[GRAPHIC OMITTED]
3 Bethesda Metro Center
Suite 700
Bethesda, MD 20814
Ph: 301.961.1992
Fax: 301.961.1991
Email: [email protected]
November 2000
Dear Stockholder,
During the past two and one half years, Alpha 1 Biomedicals has faced very
difficult circumstances. As you know, during 1998 and most of 1999 the Company
had to suspend operations due to severe financial constraints. Our first
product, Thymosin alpha 1, had been previously sold to SciClone Pharmaceuticals
in exchange for SciClone stock. This product is now approved in 20 countries.
As a result of these circumstances, the board decided to bring in three outside
consultants to analyze our situation, make recommendations, and help implement
changes which were in the Company's best interests. To that end, I am pleased to
report that these consultants have been of great help, although we still have
much difficult work ahead of us. Over the past year we have reduced our
liabilities from $1,327,000 at December 31, 1999 to $216,000 at June 30, 2000,
$50,000 of which remains due for a future supply of Thymosin beta 4
("T(beta)4"), which is currently under development. During this period we
renegotiated our agreements with SciClone to significantly improve our financial
situation. As of September 30, 2000 we had approximately $345,000 of cash and
$680,000 of marketable SciClone stock. In addition, our SEC filings have been
brought up to date.
On the research and development side, although hindered by limited funds,
significant progress has been made and we continue to work with the National
Institutes of Health to develop T(beta)4 as a treatment for the regeneration,
remodeling and healing of injured tissues, chronic wounds and other related
indications. As a result of our emphasis on developing T(beta)4, the Board of
Directors has recommended changing the Company's name to RegeneRx
Biopharmaceuticals, Inc.
Our consultants are advising the Board of Directors and me on a continuous basis
as we restart operations. We have decided for the time being that the best way
to operate is to continue to utilize a virtual company model. That is, to
utilize the services of outside experts rather than build an expensive
infrastructure at this time. This approach has worked well, thus far, and we
expect it to continue to do so for the foreseeable future.
Over the coming months we will seek to complete the preclinical studies
necessary to obtain FDA approval for testing of T(beta)4 in human clinical
trials and to try to create additional value for the company and, most
importantly, the stockholders. Indeed, we are hopeful that the progress we are
making will continue. On behalf of the Alpha 1 Board of Directors, we appreciate
your understanding and continued support while we work for our common interest
through these challenging times.
Sincerely,
Allan L. Goldstein, Ph.D.
Chairman and CEO
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