BOYNTON, Fla., Sept. 29, 2003 (PRIMEZONE) -- Jacobson Resonance Enterprises, Inc. (OTCBB:JRSE) company Chairman and Chief Executive Officer, Dr. Jerry I. Jacobson has provided the following open letter to all shareholders and the investment community.
Opening Remarks:
"I am taking this opportunity to address our shareholders and the investment community in general. Our company has gone through several years of what can only be described as a difficult yet formative and challenging period. We have spent a considerable amount of time, energy and funds in repositioning JRSE and building a new foundation for success."
Dr. Jacobson continued: "It has always been our focus to develop multiple applications of Jacobson Resonance technology, particularly the alleviation of human suffering, and effectively capitalize on its market potential. These applications are positively impacting the quality of life (around the world, except in the USA) by alleviating chronic and acute pain and sports injuries, mitigating the symptoms of disease, and improving the performance of products and/or processes while yielding potentially attractive rates of return to build shareholder value."
Dr. Jacobson further stated: "I am excited as we embark on research protocols that will enable us to learn and grow our technology, scientific base and outreach to people suffering with a variety of patho-physiological states. Our initiatives will also serve as a commercial springboard to allow greater outreach to scientists and institutions, and grow our efforts to educate the world to the potential and possibilities inherent in our methodology."
Our Core Technology:
Jacobson Resonance core technology is based on a discovery made by Dr. Jacobson over twenty-four years ago that is now gaining world-wide scientific and regulatory recognition and public acclaim. The Company's technological base has the potential for multiple industry applications including the fields of medicine, the spa and leisure arena, food and beverage, pharmaceuticals, energy and the environment. We believe our scientific base, which drives our business, is second to none in the world for any bioelectromagnetic company. Rigorous scientific studies have been conducted at major American and European institutions and include nerve regeneration; cardiovascular electro physiology, cancer, pain management, wound healing and agriculture and have all yielded positive results. These institutions include the Weill Medical College of Cornell University, University of Oklahoma, Fairleigh Dickenson University, Mississippi State University, Texas A. & M. University, University of Memphis, Alcala University, Madrid, Spain, University of Delhi, India and more.
The common thread tying these studies has been the use of the Jacobson Resonance physico-mathematical apparatus to determine the precise electromagnetic signal parameters. In medical therapeutics we apply magnetic fields that are natural and found in the human body. These fields alleviate pain and suffering and assist the body in the healing process.
Historical Review:
Hindsight is always 20/20 and JRSE is no different than any other growth oriented company. Among many factors that hindered JRSE were: management ineffectiveness; a shotgun approach as opposed to one sharp focus for product commercialization; lack of controls with licensees based on performance; or FDA studies completed by individuals that were not completely familiar with procedures and requirements. These circumstances represented the need for experience. Today JRSE is well positioned with a strong and focused management team that maintains the same goals as the founder and Boards of Directors of the company. A long and arduous review of all license agreements with implementation of performance criteria has been completed, experienced regulatory professionals are prepared, and the scientific base has been established with rapid growth potential.
Moving Forward:
Since December 2002 JRSE has put its house in order, reorganized and updated internal systems, formed an Advisory Board of successful businessmen, abrogated outdated and unprofitable agreements and initiatives, renegotiated and strengthened contemporary agreements and contracts, hired a new accounting firm, created new strategic alliances, sustained and increased potentially breakthrough research, strengthened, expanded and reorganized our management team, and focused our business on revenue producing projects independent of regulatory clearances and approvals. All of these efforts and changes were accomplished in order to facilitate revenue streams as we move through 2004-2005. JRSE plans on receiving its revenues through various vehicles including licensing fees, royalties, usage fees, strategic alliances, joint ventures, partnerships, etc.
Since our elected Board of Directors is dispersed throughout the USA and Europe we felt it both necessary and practical to form a local Advisory Board of seasoned and successful businessmen. This board brings to the table a diversity of experience from medical technology to financial planning to entrepreneurial know-how. The board meets in person at our international headquarters about once a month, however various teleconferences are ongoing.
Primary Revenue-Producing Projects:
1. Off-shore clinics and the leisure/spa arena -- We plan to
begin in the Bahamas and in the Caribbean Basin. The
foundation for the commercial aspect will be in the pain
management and leisure/spa arena, broadly defined as
relaxation and rejuvenation. Indeed, being positioned
off-shore permits us to alleviate human suffering as
an adjunctive therapy and work towards mitigating the
effects of a wide range of ailments, syndromes, diseases
and disorders. In addition, these off-shore sights present
opportunities to carry out various case-controlled and
double blind clinical studies that can be published in
respected scientific publications. We anticipate that our
first treatment center in the Bahamas will open in the last
quarter of 2004
2. Battery Powered Portable Resonators For Human Usage. (Except
in the USA) -- JRSE has granted licensing rights to
P.E.R., Inc. of St. Kitts Nevis to manufacture and market
worldwide (except in the USA) an exclusive line of battery
powered portable resonators for human usage. The patented
technology being employed has achieved Canadian clearance
and European approval. This technology has been known to
aid in the alleviation of pain and discomfort and the
alleviation of soft tissue tension, as in muscles. These
lightweight, miniaturized devices will be available
through the Internet, opt-in-email advertising, print
media advertisements in major cities, at off-shore clinics,
storefront retail where available, and eventually through
infomercials. This device should be available Q1/Q2 2004.
JRSE is receiving a licensing fee and a royalty for each
portable resonator sold.
