To OTC Journal Members:

Several days after we released our long anticipated Fall Profile on Astralis LLC it came to our attention the file size of the profile was too large for many systems. AOL zipped the file and made it impossible to read. Several other ISPs corrupted the file in other ways or simply deleted it.

We have altered the size slightly by making some changes you cannot detect, and we are republishing the profile in its entirety. Fortunately, the stock is down slightly from last Monday, making the entry level even more attractive.

AOL members should always use the first link at the top of the newsletter and read the web page version of the OTC Journal.

One Important Note: While many email environments corrupt the newsletter's appearance, it looks the same to everyone on the web page version. You can always access the web page version by going to the following web address: http://listserv.otcjournal.com. Please save this web address in your favorites, and simply go to it when you see the OTC Journal in your inbox. The current edition is available the moment it begins going out of our mail server. This way, you will always be able to view the newsletter in the manner intended regardless of your email capabilities.

We released our profile last Friday at $3.66. This stock traded poorly for the first two days hitting a low of $2.50, but has since regained more than half its initial loss. It closed Friday at $3.12, and has been climbing about $.10 per day. If you have not established a postition in this stock, we strongly  recommend you do so immediately. Here is the re-release:

New breakthrough drugs yield profits for investors with little regard for market conditions. Therefore, we have decided to introduce Astralis LLC to our Members. We believe this stock will trade well despite the recessionary market environment as more information unfolds to the investing public and the pharmaceutical community.

In our opinion, a perception will form that this new drug could generate billions in world wide annual sales. This level of demand could place the market value of the drug into the stratosphere. Eight years of clinical trials on three thousand patients provides evidence that this vaccine is truly a revolutionary breakthrough with enormous market potential.
 

Recommended Trading Strategy

After reading our profile, if you find you agree with our conclusions, we would like to offer our opinion on a prudent investment strategy. Decide how many risk dollars you are prepared to commit to the investment, and start with only 25% to 50%. If you are opposed to risk read no further. This investment opportunity is not for you.

Over the next 60 days, more evidence should unfold concerning the potential for this new drug. This could come in the form of investments or alliances with major pharmaceutical names, which would act as confirmation of the commercial potential. As each of these events occur, the risk factor diminishes.

If you make additional purchases at higher prices, your average cost will still be below the market. If the stock has traded lower it will provide a more attractive entry level. This is only a suggested strategy; the choice is yours.
 

Fall Profile: Hercules Development Group (OTC BB: HDVG)

• Stock Listing: OTC BB: HDVG (HDVG.OB on Yahoo!)
• Shares Issued and Outstanding: 37.5 million
• Estimated Public Float: 5 million
• Closing Price and Volume: $3.75 on 106,100 shares
• Market Capitalization: $130 Million
• Web Site: http://www.astralis.cc

Astralis has developed PSORAXINE (Psoriasis Vaccine), a new drug to treat the skin condition known as Psoriasis. According to the press release, 3,000 patients have been treated to date with PSORAXINE. 638 have experienced total remission, 1,000 have experienced 70% to 90% remission, and 96% have responded positively with no significant side effects.

The press release goes on to say Psoriasis affects 7 million people in the US and 180 million people worldwide, or about 3% of the population.

Very Important Risk Factor- Today, you can invest in shares of Hercules Development, but you are not buying shares of Astralis yet. Until this merger closes Hercules Development does not own Astralis or its major asset, the new vaccine PSORAXINE. The Editors of the OTC Journal have spoken with the Presidents of both Hercules and Astralis, and both have told us they are in complete agreement. It is only a matter of completing the paperwork, which will require approximately 30 days. This adds an additional risk factor, which only reinforces our suggestion for starting with 25% to 50% of the dollars you allocate for this stock.
 

The Discovery Of PSORAXINE- A Truly Remarkable Accident

In 1992, Dr. José Antonio O'Daly was working to develop a vaccine for leishmaniasis in Venezuela. Leishmaniasis is a potentially fatal disease spread by parasites. It is at epidemic proportions in 21 countries with 650 million people at risk world wide.

Dr. O'Daly was working with a Peptide injection he invented, which is a protein derived directly from the parasites, which carry the disease.

As Dr. O'Daly was making house-to-house calls to check on his test subjects in his field study, he came across one patient who, after having received a third dose of the vaccine, experienced complete remission of the psoriasis on her leg that had plagued her for 12 years.

This amazing day in 1992 could be considered the birth of PSORAXINE.
 

PSORIASIS- A Widespread Disease of the Skin

It is estimated Psoriasis effects about 3% of the population worldwide, which includes about 7 million potential patients in the United States and about 180 million people worldwide.

Symptoms range from a slight irritation to severe conditions associated with the onset of arthritis. Extreme cases can result in patients being confined to wheelchairs.

Psoriasis results from an overproduction of skin by blood cells associated with the immune system. Blood cells become confused and act as if the skin is damaged, manufacturing new skin cells at a much faster rate than required by undamaged skin.

Current treatments include locally applied corticosteroids, methotrexate, coal-tar ointment, or ultraviolet light. Each has varying degrees of success and some harmful side effects can occur. Approximately 56 million hours of work are lost each year by people who suffer from Psoriasis. About $2 billion is spent annually on treatment.

There are 42 drugs in various stages of approval process with the FDA. 25 are designed to relieve symptoms. 17 are systemic, but none is generating results even close to Psoraxine.

