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                                                                    Exhibit 99.1
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                              CAUTIONARY STATEMENT

          Integ Incorporated ("Integ" or the "Company"), or persons acting on
behalf of the Company, or outside reviewers retained by the Company making
statements on behalf of the Company, or underwriters, from time to time, may
make, in writing or orally, "forward-looking statements" as defined under the
Private Securities Litigation Reform Act of 1995 (the "Act").  This Cautionary
Statement is for the purpose of qualifying for the "safe harbor" provisions of
the Act and is intended to be a readily available written document that contains
factors which could cause results to differ materially from those projected in
such forward-looking statements.  These factors are in addition to any other
cautionary statements, written or oral, which may be made or referred to in
connection with any such forward-looking statement.

          The following matters, among others, may have a material adverse
effect on the business, financial condition, liquidity, results of operations or
prospects, financial or otherwise, of the Company.  Reference to this Cautionary
Statement in the context of a forward-looking statement shall be deemed to be a
statement that any one or more of the following factors may cause actual results
to differ materially from those which might be projected, forecast, estimated or
budgeted by the Company in such forward-looking statement or statements:

DEVELOPMENT OF NEW TECHNOLOGY; DEPENDENCE ON THE LIFEGUIDE SYSTEM; UNCERTAINTY
OF MARKET ACCEPTANCE

          The Company's future success is entirely dependent upon the successful
development, commercialization and market acceptance of the LifeGuide System,
the development of which is ongoing and the complete efficacy of which has not
yet been demonstrated.   The Company has tested benchtop prototypes and
commercial prototypes of the LifeGuide Meter and the LifeGuide Key.  However,
there can be no assurance that unforeseen problems will not occur in research
and development, clinical testing, regulatory submissions and approval, product
manufacturing and commercial scale up, marketing or product distribution.  Any
such occurrence could materially delay the commercialization of the LifeGuide
System or prevent its market introduction entirely.  Further, even if
successfully developed, the commercial success of the LifeGuide System will
depend upon its acceptance as an accurate, reliable and cost-effective
alternative to existing blood glucose monitoring techniques.  The glucose
monitoring industry is currently dominated by several companies with established
markets and distribution channels.  Because the proposed LifeGuide System will
represent a new practice in the monitoring of glucose levels, the Company is
unable to predict how quickly, if at all, its products will be accepted by
members of the medical community and people with diabetes.  There is no
assurance that the Company will ever derive substantial revenues from the sale
of the LifeGuide System.

HISTORY OF OPERATING LOSSES; ACCUMULATED DEFICIT; EXPECTATION OF FUTURE LOSSES

          The Company has generated no revenue and has sustained significant
operating losses each year since its inception.   As of December 31, 1997, the
Company had an accumulated deficit of $30.4 million.  Net losses for the years
ended December 31, 1995, 1996 and 1997 were approximately $5,048,730, $9,083,432
and $11,564,391, respectively, and the Company expects such losses to continue
through 2000 and to increase at least through the end of 1999.  The Company may
never generate substantial operating revenue or achieve profitability.  The
Company's ability to generate revenue from operations and achieve profitability
is dependent upon successful development, regulatory approval and
commercialization of the LifeGuide System and the Company's successful
transition from a development stage company to a fully operating company.

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LIMITED CLINICAL TESTING EXPERIENCE; UNCERTAINTY OF OBTAINING FDA CLEARANCES

          Testing of the LifeGuide System has been performed on benchtop
prototypes and hand-held prototypes solely by Company personnel under controlled
circumstances.  The Company expects to make commercial prototypes of the
LifeGuide System available for clinical testing by people with diabetes as soon
as the LifeGuide Meter development is complete, and to use the data derived from
this testing to support a 510(k) notification with the Food and Drug
Administration ("FDA") to permit commercialization of the LifeGuide System in
the United States.  There can be no assurance that the Company will not
encounter problems in clinical testing which will cause the Company to delay
commercialization of the LifeGuide System, and there can be no assurance that
the LifeGuide System will prove to be accurate and reliable on a consistent
basis.  Even if accurate and reliable, there can be no assurance that such
testing will show the Company's product to be safe or effective.  There can also
be no assurance that the required FDA clearances will be obtained on a timely
basis or at all.  The Company believes and has confirmed with the FDA  that the
LifeGuide System will be eligible for a 510(k) clearance from the FDA.  Still,
there can be no assurance that the required FDA clearances or approvals will be
obtained on a timely basis or at all.  The Company has no experience in
obtaining regulatory approval.

