Shareholder Update

April 7, 2010

 

Dear Valued Shareholder,

I wanted to take some time by communicating with you through this letter as to what we have done at Critical Solutions, Inc. over the past year and give you a glimpse of what we believe is in store for our company.

Over the past year we have focused on a number of important issues in order to keep the company solvent and operable.  This includes improving our relationships with our manufacturers, eliminating certain management personnel, cleaning up the balance sheet in order to be better situated for raising capital, developing a sales and marketing strategy, cultivating the existing pipeline of opportunities and funding the company enough to move forward.  It has not been an easy road for us but we have accomplished what we needed to do in order to position us for the near future.

In order to maximize shareholder value, we have recently negotiated with a convertible note holder, a reduction in the number of shares issued as a result of a convertible instrument entered into by the company in 2007.  We also have posted current information on pinksheets.com for the first time in the company’s history and will endeavor to post news and information when appropriate and will attempt to stay current with Pink Sheets.

Currently, we have a number of objectives we are setting out to implement which will not only give us the opportunity to generate revenue but more importantly set the proper stage for long term growth of our company.  Our main objectives are to:


1)      Establish and Strategically Grow our Intellectual Property Portfolio 

2)      Maximize Sales and Marketing Efforts of Existing and Future Products

3)      Strategically Develop and/or Purchase Technology that will Enhance Existing and Future Products

4)      Implement a Management Team and Board of Advisors that will place the Company in the best position for long term growth

5)      Develop Mechanisms to raise smart capital to facilitate the Company’s daily operations and growth that will help establish financial success and maximize shareholder return in the long term

         

Keep in mind, Critical Solutions is still a development stage company with a difficult road ahead but we have survived a tumultuous time in the life of our company.  We strongly believe in our product and we know a quality product with the proper marketing plan is vital to our success.  We are committed to building a prosperous company for the long term. 

Your involvement with Critical Solutions is most appreciated.  I wish all of you continued success in all of your endeavors and I thank you for your continued participation in Critical Solutions, Inc.


Kind Regards,

R. Paul Gray

Chief Executive Officer

Critical Solutions, Inc.


This shareholder update includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this update.