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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 June 30, 1997, the Company had an
accumulated deficit of $23.9 million. The Company expects such losses to
continue for the next several years.  The Company may never 

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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.  After the Company has completed the design of the LifeGuide
System and demonstrated the efficacy of the product, the Company expects to make
commercial prototypes of the LifeGuide System available for clinical testing by
people with 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, 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.

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LACK OF MANUFACTURING CAPABILITY; DEPENDENCE ON CONTRACT MANUFACTURERS AND
SUPPLIERS

The Company's LifeGuide System is still in development.  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
having this line delivered to the Company in 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.


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-Q, 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 that issue for 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 

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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 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 

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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 sometime during the second half of 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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