HIGHLY COMPETITIVE MARKETS; RISK OF TECHNOLOGICAL OBSOLESCENCE

          The glucose monitoring industry is characterized by continuously
evolving technology and intense competition, and the market is currently
dominated by several companies with established products and distribution
channels.  In addition, other companies are attempting to develop minimally- or
non-invasive glucose monitoring products competitive with the proposed LifeGuide
System.  There can be no assurance that the Company's competitors and potential
competitors will not succeed in developing or marketing technologies and
products that will be more accepted in the marketplace than the proposed
LifeGuide System or that would render the Company's technology and proposed
device obsolete or noncompetitive. In addition, numerous researchers are
investigating alternative treatments or cures for diabetes.  If any of these
efforts are successful in reducing the complications associated with diabetes
and can be cost-effectively provided to people with diabetes, the need for the
Company's products could be mitigated or become entirely nonexistent.

          Most of the Company's competitors and potential competitors have
substantially greater capital resources, research and development staffs and
facilities than the Company.  In addition, most of the Company's competitors and
potential competitors have substantially greater experience than the Company in
research and new product development, obtaining regulatory approvals and
manufacturing and marketing medical devices. Many of the Company's potential
competitors have already entered into distribution and marketing agreements with
major marketing partners.   Competition within the glucose monitoring industry
could also result in reductions of the prices of the Company's products and the
use of purchase incentive programs that could adversely affect the Company's
revenues and profitability.

LACK OF MANUFACTURING CAPABILITY; DEPENDENCE ON CONTRACT MANUFACTURERS AND
SUPPLIERS

          The Company's LifeGuide System is still in development and the Company
has not yet created or manufactured a commercial prototype of its device.  To be
successful, the Company must manufacture the LifeGuide System in compliance with
regulatory requirements, in a timely manner and in sufficient quantities while
maintaining product quality and acceptable manufacturing costs. The LifeGuide
Meter will be manufactured for the Company by an outside vendor from primarily
off-the-shelf components.  The LifeGuide Key will be assembled by the Company
from components to be purchased from outside suppliers.  The Company ordered the
initial automated manufacturing line for the LifeGuide Key in late 1996 and
anticipates producing initial LifeGuide Keys from this line in mid-1998.
However, one component of the LifeGuide Key is available from a single source.
If the Company were unable to obtain this component from its supplier, the
Company would be required to make modifications to its existing LifeGuide System
and to obtain an alternative component from an alternative supplier.  Any

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interruption in the supply of this component would have a material adverse
effect on the Company's business, financial condition and results of operation.
Manufacturers often encounter difficulties in scaling up production of new
products, including problems involving production yields, quality control and
assurance, component supplies and shortages of personnel.  There can be no
assurance, however, that the Company will be able to install and qualify an
initial automated manufacturing line or subsequent commercial productions lines
on a timely basis or at all.  There also can be no assurance that the Company
will be able to achieve and maintain product quality and reliability when
producing the LifeGuide System in the quantities required for commercial
operations or within a period that will permit the Company to introduce its
products in a timely fashion, or that the Company will be able to assemble and
manufacture its products at an acceptable cost.

DEPENDENCE ON PATENTS AND PROPRIETARY TECHNOLOGY

          The Company's success will depend in part on its ability to obtain
patent protection for its proposed products and processes, to preserve its trade
secrets and to operate without infringing the proprietary rights of third
parties.  As of the date of this Form 10-K, the Company has two issued United
States patents relating to the methods of drawing an ISF sample from the outer
layers of the skin, and five additional United States Patent Applications
directed toward various aspects of the technologies underlying the LifeGuide
System.  There can be no assurance, however, that any additional patents will be
issued, that the scope of any patent protection granted to the Company will
prevent competitors from introducing products competitive with the LifeGuide
System or that any of the Company's patents will be held valid or enforceable if
subsequently challenged.  Patenting medical devices involves complex legal and
factual questions, and there is no consistent policy regarding the breadth of
claims which issue pertaining to such technologies.  The Company also relies
upon unpatented trade secrets, and no assurance can be given that others will
not independently develop or otherwise acquire unpatented technologies
substantially equivalent to those of the Company.  In addition, even if the
patents for which the Company has applied are ultimately issued, other parties
may hold or receive patents that contain claims covering the LifeGuide System
and which may delay or prevent the sale of the LifeGuide System or require
licenses resulting in the payment of fees or royalties by the Company in order
for the Company to carry on its business.  There can be no assurance that needed
or potentially useful licenses will be available in the future on acceptable
terms or at all.