Currently, there is no cure for Psoriasis, only treatment to relieve the symptoms. Severe symptoms can be triggered by high stress periods within a patient's life as we described in our September 26th Edition. Lesions can become so painful that sufferers cannot function. The psychological damage associated with appearance is also crippling. Alongside are pictures of several different types of Psoriasis, which speak for themselves.
 

Eight Years of Study on Three Thousand Patients

Dr. O'Daly financed an eight-year study on 2,770 patients out of his own pocket. The studies followed strict FDA guidelines going through all three phases. It is now approved by the Venezuelan version of the FDA, and US clinical trials will begin soon.

In the world of pharmaceutical efficacy, the results have been startling. Of the 2,770 people in the study, results were as follows:

• 638 had 100% clinical remission.
• 1,000 patients had 70-99% remission.
• 2,660 had some time of positive response, anywhere from 10% to 90% remission.

The table depicted alongside shows the results of the study group using PASI (Psoriasis Area and Severity Index), commonly used by dermatologists to measure the extent of the disease.

Note that 74% of treated patients experienced over 70% reduction in symptoms, which falls well within FDA efficacy guidelines for the future. Only 4% of patients in the sample experienced less than 10% reduction in severity. These are considered exceptional results for a new drug.

Of the 2,770 patients in the study, 1,200 experienced no side effects, 1,000 experienced minor pain at the inoculation site, and about 1,000 had other types of minor discomfort. There were no detectable side effects aside from discomfort at the site of the injection.

Dr. O'Daly and Mike Ajnsztajn, the President of Astralis, believe the vaccine causes a cellular response, which "wakes up" the affected skin cells to their errant behavior.
 

One Picture Tells A Thousand Words- Look At Pictures of the Cases

Market Size

According to the table, 1.6 million patients will be treated for Psoriasis in the US in 2001. This would translate into 12.8 million dosages of Psoraxine, if it were available now. The company estimates the course of 8 doses will cost approximately $1600 or $200 per dose. This would equate to nearly $2.5 billion in sales for US patients being treated for Psoriasis today.

The table suggests the worldwide market for Psoraxine could be 32 million dosages by 2006. At $200 per dosage the numbers and profits go off the charts. If this product is eventually deployed on a worldwide basis, the numbers are staggering, and the market value of the vaccine far exceeds $1 billion.

Astralis has filed for patent protection in the US. In the next 12 months, Astralis will be filing many International patents. During the US Patent process, their technology is protected by International law.
 

Market Value and Commercial Introduction

To date, Psoraxine has only been approved for commercial use in Venezuela. To market the product in the US an FDA Approval is required. Astralis estimates this process will take five to six years and cost approximately $30 million.

Not surprisingly, the FDA will require an entirely new study following FDA guidelines. As a result of the Venezuelan data, the FDA has indicated a willingness to give the company 1B status upon filing of its NDA (New Drug Application). 1B will allow the company to test the vaccine on 20 to 80 humans to determine effect and toxicity. This will shorten the process by about 2 years.

However, the market will  value this revolutionary new drug many years before it is commercially available in the United States. The value will be determined by partnerships and alliances with major pharmaceutical companies. 
 

Because this vaccine is already fully developed with eight years of testing data, we are expecting arrangements with several major pharmaceutical household names. In most cases, large drug companies are investing in technology theories that could take years to develop. This case is unique as the drug is already developed, and it is being used everyday and working.

If every patient that seeks treatment for Psoriasis in the United States were to receive this vaccine, it would generate about $2.5 billion in sales. Only 22% of people with Psoriasis in the US actually seek treatment as therapies are expensive and relatively ineffective.
 

Conclusion

Despite rumors to the contrary, speculation is alive and well and living in the United States today. Speculation is what it's all about. If you're not afraid to take a risk, this investment opportunity is for you.

This is a dream opportunity for investors. How often do you get the chance to invest in technology that has the potential to go from $0 in revenues to tens of billions in several short years?

How much will pharmaceutical companies be willing to pay to be involved with this revolutionary new break through? More importantly, how much of this stock will you still own in 5 or 6 years when Psoraxine is commercially available worldwide and generating $3 billion in high margin sales? Where will the market value this company?

Of course this is all future speculation, which is why this opportunity is attractive. Those willing to take the risk at these levels, will enjoy the rewards if Psoraxine is commercially successful. An eight-year study on 3,000 patients reduces the risk significantly.

We believe that if and when the pharmaceutical industry accepts and recognizes Psoraxine, it will view its worth at $1 billion minimum. This could take 2 to 3 years, but it would put the stock at about $27 per share based on the current number of shares issued and outstanding. How much risk capital do you have available for a potential 8 bagger? The choice is yours.

Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://www.otcjournal.com/disclaimer.html for our full profiles and http://www.otcjournal.com/trading-alerts/disclaimer.html for Trading Alerts. MarketByte LLC has been paid a fee of $100,000 in cash and 100,000 options exercisable at $2.50 by the Investor Relations Group for publishing information on Astralis LLC for a period of one year. Fifty thousand options are exercisable immediately, and fifty thousand become eligible on April 1, 2002.

All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein.

The editor, members of the editor's family, and/or entities with which they are affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication.

The profiles, critiques, and other editorial content of the OTCjournal.com may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF OTCjournal.com.

We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.govand/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.