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  May 13, 2008  
  Volume IX, Issue 35  
Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

To OTC Journal Members:
 

eFood Update: IP Plentiful- Sales "Moderate"

After reading today's rather comprehensive update from eFoodSafety, one word popped into my head- Truthful- this is probably a darn good 25,000 foot view of where the company is in the process of commercializing it's IP (Intellectual Property) portfolio, and filling us in on where they are with the products that are commercially available today.

In my view, in the short term the stock price is all about the success or failure of their direct marketing initiatives. So far, they have launched direct marketing campaigns for Cinnergen, a product I use everyday, and Cinnechol, a natural product clinically proven to reduce cholesterol.

According to today's press release, the "direct-response campaigns have shown an initial moderate increase in product sales". The press release states the commercials have been more successful than expected generating interest, but falling short of expectations generating sales. Another words, consumers are window shopping but not making a buying decision. Clearly, the call to action needs to be more effective. Perhaps they need to put more emphasis on the effectiveness of the products as proven in clinical trials. I'm not sure, but I'm sure modifying the message to get a stronger result is part of the direct response process for success.

In my view, EFSF has learned the public is genuinely interested in these natural solutions for metabolizing carbs and lowering cholesterol. Respond2 simply has to adjust the call to action to yield sales improvements.

PurEffect, the first real competitor to monster commercial success Proactive, is described as being close to commercial release via informercial and celebrity endorsement.

Here's what I know about PurEffect. Not all the celebrity endorsers have been disclosed. However, the informercials have been produced, and therefore the celebrities must have been paid.

In the arrangement with CK41- the PurEffect licensee, EFSF was not required to put up any capital for production of the infomercials or media buys. This is a profit sharing arrangement. EFSF owns the technology, and CK41 has the responsibility to do everything else. They split up the profits.

I'm not exactly sure what "soon" means, but it seems to me if CK41 has invested the production capital, it eventually has to launch the product. If properly executed, PurEffect strikes me as a potential blockbuster commercial product with plenty of upside. It's got to be just a question of time before the product starts appearing on TV networks.

Oraphyte is another product I believe has the potential to be commercially meaningful to the company. This is a natural product designed to eradicate Nematodes- parasites that do billions in crop damage every year. In today's world with growing demand for food, Oraphyte represents a wild card for the stock price. Today, we learned the studies at the University level continue, with a fourth University starting a highly specific study. EFSF suggests to investors it will take another 3 to 4 months before studies are concluded and a licensing process can start. According to the press release, EFSF is hopeful a licensing arrangement can be reached towards the end of 2008.

The remainder of the portfolio of natural products is covered. You can't predict if and/or when any of these products will fall into the public spotlight. However, all of these products address very high profile challenges in today's modern world with natural solutions.

I believe the stock is a speculative buy right now, and I'll tell you why. Let's call a spade a spade. Today's comprehensive update was not exactly earth shattering. There weren't any big upside surprises. We learned the direct marketing campaign is yielding some results, but far short of what it could.

Here's my observation. Any disappointment you glean out of today's frank and comprehensive update is already priced into the stock. As you can see, EFSF has now made a triple bottom on it's multi year low, and each time it has arrived at these levels it has turned around and made an effort to work higher.

Here's the beauty of today's level. I believe you can pick this stock up right now with a pretty tight stop of $.15 or so. Short term upside is probably about 30%- downside- limit yourself to 10%. Not a bad risk/reward ratio.

For longer term investors- I'm sure you are going to see top line and bottom line numbers improve from here. The next quarterly numbers will be out in mid June, and they will only include results from the first month of the DR campaign. The first month will be far from conclusive.

All in all, I believe EFSF is more likely to move up from here. The company is embroiled in the process of providing natural solutions to difficult health problems, and there certainly is a mega trend amongst consumers to move away from consuming unnatural chemicals with harmful side effects.

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com

For your review: Today's press release in it's entirety:
 

Press Release Source: eFoodSafety.com, Inc.

eFoodSafety Provides Product Update

Tuesday May 13, 9:30 am ET

Offerings Available Across Several Distribution Channels, Others in the Pipeline

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--eFoodSafety.com, Inc. (OTCBB: EFSF, www.efoodsafety.com), a researcher, developer, and marketer of whole foods and nutraceutical products, provides its shareholders with an update on its products and product pipeline.