          There has been substantial litigation regarding patent and other
intellectual property rights in the medical device industry.  Litigation could
result in substantial costs to and a diversion of effort by the Company, but may
be necessary to enforce any patents issued to the Company, protect trade secrets
or know-how owned by the Company, defend the Company against claimed
infringement of the rights of others or determine the scope and validity of the
proprietary rights of others. The Company is not currently a party to any patent
or other litigation. The Company routinely monitors patent issuances by others
in its industry, and as a result became aware in 1996 of a patent that may
relate to a feature of the LifeGuide System.  The Company engaged outside patent
counsel, Moore & Hansen, to review the patent, and such counsel rendered its
opinion to the Company that the patent is not infringed by the Company's
technology.  In addition, such counsel advised the Company that if the patent
was challenged, those claims which the Company believes may apply to the
LifeGuide System would be likely to be held invalid based on the existence of
prior art not cited by the patent examiner.  There can be no assurance, however,
that the holder of the patent will not pursue litigation which could be costly
to the Company.  An adverse determination in any litigation, including any
litigation commenced by the holder of the patent referred to above, could
subject the Company to significant liabilities to third parties, require the
Company to seek licenses from or pay royalties to third parties or prevent the
Company from manufacturing, selling or using its proposed products, any of which
could have a material adverse effect on the Company's business and prospects.

GOVERNMENT REGULATION; NEED FOR ADDITIONAL GOVERNMENT CLEARANCES

          Government regulation in the United States and other countries is a
significant factor in the Company's business.  The Company's products will be
regulated by the FDA under a number of statutes

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including the Federal Food, Drug and Cosmetic Act, as amended (the "FDC Act"),
the Safe Medical Devices Act of 1990 (the "SMDA"), and the FDA Modernization Act
(the "FDAMA"). Manufacturers of medical devices must comply with applicable
provisions of the FDC Act, the SMDA, the FDAMA and certain associated
regulations governing the development, testing, manufacturing, labeling,
marketing and distribution of medical devices and the reporting of certain
information regarding their safety. The FDC Act, the SMDA, and the FDAMA require
certain clearances from the FDA before medical devices, such as the Company's
proposed LifeGuide System, can be marketed.

          The Company has not obtained FDA clearance to market the LifeGuide
System.  The regulatory process may delay the marketing of new products for
lengthy periods, impose substantial additional costs and provide an advantage to
those of the Company's competitors who have greater financial resources.  FDA
marketing clearance regulations depend heavily on administrative interpretation.
There can be no assurance that interpretations made by the FDA or other
regulatory bodies, with possible retroactive effect, will not adversely affect
the Company.  There can be no assurance that any such clearance will be obtained
in a timely manner, or at all.  In addition, even if obtained, FDA clearances
are subject to continual review, and if the FDA believes that the Company is not
in compliance with the FDC Act, the SMDA, the FDAMA, or their associated
regulations, it can institute proceedings to detain or seize the Company's
products, require a recall, enjoin future violations and assess civil and
criminal penalties against the Company, its directors, officers or employees.
The FDA may also withdraw market approval for the Company's products or require
the Company to repair, replace or refund the cost of any device manufactured or
distributed by the Company.

          The FDC Act will regulate the Company's development, quality control
and manufacturing procedures by requiring the Company to demonstrate compliance
with current Good Manufacturing Practices as implemented through the Quality
System Regulation.  The FDA monitors compliance with these requirements by
requiring manufacturers to register with the FDA, which subjects them to
periodic FDA inspections of their manufacturing facilities.  In order to ensure
compliance with these requirements, the Company will be required to expend time,
resources and effort in the areas of production and quality control. If
violations of the applicable regulations are noted during FDA inspections, the
continued marketing of any products manufactured by the Company may be halted or
adversely affected.

