Dr. Viscomi, Moni and I thank you for your confidence and investment in FreMon Scientific. 2018 portends manufacturing and sales. Your 2017 investment resulted in the following achievements:

MILESTONES COMPLETED:

• 2 Prototype ZipThaw202™ devices built and tested,
• 28 Prototype ZipSleeve™ bags built and tested,
• 3 Patents filed in 7 major Global markets comprising more than 40 countries,
• Two pre-prototype financing rounds totaling $980,000 completed,
• FDA and CE Mark testing completed;
  • New York Blood Center completed operational tests:
    • 3 weeks over 3 months resulted in 100% test samples passing
    • Predicate device tests completed
  • Hermon Laboratories, an FDA certified independent lab, completed safety, mechanical, software and electromagnetic tests:
    • Safety tests 100% passed
    • Electromagnetic tests 100% passed
    • 8000-volt destructive tests 100% passed
    • Software tests 100% passed
    • ISO documentation 100% completed
    • Usability tests completed
    • Operating Manuel completed
    • Risk analysis and completed
  • In Process:
• FDA 510(k) application – submission January 2018
• CE Mark application – submission January 2018
• Production Engineering contract agreed with ARAN R&D (an FDA certified medical device design and engineering firm).

ORGANIZATION:

• Distribution Agreement signed for Israel and Palestine Distribution,
• United Kingdom distribution agreement in negotiation,
• North America distribution agreements in negotiation with 8 established blood and tissue bank and transfusion center distributors,
• Distribution agreement with Turkey and Turkic language regions affirmed,
• Distribution agreement with European Union and Middle East countries affirmed,
• San Diego Blood Bank as regional training center discussions in process,
• CEO search initiated,
• Current round funding 2/3 completed – closing anticipated January 2018.

2017 was productive for FreMon Scientific: ZipThaw202™ and ZipSleeve™ design and engineering successfully completed; Early market response positive; Risk has been substantially reduced; Outlook for success greatly increased. With the successful closing of the current round of financing in January FreMon Scientific will begin manufacturing and sales in Q3/4, 2018.

Dr. Viscomi, Moni Shavit and I welcome your comments, thoughts and investment.

Best to All in 2018.

Respectfully submitted: January 3, 2018

Fred Thacher, CEO & Co-founder                 Moni Shavit, President & Co-founder

Salvatore G. Viscomi, MD, SVP, Chief Medical Officer