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                                                                    Exhibit 99.1

                              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(TM) System;
Uncertainty of Market Acceptance

     The Company's future success is entirely dependent upon the successful
development, commercialization and market acceptance of the LifeGuide(TM)
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(TM) Meter and the LifeGuide(TM) Key.
There can be no assurance that unforeseen problems will not occur in research
and development, clinical testing, regulatory submissions and clearance or
approval, product manufacturing and commercial scale up, marketing or product
distribution. Any such occurrence could materially delay the commercialization
of the LifeGuide(TM) System or prevent its market introduction entirely.
Further, even if successfully developed, the commercial success of the
LifeGuide(TM) 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(TM) 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(TM) 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, 1998, the
Company had an accumulated deficit of $41.5 million. Net losses for the years
ended December 31, 1996, 1997 and 1998 were approximately $9,083,432,
$11,564,391 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(TM) System and the Company's
successful transition from a development stage company to a fully operating
company.

Search for Corporate Alliance

     The Company announced in August 1998 it was exploring potential corporate
alliances that could expedite its search for a new glucose measurement system.
There can be no assurance that the Company will be successful in identifying and
evaluating suitable business alliances or opportunities or business
combinations. If such an alliance, opportunity or combination is identified,
there can be no assurance that the Board of Directors will be able to negotiate
a definitive agreement on terms favorable to the Company. If such an alliance,
opportunity or combination is identified and consummated, the Company could be
subject to risks associated with integrating its operations and personnel with
another company, which could result in a potential disruption to the business of
the Company and potential diversion of management time and attentions. There can
be no assurance that any glucose measurement 

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products or technologies of another company will be effectively assimilated into
or integrated with the Company's ISF sampling technology.

Limited Clinical Testing Experience; Uncertainty of Obtaining FDA Clearance or
Approval

     Testing of the LifeGuide(TM) 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(TM) Meter development is complete, and to use the data derived
from this testing to support either a 510(k) notification or Premarket Approval
application (PMA) with the Food and Drug Administration ("FDA") to permit
commercialization of the LifeGuide(TM) 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(TM)
System, and there can be no assurance that the LifeGuide(TM) 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(TM) System
will be eligible for a 510(k) clearance from the FDA. Still, there can be no
assurance that the FDA will not require a PMA or 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(TM) 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(TM) 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(TM) 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(TM) System in compliance
with regulatory requirements, in a timely manner and in sufficient quantities
while maintaining product quality and acceptable manufacturing costs. The
LifeGuide(TM) Meter will be manufactured for the Company by an outside vendor.
The LifeGuide(TM) Key will be assembled by the Company from components to be
purchased from outside suppliers. 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. The Company ordered the initial automated manufacturing line for the
LifeGuide(TM) Key in late 1996 and produced initial LifeGuide(TM) Keys from this
line in mid-1998. There can be no assurance, however, that the Company will be
able to install and qualify 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(TM) System in the quantities required for commercial operations or
within a 

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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(TM)
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(TM)
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(TM) System and which may
delay or prevent the sale of the LifeGuide(TM) 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 issuance by others in
its industry. There can be no assurance that third parties will not pursue
litigation that could be costly to the Company. An adverse determination in any
litigation 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 Clearance or Approval

     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"), 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 authorization from the FDA before medical devices, such as
the Company's proposed LifeGuide(TM) System, can be marketed.

     The Company has not obtained FDA clearance or approval to market the
LifeGuide(TM) 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 and approval 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 the
required clearance or approval will be obtained in a timely manner, or at all.
In addition, even if obtained, FDA clearance and approval decisions 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 clearance or 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.

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     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(TM) System and has
not yet entered into any marketing or distribution arrangements for its proposed
LifeGuide(TM) 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. In the future, the Company will need to add additional skilled personnel
in the areas of research and development 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 will be
sufficient to fund the Company's operations through approximately the first half
of 2000. The Company will require substantial additional funds to meet its
working capital requirements for a full-scale commercial introduction of its
proposed LifeGuide(TM) System. In order to meet its needs beyond this period,
the Company may be required to raise additional funds through strategic
alliances and 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(TM) 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(TM) System or maintain price levels sufficient to
realize an appropriate return on its investment in the development or
manufacture of its proposed LifeGuide(TM) System. Without adequate support from
third-party payors, the market for the Company's LifeGuide(TM) System may be
limited.

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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(TM)
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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