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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, 1996, the
Company had an accumulated deficit of $18.9 million. Net losses for the years
ended December 31, 1994, 1995 and 1996 were approximately $2,492,220, $5,048,730
and $9,083,432, respectively, and the Company expects such losses to continue
through 1999 and to increase at least through the end of 1998. 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.

LIMITED CLINICAL TESTING EXPERIENCE; UNCERTAINTY OF OBTAINING FDA CLEARANCES

     Testing of the LifeGuide System has been performed on benchtop prototypes
and commercial prototypes solely by Company personnel under controlled
circumstances. The Company expects to make commercial prototypes of the
LifeGuide System available in 1997 for clinical testing by people with

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diabetes 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. 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 late 1997.
However, one component of the LifeGuide Meter is available from a single source,
as is one component of the LifeGuide Key.  In the event that the Company is
unable to obtain either of these components from their respective suppliers, the
Company would be required to make modifications to its existing LifeGuide System
and to obtain alternative components from alternative suppliers.  Any
interruption in the supply of either of these components 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 that the Company will be able to achieve and maintain product quality
and reliability when producing the LifeGuide System in the quantities required
for commercialization, nor that the Company will be able to assemble and
manufacture its products at an acceptable cost.

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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/A, the Company has one issued United
States patent 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 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 including the Federal Food, Drug
and Cosmetic Act, as amended (the "FDC Act"), and the Safe Medical Devices Act
of 1990 (the "SMDA"). Manufacturers of medical devices must comply with
applicable provisions of the FDC Act and the SMDA 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. Both the FDC Act and the SMDA 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

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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 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. 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. 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. In the future, the Company will 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 one
or more 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

     The Company expects that its existing cash will be sufficient to fund the
Company's operations until second quarter 1998. The Company may 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.

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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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