Company Profile

Health Sciences Group, Inc. (HESG) is in the business of acquiring, integrating, and operating companies involved in health-related businesses. It has embarked on a plan to acquire companies in the fields of pharmaceuticals, nutraceuticals, and biotechnology and build them into a global collaborative network. The Company has completed a Phase I 24.34% equity interest in Biofarm, SA, a leading international pharmaceutical company based in Romania. A letter of intent is signed to acquire an additional 50% of the outstanding capital stock. Established in 1924, Biofarm is a pharmaceutical company which manufactures pharmaceutical drugs produced from biologically active substances. The company currently manufactures 60 pharmaceutical products in compressed, molded and coated tablets, soft gelatinous capsules, powders and granules, injection solutions, sprays, external and internal use solutions, syrups, and eye drops. For fiscal 2000, Biofarm reported revenues of US $7.4 million and is expected to report approximately US $9 million of revenues for fiscal 2001.

As part of its new business strategy, the Company plans to leverage this acquisition to launch its new business plan of acquiring and integrating into a collaborative network, companies operating in the fields of pharmaceuticals, nutraceuticals, and biotechnology. In December 2001, it completed its acquisition of 100% of the outstanding shares of XCEL Healthcare, Inc. for stock in Health Sciences. XCEL Healthcare, based in Woodland Hills, California, is a leading provider of pharmaceutical products and services, drug delivery systems, and bio-cosmetics. Revenues (unaudited) were estimated at $2.59 million in 2000.