;The Committee reviews and reassesses the adequacy of its charter
annually and determines whether to recommend to the full Board if the Audit
Committee charter should be reaffirmed or modified.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;The Committee publishes the report required by the rules of the
Securities and Exchange Commission to be included in the Company&#146;s annual proxy
statement.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;The Committee, when appropriate, is authorized to designate one or
more of its members to perform certain of its duties on its behalf, subject to
such reporting to or ratification by the Committee as the Committee shall
direct.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;The Committee, when appropriate, will establish procedures for the
receipt, retention and treatment of complaints received by the Company
regarding accounting or auditing matters.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;The Committee has authority to hire independent counsel and other
advisors.
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Chairman of the Audit Committee is to be contacted directly by the
independent auditor (1)&nbsp;to review items of a sensitive nature that can impact
the accuracy of financial reporting or (2)&nbsp;to discuss significant issues
relative to the overall Board responsibility that have been communicated to
management but, in their judgment, have not been adequately addressed.
</FONT>

<P align="center"><FONT size="2">A-3</FONT>


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<P align="center"><FONT size="2"><B>APPENDIX &#147;B&#148;</B></FONT>

<P align="center"><FONT size="2"><B>CERTIFICATE OF AMENDMENT OF<BR>
CERTIFICATE OF INCORPORATION OF<BR>
ADVANCED BIOTHERAPY, INC.</B></FONT>

<P><FONT size="2">FIRST: That at the October&nbsp;8, 2002, meeting of the Board of Directors of
Advanced Biotherapy, Inc., a Delaware corporation (the &#147;Corporation&#148;),
resolutions were adopted setting forth a proposed amendment of the Certificate
of Incorporation of the Corporation (&#147;Amendment&#148;), declaring said Amendment to
be advisable and called a meeting of the stockholders of the Corporation for
consideration thereof. The resolution setting forth the proposed Amendment is
as follows:
</FONT>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="1%" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width="99%"></TD>
</TR>
<TR valign="top">
        <TD nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESOLVED, that the Certificate of Incorporation of this Corporation
be amended by changing the Article thereof numbered &#147;Fourth&#148; so that, as
amended, said Article shall be and read as follows:</FONT></TD>
</TR>
</TABLE>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR>
        <TD width="1%" nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width="99%"></TD>
</TR>
</TABLE>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;FOURTH:</FONT>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
   <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
   <TD width="1%" align="right" nowrap><FONT size="2">1.</FONT></TD>
        <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD width="97%"><FONT size="2">The total number of shares of stock which the
Corporation shall have the authority to issue is Two Hundred
Twenty Million (220,000,000), consisting of Two Hundred
Million (200,000,000) shares of Common Stock, $.001 par value
per share, and Twenty Million (20,000,000) shares of
Preferred Stock, $.001 par value per share.</FONT></TD>
</TR>
<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="top">
   <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
   <TD width="1%" align="right" nowrap><FONT size="2">2.</FONT></TD>
        <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD width="97%"><FONT size="2">Shares of Preferred Stock may be issued from time to
time in one (1)&nbsp;or more series. The Board of Directors is
authorized, subject to limitations prescribed by law, to
provide by resolution of the Board of Directors for the
issuance of the shares of Preferred Stock in series to
establish from time to time the number of shares to be
included in each such series, and to fix by resolution of the
Board of Directors the designation, powers, preferences and
rights of the shares of each such series and the
qualifications, limitations or restrictions thereof. The
authority of the Board of Directors with respect to each
series shall include, but not be limited to, determination of
the following: (a)&nbsp;the number of shares constituting that
series and the distinctive designation of that series; (b)
the dividend rate on the shares of that series, whether
dividends shall be cumulative, and, if so, from which date or
dates, and the relative rights of priority, if any, of</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2">B-1
</FONT>