          The Company also plans to eventually distribute its products in
several foreign countries.  The Company's products will be subject to a wide
variety of laws and regulations in these markets.   Generally, the extent and
complexity of the regulation of medical devices is increasing worldwide, with
regulations in some countries already nearly as exhaustive as those applicable
in the United States.  This trend may continue and the cost and time required to
obtain marketing approval in any given country may increase.  There can be no
assurance that any foreign approvals will be allowed on a timely basis or at
all.

LACK OF COMMERCIAL SALES OR MARKETING EXPERIENCE

          The Company has no experience in marketing the LifeGuide System and
has not yet entered into any marketing or distribution arrangements for its
proposed LifeGuide System.  In addition, many of the Company's potential
competitors have already entered into distribution and marketing agreements with
major marketing partners.  There can be no assurance that the Company will be
able to build a suitable sales force or enter into satisfactory marketing
arrangements with third parties when commercial potential develops, if ever, or
that its sales and marketing efforts will be successful.

DEPENDENCE ON KEY PERSONNEL; NEED FOR ADDITIONAL PERSONNEL

          The success of the Company is dependent in large part upon the ability
of the Company to attract and retain key management and operating personnel.
Qualified individuals are in high demand and are often subject to competing
offers.  The Company is currently searching for a successor to its President and
Chief Executive Officer, Frank Solomon.   It is expected that Mr. Solomon will
remain

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as President, Chief Executive Officer and Director until his successor commences
employment with the Company or September 30, 1998, whichever is sooner. There
can be no assurance, however, that the Company will be able to find a suitable
successor to Mr. Solomon in a timely fashion. In the future, the Company will
also need to add additional skilled personnel in the areas of research and
development, sales, marketing and manufacturing. There can be no assurance that
the Company will be able to attract and retain the qualified personnel needed
for its business. The loss of the services of additional members of the
Company's research, manufacturing or management group or the inability to hire
additional personnel as needed would likely have a material adverse effect on
the Company's business and prospects.

FUTURE CAPITAL REQUIREMENTS; NO ASSURANCE FUTURE CAPITAL WILL BE AVAILABLE

          At its current rate of spending, the Company's existing cash, when
combined with the unused portion of its line of credit, will be sufficient to
fund the Company's operations through approximately the third quarter of 1999.
The Company will require substantial additional funds to meet its working
capital requirements for a full-scale commercial introduction of its proposed
LifeGuide System.  In order to meet its needs beyond this period, the Company
may be required to raise additional funds through public or private financings,
including equity financings.  Adequate funds for the Company's operations,
whether from financial markets or from other sources, may not be available when
needed on terms attractive to the Company or at all.  Insufficient funds may
require the Company to delay, scale back or eliminate some or all of its
programs designed to facilitate the commercial introduction of the LifeGuide
System or prevent such commercial introduction altogether.

UNCERTAINTY OF THIRD PARTY REIMBURSEMENT

          Sales of the Company's proposed products in certain markets will be
dependent in part on availability of adequate reimbursement for personal glucose
monitoring products from third-party healthcare payors, such as government and
private insurance plans, health maintenance organizations and preferred provider
organizations.  Third party payors are increasingly challenging the pricing of
medical products and services.  There can be no assurance that adequate levels
of reimbursement will be available to enable the Company to achieve market
acceptance of the LifeGuide System or maintain price levels sufficient to
realize an appropriate return on its investment in the development or
manufacture of its proposed LifeGuide System.  Without adequate support from
third-party payors, the market for the Company's LifeGuide System may be
limited.

PRODUCT LIABILITY RISK; LIMITED INSURANCE COVERAGE

          The Company faces an inherent business risk of exposure to product
liability claims in the event that an end-user is adversely affected by its
prospective products.  The Company currently carries a product liability
insurance policy covering the Company's clinical testing with an aggregate limit
of $1.0 million.  Although the Company expects to obtain product liability
insurance coverage in connection with the commercialization of the LifeGuide
System, there can be no assurance that such insurance will be available on
commercially reasonable terms, or at all, or that such insurance, even if
obtained, would adequately cover any product liability claim.  A product
liability or other claim with respect to uninsured liabilities or in excess of
insured liabilities could have a material adverse effect on the business and
prospects of the Company.

          The foregoing review of factors pursuant to the Act should not be
construed as exhaustive or as any admission regarding the adequacy of
disclosures made by the Company prior to the effective date of the Act.

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