As we continue through 2010, the global economy continues to be quite unpredictable and even volatile at times, having a profound effect on corporations, small businesses, families and employees. Understanding this landscape, The Qualicaps Group is focused on continuous improvement of all of our businesses to help support our key partners’ growth and prosperity.

At Qualicaps, our business continues to perform admirably from our company best-in-history financial performance in 2009, thanks to the strong partnerships we have built over time with our key customers. We have dedicated our company and ourselves to focus our efforts on continuing to redefine the gold standard for capsule quality, customer service and technical expertise.

In 2010, a strategic development for The Qualicaps Group is the expansion effort at our two Quali-V® (HPMC) Capsule Centers of Excellence in Japan and Spain. These expansions are right on schedule and will give us both the capability and capacity needed to support our customers’ growing business into the distant future. It is critical for our company to have the necessary capacity in order to supply the best HPMC pharmaceutical capsules available in the marketplace. We expect to have the expansions at both sites completed by the end of the 3rd quarter of 2010 and ready for full-scale production by year’s end.

Thank you to all of our customers, suppliers and employees for helping us to succeed in these uncertain economic times. We pledge to continue to support your efforts and look forward to the future. Together we will continue to succeed.

Until Next Time,
Michael S. Sarno, Chief Executive Officer