<PAGE>   1
TO OUR SHAREHOLDERS:

INOTEK Technologies Corp. reported earnings of $65,343 or $.01 per share on
revenues of $6,107,634 for its second quarter ended November 30, 1995 compared
with a net loss of $37,377 or $.01 per share on revenues of $6,370,961 for the
second quarter of the previous year.

For the first six months of the year, the Company reported earnings of $100,300
or $.02 per share on revenues of $12,061,299 compared with a net loss of
$84,503 or $.02 per share on revenues of $12,866,819 for the first six months
of the previous year.

Thank you for your continued support.



/s/ NEAL E. YOUNG                          /s/ DAVID L. WHITE
---------------------------------          -------------------------------------
Neal E. Young                                                     David L. White
Chairman                                                 Chief Executive Officer

                                                                January 12, 1996



INOTEK TECHNOLOGIES CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)


<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED                 SIX MONTHS ENDED
                                                               NOVEMBER 30                      NOVEMBER 30
                                                          1995            1994             1995             1994
-------------------------------------------------------------------------------------------------------------------
<S>                                                   <C>             <C>             <C>              <C>
NET SALES                                             $ 6,107,634     $ 6,370,961     $ 12,061,299     $ 12,866,819
COST AND EXPENSES:
   COST OF SALES                                        4,359,711       4,611,039        8,631,282        9,340,788
   SALES AND MARKETING                                    895,073       1,137,848        1,777,878        2,374,242
   GENERAL AND ADMINISTRATIVE                             718,828         676,981        1,432,225        1,380,439
-------------------------------------------------------------------------------------------------------------------
      TOTAL COST AND EXPENSES                           5,973,612       6,425,868       11,841,385       13,095,469
-------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (LOSS)                                   134,022         (54,907)         219,914         (228,650)
INTEREST EXPENSE                                           (7,667)        (35,226)         (15,042)         (61,926)
-------------------------------------------------------------------------------------------------------------------
EARNINGS (LOSS) FROM CONTINUING
   OPERATIONS BEFORE INCOME TAXES                         126,355         (90,133)         204,872         (290,576)
INCOME TAXES                                               61,012         (23,446)         104,572          (92,405)
-------------------------------------------------------------------------------------------------------------------
EARNINGS (LOSS) FROM CONTINUING OPERATIONS                 65,343         (66,687)         100,300         (198,171)
DISCONTINUED OPERATION                                        -            29,310              -            113,668
-------------------------------------------------------------------------------------------------------------------
NET EARNINGS (LOSS)                                   $    65,343     $   (37,377)    $    100,300     $    (84,503)
===================================================================================================================
PER SHARE:
   EARNINGS (LOSS) FROM CONTINUING OPERATIONS         $       .01     $      (.02)    $        .02     $       (.04)
   DISCONTINUED OPERATION                                     -               .01              -                .02
NET EARNINGS (LOSS)                                   $       .01     $      (.01)    $        .02     $       (.02)
===================================================================================================================
</TABLE>


                           INOTEK TECHNOLOGIES CORP.
                                BALANCE SHEETS

<TABLE>
<CAPTION>

                                                NOVEMBER 30        MAY 31
                                                   1995             1995
---------------------------------------------------------------------------
                                                (UNAUDITED)


<S>                                             <C>             <C>   
                                    ASSETS

CURRENT ASSETS:                                                       
  CASH AND CASH EQUIVALENTS                     $   474,621     $   576,799
  TRADE RECEIVABLES, (NET OF
    ALLOWANCE FOR DOUBTFUL
    ACCOUNTS OF $20,259 AND
    $45,048)                                      2,559,148       2,664,396
  INVENTORIES                                     2,314,258       2,284,406
  DEFERRED TAX ASSET                                 48,676          52,000
  PREPAID EXPENSES & OTHER ASSETS                   235,245         115,393
---------------------------------------------------------------------------
TOTAL CURRENT ASSETS                              5,631,948       5,692,994

PROPERTY AND EQUIPMENT, NET                         424,561         449,975
GOODWILL, NET                                     2,222,396       2,255,350
OTHER ASSETS                                         66,226          43,990
DEFERRED TAX ASSET                                  169,222         160,000
---------------------------------------------------------------------------
TOTAL ASSETS                                    $ 8,514,353     $ 8,602,309
===========================================================================


                     LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
  ACCOUNTS PAYABLE                              $ 1,568,729     $ 1,874,760
  ACCRUED EXPENSES                                  804,359         727,601
  INCOME TAXES PAYABLE                               69,592           5,215
  CURRENT PORTION OF NOTES PAYABLE                  317,383         222,298
---------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES                         2,760,063       2,829,874

NOTES PAYABLE                                           -             5,945

REDEEMABLE COMMON SHARES,
  $.01 PAR VALUE, 85,109 SHARES
  AT NOVEMBER 30, 1995 AND 121,109
  SHARES AT MAY 31, 1995                            268,776         381,276

SHAREHOLDERS' EQUITY:
  COMMON SHARES, $.01 PAR VALUE;
    AUTHORIZED SHARES - 10,000,000
    ISSUED SHARES - 4,439,197 AT
      NOVEMBER 30 AND MAY 31
    OUTSTANDING SHARES - 4,354,088
      AT NOVEMBER 30 AND MAY 31                      43,541          43,541
ADDITIONAL PAID-IN CAPITAL                        3,299,546       3,299,546
RETAINED EARNINGS                                 2,142,427       2,042,127
---------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY                        5,485,514       5,385,214
---------------------------------------------------------------------------
TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY                          $ 8,514,353     $ 8,602,309
===========================================================================
</TABLE>