Bioelectronics Answers Shareholder Questions (OTC:BIEL)

4. What are the plans for increasing marketing efforts in US and around the world?

Answer – I allude to this partially in the answer above. The US marketing effort is of course contingent on FDA clearance, which we believe we will have shortly. The US marketing effort will rely heavily on our direct response television advertising as it is simply the best way to move a lot of product very quickly. Expect an aggressive rollout of this campaign in the first quarter of the year. As soon as FDA clearance is granted we will be making major decisions relative to strategic marketing initiatives. These will center on whether we plan to place the product ourselves to the grocery/drug store chains or if we want to license the technology to a major manufacturer. We have had several conversations with major manufacturers and consumer goods distribution companies and we see many options relative to these. It is a decision that has not been made yet, but will be made as soon as FDA clearance to market in the US is granted.

Relative to international we plan to accelerate our current strategy of creating distribution partnerships for specific countries or regional international geographies. We believe this is the best way to leverage our brands considering our limited marketing and managerial staffs.

5. Are the sales online (like Amazon.com) legal?

@@Adsense@@ Answer – Yes, of course. The online sales are through a separate distribution partnership operated under the direction of medical professionals. All customers who purchase the Allay product must complete a health questionnaire designed by medical professionals in order to qualify to receive the product. Therefore, purchase of the product falls under the practice of medicine. ActiPatch, is not marketed online within the United States. The websites that sell the product are operated by Canadian-based distributors.
6. Without going into specifics, any takeover/partnership negotiations going on?

Answer – This is an area that no company representative or management team member would ever venture into and therefore least must simply say we don’t have any comment relative to this issue. We have made no secret of our long-term desire to sell the products or the entire company to a larger organization.
7. Are you aware that REUTERS UPGRADED BIEL TO OUTPERFORM? Any comments ?

Answer – Yes – I am aware of the upgrade. I placed little value on such upgrades as the staff at Reuters performs very little real research into companies and is not really familiar with our operations. We clearly liked the upgrade, though we feel our shareholders are far more qualified to make an accurate assessment of the overall direction of BioElectronics.
8. On FDA approval, what are the plans to raise money for marketing and manufacturing in USA

Answer – Our ability to raise money is very robust. We get many calls each week from wealthy investors and investment organizations offering us money. We do not have specific plans to raise money for marketing and manufacturing as our balance sheet is in pretty good shape at the current moment. I remind you we also have the guarantee from the export/import bank that will allow us to quickly and inexpensively raise working capital to fund exports. We do not believe our domestic marketing campaigns will be particularly expensive. We have already paid for the production of television advertising spots – rather expensive, but you get what you pay for – all should be very high quality. Media buys (television time) should be self funding in that the short-term investment should be paid back with 4 to 1 revenue to expense ratio.

9. You have mentioned several times that BIEL is not considering Reverse Split. What is your latest stand on this issue?

Answer – I have never heard a discussion at BioElectronics relative to a reverse split.

10. Does BIEL plan to hold any shareholder conference calls?