3. FDA Clearance To Be Sought -- JRSE is planning a double
blind, randomized, placebo controlled triple sight
study for FDA clearance for the alleviation of
tension in soft tissue such as muscle. We are hopeful
that this study will be completed and submitted for
clearance in 2004. Upon clearance commercialization will
be vigorously sought. Accomplished regulatory consultants
have been retained for structuring, monitoring and
submission of clinical studies for FDA clearance.
Key Relationships and Initiatives:
We have realigned and strengthened our position with our Licensees in Canada and Europe. Bio Resonance Technology, Inc. of Winnipeg has achieved growing acceptance from the Canadian Medical Community and has gained support of key third party insurers, government agencies and physicians. The company expects to begin commercialization of Magnetic Resonance Therapy (MRT) treatments using the Jacobson Resonator for the alleviation of pain associated with arthritic conditions and lower back pain in the forth quarter of 2004. Bio Resonance Technology, Inc. projects royalties to JRSE beginning in the forth quarter of 2004.
BioRes Medical, Madrid, Spain, JRSE's Licensee in the European Union has Jacobson Resonators in twenty-three hospitals in Spain and one in Portugal successfully treating patients with the CE-MARK approved ATDS360-18 "Automated Treatment Delivery System." These patients suffer from pain associated with chronic knee disease. The pain is being alleviated at an efficacy rate of 78% and quality of life is restored. This Magnetic Resonance Therapeutic Treatment (MRT) is the first of its kind approved by the European Union. We believe that royalty revenues will grow proportionately as reimbursements from hospitals come in and as the system is distributed and accepted throughout the European Union countries. Revenues from BioRes Medical should resume in 2004 and will come from resonator manufacturing and distribution royalties as well as usage fees for treatment sessions.
Key relationships in science and academia include major American and European universities and institutions (as sighted above). Our original technology was prototyped and characterized by NASA subcontractors at the prototyping laboratories, of the John C. Stennis Space Center. We have key relationships with the Health Authorities in the European Union, Canada and the USA. Nystrand Technologies, Inc, Boca Raton, Emilio Lopez, President (25 years executive in Medtronic), is the JRSE Executive Consultant for Worldwide Development.
Endeavors on the Horizon:
As the aforementioned initiatives come to fruition JRSE is turning its attention to two potentially lucrative areas that do not require regulatory approvals -- Veterinary Medicine and Resonated/Energized beverages.
Veterinary Medicine -- There are 22,000 veterinary hospitals and 80,000 licensed veterinarians in the United States. A 1995 marketing study by the American Animal Hospital Association detailed a market of between 115-120 million companion animals (dogs and cats) in the United States for which animal owners spent some $20 Billion for pet related products and services. The study also detailed that of the 65 million households 58.5% owned a pet and 76% of these considered the animal part of the family. The medical services component of the market, that is, those services dispensed by a licensed veterinarian, accounted for $11 Billion in 2001 and continues to grow.
Preliminary studies by JRSE at Mississippi State University and other sights indicate that the efficacy for the treatment of animals in pain management and other maladies is concurrent with humans. It is our plan to tap into this market segment in 2004/2005. Initial, promising discussions have been held with Veterinarians who are keenly interested in introducing Jacobson Resonance Technologies into the veterinary arena.
Resonated/Energized Water and Beverages -- The specialty water and beverage business has exploded into a multi-billion dollar industry. These specialty drinks range from Gatorade, to Red Bull, to so-called magnetized water, and claims of restructured water molecules. JRSE has completed several preliminary scientific studies with water that point toward astounding results. Firstly, we have shown increased water transport across membranes. We also demonstrated changes in hardness, softness, pH, conductance and clustering. Additionally we have resonated water that has demonstrated more illumination, that is, more light emanating from the water. In pre-marketing testing people felt they absorbed the water more quickly and had more energy and stamina. Additional scientific studies are anticipated and we are engaged in discussions to tap into this lucrative market niche.
Positive Prospects for Success:
We foresee multiple revenue streams coming online during 2004/2005. From our first off shore clinical sight we will see first dollar revenues into our joint venture by the end of 2003. Royalty revenues from the sales of portable resonators should be realized sometime during Q1/Q2 of 2004. Royalties from Bio Resonance, Technology Canada should begin in Q/4 of 2004 and revenues should resume from BioRes Medical, Spain in the beginning of 2004. By the end of 2004 JRSE should be receiving revenues from these initiatives.
Concluding Remarks:
Dr. Jacobson's concluding remarks included: "A number of other important scientific studies involving the areas of cardiology, oncology, neurology, ranging from in-vitro (cell study), in-vivo (animal study), to clinical trials are either under way or being planned. Within the time frame 2004-2005, some of these studies may prove groundbreaking for the benefit of humanity. While years of rigorous research are required to bring evidence to light that transforms vision to practical case scenarios, it is my belief that Jacobson Resonance is clearly on the march. I promise that all my energies will be dedicated to realizing the 'wide-ranging' potential of our emerging technology."
The above descriptions of current business activities are delineated as of September 29, 2003. As each of these initiatives moves forward changes may occur and updates will be given. Please feel free to visit JRSE on the web at http://www.jrse.com.
JRSE is an emerging worldwide leader in magnetic resonance technology, whose main focus is the eradication of human suffering. The Company's technology base has the potential for multiple industry applications including the fields of medicine, spa and leisure arena, food and beverage, pharmaceuticals, energy and the environment.
Thank You,
Dr. Jerry I. Jacobson
Chairman and Chief Executive Office
Jacobson Resonance Enterprises, Inc.
Safe Harbor, Caution Concerning Forward-Looking Statements by Jacobson Resonance Enterprises, Inc.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters covered by such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to differ materially from those contemplated or implied by such forward-looking statements. For further information, contact Harvey Grossman at (561) 752.4141.