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<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
   <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
   <TD width="1%" align="right" nowrap><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" nowrap><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD width="97%"><FONT size="2">payment of dividends on shares of that series; (c)&nbsp;whether
that series shall have voting rights, in addition to the
voting rights provided by law, and, if so, the terms of
such voting rights; (d)&nbsp;whether that series shall have
conversion privileges, and, if so, the terms and conditions
of such conversion, including provisions for adjustment of
the conversion rate in such events as the Board of
Directors shall determine; (e)&nbsp;whether or not the shares of
that series shall be redeemable and, if so, the terms and
conditions of such redemption, including the date or dates
upon or after which they shall be redeemable, and the
amount per share payable in case of redemption, which
amount may vary under different conditions and at different
redemption dates; (f)&nbsp;whether that series shall have a
sinking fund for the redemption or purchase of shares of
that series and, if so, the terms and amount of such
sinking fund; (g)&nbsp;the rights of the shares of that series
in the event of voluntary or involuntary liquidation,
dissolution or winding up of the Corporation and the
relative rights of priority, if any, of payment of shares
of that series; and (h)&nbsp;any other relative or participating
rights, preferences and limitations of that series. The
Board of Directors is further authorized to increase or
decrease (but not below the number of shares of such class
or series then outstanding) the number of shares of any
series subsequent to the issuance of shares of that
series.&#148;</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">SECOND: That thereafter, pursuant to resolution of its Board of Directors, at
the Annual Meeting of the stockholders of the Corporation, upon notice in
accordance with Section&nbsp;222 of the General Corporation Law of the State of
Delaware, the necessary number of shares as required by statute were voted in
favor of the Amendment.
</FONT>
<P><FONT size="2">THIRD: That the Amendment was duly adopted in accordance with the provisions of
Section&nbsp;242 of the General Corporation Law of the State of Delaware.
</FONT>
<P><FONT size="2">FOURTH: That the capital of the Corporation shall not be reduced under or by
reason of said Amendment.
</FONT>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR>
        <TD width="50%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="49%">&nbsp;</TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">By:&nbsp;</FONT></TD>
</TR>
<TR>
        <TD colspan="2"><FONT size="1">&nbsp;</FONT></TD>
        <TD><HR size="1" noshade color="#000000"></TD>
</TR>
<TR valign="top">
        <TD colspan="2">&nbsp;</TD>
        <TD><FONT size="2">
Edmond Buccellato, President and<BR>
Chief Executive Officer</FONT></TD>
</TR>
</TABLE>


<P align="center"><FONT size="2">B-2</FONT>


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<P align="center"><FONT size="2"><B>PROXY</B></FONT>

<P align="center"><FONT size="2"><B>ADVANCED BIOTHERAPY, INC.</B></FONT>

<P align="center"><FONT size="2"><B>THIS PROXY IS BEING SOLICITED BY THE BOARD OF DIRECTORS</B></FONT>

<P align="center"><FONT size="2"><B>FOR AN ANNUAL MEETING OF STOCKHOLDERS</B></FONT>

<P align="center"><FONT size="2"><B>TO BE HELD ON DECEMBER 12, 2002</B></FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned stockholder appoints John M. Bendheim and Thomas J.
Pernice, or either of them, as proxy with full power of substitution, to vote
the shares of common stock of Advanced Biotherapy, Inc., a Delaware corporation
(the &#147;Company&#148;), which the undersigned is entitled to vote at an Annual Meeting
of Stockholders to be held at the Woodland Hills Marriott, 21850 Oxnard Street,
Woodland Hills, California 91367 on December&nbsp;12, 2002, at 2:00 p.m., local
time, and at any adjournments thereof (the &#147;Meeting&#148;), upon matters properly
coming before the meeting, as set forth in the Notice of Annual Meeting and
Proxy Statement, both of which have been received by the undersigned. Without
otherwise limiting the general authorization given hereby, such proxy is
instructed to vote as follows:
</FONT>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS PROXY WILL BE VOTED AS DIRECTED, OR IF NO CONTRARY DIRECTION IS
INDICATED, WILL BE VOTED FOR THE PROPOSALS INDICATED ON THIS CARD AND AS SUCH
PROXIES DEEM ADVISABLE WITH DISCRETIONARY AUTHORITY ON SUCH OTHER BUSINESS AS
MAY PROPERLY COME BEFORE THE MEETING AND ANY ADJOURNMENT OR ADJOURNMENTS
THEREOF.</B>
</FONT>
<P><FONT size="2">1.&nbsp;To elect to the Board of Directors nine (9)&nbsp;directors to serve until the
next Annual Meeting of Stockholders of the Company and until their successors
are elected and qualified, or until death, resignation or removal.
</FONT>
<P>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="top">
        <TD width="10%" align="right" nowrap><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
        <TD width="90%" align="left"><FONT size="2">FOR all nominees listed herein (except as marked up to the contrary below)</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">(INSTRUCTIONS: To withhold authority to vote for any individual nominee, strike
a line through the nominee&#146;s name listed below.)
</FONT>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="50%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">JOHN BENDHEIM</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
LAWRENCE LOOMIS</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">EDMOND BUCCELLATO</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
LEONARD MILLSTEIN, PH.D.</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">ALEXANDER L. CAPPELLO</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
THOMAS J. PERNICE</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">RICHARD P. KIPHART</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
BORIS SKURKOVICH, M.D.</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
SIMON SKURKOVICH, M.D.</FONT></TD>
</TR>
</TABLE>
<P><FONT size="2">2.&nbsp;To approve and adopt an amendment to the Company&#146;s Certificate of
Incorporation to increase the authorized number of shares of common stock from
100,000,000 shares to 200,000,000 shares.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="85%">
<TR valign="bottom">
        <TD width="26%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="34%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="30%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093;&nbsp;FOR</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
&#091;&nbsp;&nbsp;&nbsp;&#093;&nbsp;AGAINST
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&#091;&nbsp;&nbsp;&nbsp;&#093; ABSTAIN</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the discretion of the Board of Directors, the proxy is authorized to
vote upon such other business as may properly come before the meeting.
</FONT>
<P align="center"><FONT size="2">&nbsp;
</FONT>

