MEDISCIENCE TECHNOLOGY CORP.


In parallel and while building on our prior accomplishments, the Company
continues to address several critical unresolved issues, the most important of
which is the lack of adequate funding to maintain business momentum and properly
leverage our intellectual property assets; the resolution of this issue
continues to be a principle focus and the highest priority of management. In the
absence of the availability of such financing on a timely basis, the company may
be forced to materially curtail or cease its operations. We are faced with a
broad market dominated by pessimism and a desire for security in investment that
we intend to overcome.

As previously reported, the Company had an outstanding financial obligation to
the University for work conducted during the period August, 1997 through July,
1998. In 1999, an agreement was reached to extend the time for payment until
June 30, 2000. We have meet this deadline, reducing the debt significantly and
successful, negotiated an additional time extension. The Company and the City
University have a long and productive history of cooperation and are committed
to continuing and building upon the relationship that has been so beneficial to
both parties. We have every confidence that all issues will be resolved without
impacting either the structure of that relationship or our development critical
path.

The Company continues to be eligible to receive additional benefits under the
State of New Jersey Technology Business Tax Certificate Program through the sale
of its New Jersey Net Operating Loss carryover. The Company applied for and
received such benefits and intends to apply successfully for two more years. Our
intention is use any proceeds derived to fully fund the payment of our
obligation to the City University. The Company has already entered into an
agreement on very favorable terms with a New Jersey corporate taxpayer to
purchase the NOL subsequent to State approval. (This NJ tax benefit allows
emerging technology and biotechnology businesses to sell their unused Net
Operating Loss (NOL) carryover to any corporate taxpayer in the state for no
less than 75% of benefits -- our sale contract was for 83.3%)

We intend that the year 2001 will mark a turning point for the Company as we
focus on achieving the following key objectives: 1) complete financing
activities and fully initiate business plan implementation; 2) complete
development and testing of a second generation imaging system with fiberoptic
capability to support clinical trials for product registration; 3) Insure the
continuity of intellectual property ownership and basic research programs; and
4) continue to evaluate and prioritize new areas of opportunity for our
technology.

We and our development partners firmly believe that the platform technology
developed by Mediscience and the City University over the past ten years is
paradigm shift, and has the potential to significantly impact both the quality
and the cost of healthcare. The Company and the City University have developed
and refined working prototypes that have been validated in both pre-clinical and
clinical trials at leading medical institutions (e.g. Sloan Kettering Cancer
Center, Cornell University New York Medical Center, etc.); we are now ready to
begin the process of product commercialization. With your support, we will make
every effort to ensure that the full potential of our technology is realized,
and that our company plays a leadership role in its introduction to the
healthcare market.

For your continued information we have developed and launched a Mediscience web
site MEDISCIENCETECH.com


Peter Katevatis, Esq.
Chairman