SYNFLEX AMERICA SETTLES LAWSUIT AGAINST COMPETITOR

You may have noted the similarities between Syn-flex and its bottle, dosage amounts, ingredients, and even some aspects of Synflex America's websites and those of a competing product Flexicose sold by DTC Health, Inc.. You should take note that Syn-flex has been produced and sold by us since 2001. DTC Health began selling Flexicose online in late 2003. After investigating Flexicose and DTC Health, we at Synflex America, Inc. filed a federal court lawsuit against the makers of Flexicose (DTC Health and its officers) in June 2004 in the United States District Court for the Middle District of North Carolina (DTC Health is located in that district) alleging false advertising, copyright infringement, unfair competition, and unfair and deceptive trade practices.

During the course of the lawsuit, the federal court judge entered a preliminary injunction ordering DTC Health not to engage in certain marketing practices during the duration of the case because there was a substantial likelihood that Synflex America would prevail on its claims of false advertising.

Synflex America settled the lawsuit with the makers of Flexicose in July 2005. As part of the settlement, we cannot disclose the terms of the settlement for a substantial period of time. However, the filings made in the federal court by the parties to the lawsuit and the Orders entered by the federal judge are all public information and we are providing to you copies of the following important court orders:

1. The Order and Preliminary Injunction ;
2. the final Consent Judgment entered into by Synflex America and DTC Health by which DTC Health agreed to a permanent injunction to stop certain of its marketing practices - Consent Judgment.

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