Exhibit 99
February _, 2004
Dear Stockholder of Nocopi Technologies, Inc.:
I am pleased to take this opportunity to update you about some of the important
activities Nocopi Technologies, Inc. (Nocopi) has been involved in this year. It
is my hope that these developments will be of interest to you as Nocopi moves
forward.
Settlement of Lawsuit
On June 4, 2003, we announced the settlement of the arbitration
proceeding commenced with our former European Distributor Euro-Nocopi,
S.A. (Euro). Under the terms of the settlement, Euro has paid $900,000
to Nocopi and will pay an additional $200,000 in the future for back
royalties and all other matters in dispute between the two companies,
as well as the termination of Nocopi's 18% ownership of Euro. Euro's
exclusive European license will continue in effect.
New Facility
In September 2003, we moved our company to a new facility located at 9C
Portland Road, West Conshohocken, PA 19428. We were fortunate to find a
location that was better suited to our production requirements but also
reduced our monthly expenses.
New Staff
In an effort to increase our talent level, Nocopi has replaced
employees with two new additions to our staff, JoAnn Domanski, Director
of Research & Development, and Kevin Stevenson, Plant Manager. JoAnn
and Kevin have both rejoined Nocopi. Both JoAnn and Kevin bring a
wealth of experience and knowledge back to Nocopi.
Current Business Activities
Nocopi is primarily engaged in the development and distribution of
document security products and the licensing of its authentication
technologies in the United States and foreign countries. The Company's
document authentication technologies are useful to businesses desiring
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to authenticate a wide variety of printed materials and products. These
include the Nocopi Copimark technology, providing the ability to print
invisibly on certain areas of a product. The invisible printing can be
activated or revealed by use of a special highlighter pen, when
authentication is required. A related technology is Nocopi's Rub &
Reveal system, which permits the invisible printing of an
authenticating symbol or code that can be revealed by rubbing a
fingernail over the printed area. Nocopi's clients include many Fortune
500 companies. Products incorporating Nocopi technology range from
security documents, such as tickets, checks and coupons to fragrances,
cosmetics, fashion apparel, pharmaceuticals, tobacco products,
automotive parts and many more. Even with all the changes in 2003, we
have been successful in acquiring some new accounts and have renewed
agreements with existing accounts in the United States.
New Business Opportunity
We will be applying some of our technologies for new products and
services in the non-security market. I want to emphasize these new
products or services in no way compromise the confidentiality of the
security and authentication activities we perform for our existing
accounts worldwide. We will be launching this new product line at the
American International TOY FAIR in February 2004 to be held in New York
City. We will tell you more about this new and exciting activity in our
next newsletter.
External Activities
o Nocopi Technologies, Inc. Participates in National FDA Public
Meeting on Anticounterfeit Drug Initiative
Because Nocopi is a well-known company in the business of developing
solutions against counterfeiting, product diversion, document security
and authentication via patented technologies (including invisible inks,
color changing inks, reactive thread and document security paper
products, we participated in a national public meeting held by the US
Food and Drug Administration (FDA) on FDA's Anticounterfeit Drug
Initiative held October 15, 2003 in Bethesda, MD.
I presented a statement for the official FDA record and in it I said:
"We believe that both overt and covert security can be blended in such
a manner as to help the drug manufacturer track and trace exactly where
their products are going. Our technologies at Nocopi allow for the
interruption of diversion channels, help to authenticate the product as
not being counterfeit, and all at a very small cost per unit."
I further added, "Nocopi is encouraged by the FDA's concern about the
counterfeit and diverted pharmaceutical problem. For many years a
myriad of other products have been protected against such problems, and
now our own health and well-being must also be."
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Concurrent with the FDA meeting, a vendor display of Nocopi's
Anticounterfeit technologies was provided for the benefit of the FDA
and the meeting attendees. I was extremely pleased by the attention our
exhibit received.
Nocopi's meeting participation was highlighted by a personal visit to
our exhibit by FDA Commissioner Mark McClellan and Senior Deputy
Commissioner for Policy William Hubbard, the chair of the FDA
Anticounterfeiting Panel. Commissioner McClellan participated in a
demonstration and expressed to me and publicly much interest in
Nocopi's anticounterfeit and diversion technologies. Nocopi's exhibit
was well attended by the media and meeting attendees. I look forward to
participation in future meetings of this nature.
o Participation in the Toy Industry Association American International
TOY FAIR
I am pleased to announce that Nocopi will participate in the
International TOY FAIR show scheduled for February 15-18, 2004
at the Jacob K. Javits Convention Center in New York City, At
this time, we will be launching a new product. TOY FAIR is the
largest toy trade show in the United States. Owned and managed
by Toy Manufacturers of America, it is the premier marketing
event of the year for the worldwide toy industry. Exhibitors
include manufacturers, distributors, importers and sales
agents from the U.S. and around the world. It is attended
annually by 20,000 buyers and is also one of the most
extensively covered trade shows in the U.S.
This concludes our brief report of our activities to you. We intend to update
you periodically about current and new developments.
I hope that you have found this newsletter interesting and informative. My best
wishes to you for a safe, healthy, and successful New Year.
Sincerely,
Michael A. Feinstein, M.D.
Chairman, Board of Directors
Chief Executive Officer
Nocopi Technologies, Inc.
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FORWARD-LOOKING INFORMATION
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The foregoing contains forward-looking information within the meaning of The
Private Securities Litigation Act of 1995. Such forward-looking statements
involve certain risks and uncertainties (a summary of which may be found in
Nocopi's Annual Report on Form 10-KSB for the year ended December 31, 2002 and
its Quarterly Report on Form 10-QSB for the quarter ended September 30, 2003, in
each case, under the caption "Uncertainties That May Affect the Company, its
Operating Results and Stock Price"). Actual results may differ materially from
such forward-looking statements. The Company does not undertake to publicly
update or revise its forward-looking statements even if experience or future
changes make it clear that any projected results (expressed or implied) will not
be realized.
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