Pulse

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On January 12, 2007, AJ Acquisition I LLC d.b.a. National Paintball Supply, and its parent, AJ Intermediate Holdings LLC (collectively “NPS”), filed a lawsuit in the United States District Court for the District of New Jersey against Procaps L.P. (“Procaps”) and two of its distributors, alleging various infringements of NPS’ alleged intellectual property rights by
Procaps' DXS PULSE Loader.

Procaps vigorously disputes all of these allegations. Procaps believes that NPS’ true motive is not protection of any alledged intellectual property rights. Instead, Procaps believes this is nothing more than NPS’ attempt to use the legal system to overcome stiff competition from Procaps’ superior DXS Loader product, because NPS has been unsuccessful in doing so in the marketplace.

Just minutes before midnight on Wednesday February 7th, and before Procaps’ answer to their Complaint was due, NPS amended its complaint at the last minute to add additional defendants, and filed a motion seeking a temporary restraining order requesting that the Court stop Procaps from selling the PULSE loader until the matter could be heard more fully. Less than 24 hours later on Thursday February 8th, the Court issued a Temporary restraining order so that Procaps and the other named distributors would temporarily cease selling the DXS PULSE loader. Procaps will soon have an
opportunity to fully present its evidence to the Court, and Procaps is fully confident that the order will be lifted at that time, and the DXS PULSE loader will again be available to Procaps’ loyal customers.

More information will be provided about the availability of the DXS PULSE (tm) Loader as soon as it is available.