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<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="5%">&nbsp;</TD>
        <TD width="40%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="50%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">DATED:</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2"></FONT></TD>
        <TD valign="bottom"><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2"></FONT></TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Signature</FONT></TD>
</TR>

<TR><TD>&nbsp;</TD></TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2"></FONT></TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2"></FONT></TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Signature of joint holder (if applicable)</FONT></TD>
</TR>
<TR><TD>&nbsp;</TD></TR>


<TR valign="bottom">
        <TD valign="top"><FONT size="2"></FONT></TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="bottom"><HR size="1" noshade></TD>
</TR>

<TR valign="bottom">
        <TD valign="top"><FONT size="2"></FONT></TD>
        <TD valign="bottom">&nbsp;</TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">Print Name(s)</FONT></TD>
</TR>

</TABLE>
<P><FONT size="2">(Please sign exactly as your name appears hereon. When signing as attorney,
executor, administrator, trustee or guardian, please give your full title. If
shares are jointly held, each holder must sign. If a corporation, please sign
in full corporate name by President or other authorized officer and Secretary
or other additional officer. If a partnership, trust or other entity, please
sign in the partnership or trust or other entity name by an authorized person).
</FONT>
<P><FONT size="2">WHETHER OR NOT YOU EXPECT TO ATTEND THE MEETING, PLEASE CHECK THE BOXES ABOVE
AND, IF DESIRED, MARK ANY INDIVIDUAL DIRECTOR-NOMINEE&#146;S NAME, SIGN, DATE AND
RETURN THIS PROXY TO AMERICAN STOCK TRANSFER &#038; TRUST CO., 6201 15TH AVENUE,
BROOKLYN, NEW YORK 11219, ATTN: PROXY SERVICES, IN THE SELF-ADDRESSED ENVELOPE
PROVIDED.
</FONT>
<P><FONT size="2">THE PERSONS NAMED IN THE ACCOMPANYING PROXY CARD ARE DIRECTORS OR OFFICERS OF
THE COMPANY. A STOCKHOLDER HAS THE RIGHT TO APPOINT A PERSON OTHER THAN THE
PERSON NAMED IN THE ENCLOSED PROXY CARD TO ATTEND AND ACT FOR HIM ON HIS BEHALF
AT THE MEETING. TO EXERCISE THIS RIGHT, A STOCKHOLDER SHALL STRIKE OUT THE
NAMES OF THE PERSONS NAMED IN THE PROXY CARD AND INSERT THE NAME OF HIS OR HER
NOMINEE IN THE BLANK SPACE PROVIDED, OR COMPLETE ANOTHER PROXY CARD. THE
COMPLETED
PROXY CARD SHOULD BE DEPOSITED WITH THE COMPANY&#146;S TRANSFER AGENT, AMERICAN
STOCK TRANSFER &#038; TRUST CO., 6201 15TH AVENUE, BROOKLYN, NEW YORK 11219, AT
LEAST 10 DAYS PRIOR TO THE MEETING OR DELIVERED TO THE COMPANY AT 6355 TOPANGA
CANYON BOULEVARD, SUITE 510, WOODLAND HILLS, CALIFORNIA 91367 AT LEAST 48 HOURS
BEFORE THE TIME OF THE MEETING OR ANY ADJOURNMENT THEREOF. IN ADDITION, A
STOCKHOLDER MAY REVOKE A PROXY PREVIOUSLY GIVEN BY ATTENDING THE ANNUAL MEETING
IN PERSON AND VOTING.
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>


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