Connections NetMed, Inc.

NetMed, Inc. has no business activities. During the fiscal year ended December 31, 2001, the Company's sole business activity, through its majority-owned subsidiary, OxyNet, Inc., involved research and development activities associated with a proprietary ceramic-based technology for separation of oxygen from ambient air and other gases. These activities were suspended effective December 31, 2001, pending efforts to locate a prospective licensee or development partner. The Company is continuing efforts, begun in 2001, to evaluate other business opportunities, which included preliminary investigation and due diligence. These efforts have not, in the judgment of the Company's management, produced an attractive merger or acquisition candidate. The Company is seeking a candidate with a proprietary product or service, which may be in the development stage, and offers an opportunity to realize these objectives.