“This is an exciting and active time for eFoodSafety as we recently initiated a comprehensive and robust direct-response campaign for two of our products with two more expected to launch in the coming months,” says Patricia Gruden, CEO of eFoodSafety. “In the meantime, we continue our research and development activities for many of our other products. We are committed to focusing our efforts on those products that we believe have the greatest potential to address major health concerns in mass markets.”

Ms. Gruden continues, “With so many products in development and others on the market, we believe it is a timely occasion to update our shareholders, consumers, and other interested parties, as to our progress. To facilitate the update, we have provided information on our lead products in development as well as those that are currently on the market.”

Lead Products in Research & Development:

Citroxin™: Most recently, Citroxin was tested for its ability to eradicate the H5N1 strain of the bird flu in chick embryos. The test, conducted at Chulalongkorn University in Thailand, showed 68% efficacy. Based on the success of this initial study, the company will initiate a next round of testing in live animals with forms of flu that closely resemble human strains of the disease. These tests will be conducted at a university in the United States that is nationally recognized for its field studies in bird flu. 

According to the World Health Organization, there have been 241 deaths in humans in 382 reported cases of the H5N1 strain of avian influenza worldwide from 2003 to the present. In addition to the human implications of the virus, bird and farm animals are also at risk from infection. As an early entrant in the market, eFoodSafety recognizes potential to use its formula in the mass market as a solution against the virulent influenza.

-- 

Citroxin O2™: eFoodSafety’s researchers have completed the EPA required testing against the six major bacteria: (E-coli, Listeria, Pseudomonas, Salmonella, Staphylococcus, and Streptococcus), as well as the H95N strain of avian influenza. Citroxin O2 is currently being tested on chick embryos at Chulalongkorn University in Thailand.

-- 

Proxorin™: Clinical testing has been initiated for its use as a natural antibiotic/anti-microbial against common bacterial pathogens. This testing is being conducted at a major U.S. university, and the company plans to initiate clinical trials on the formula to determine its efficacy in three to six months. The formula is derived from Citroxin, but differs in its time-release capabilities, which allow it to more effectively deliver its ingredients throughout the body. 

As a natural alternative, Proxorin can offer several advantages over common drug-based antibiotics, which dominate the large market. As the company continues to advance the R&D process for this formula, it expects to create various forms of the product, including a trans-dermal cream and a high-potency pill for oral ingestion.

-- 

Occusyn™: Informal human case studies have indicated that Occusyn, an integral component of the company’s proprietary Lyme disease protocol, has demonstrated 100% efficacy against Lyme disease. The company plans to initiate additional human clinical trials within the next six to nine months. Lyme disease costs society approximately $1 billion in direct and indirect costs per year. With antibiotics currently the treatment of choice for the disease, the company hopes to offer new all-natural advantages to the market in an effort to combat the disease.

-- 

OraPhyte™: U.S. Department of Agriculture tests have shown OraPhyte to be effective at eradicating nematodes, a parasite commonly found in freshwater, marine, and terrestrial environments that are known to be harmful to plants. Three major U.S. universities have conducted year-long agricultural studies on the product, and after their positive experiences in treating nematodes affecting plants or food crops, they have decided to continue testing. Furthermore, a fourth major university will also begin testing the product within its agricultural department undergoing crop-specific research. 

Crop damage attributable to nematodes accounts for significant economic losses in the multi-million dollar range. The purpose of the additional testing is to refine the product and further identify specific uses. The licensing agreement can then be use-specific. The company has been informed that the testing should be completed within the next 3-4 months and anticipates that one or more licensing agreements may be finalized before year-end.

“In addition to our intensive R&D efforts, eFoodSafety has gained significant traction on the marketing front,” Ms. Gruden adds. “We recently launched two direct-response campaigns, a dramatic accomplishment, as we mobilize from an R&D company to an R&D company that also markets its products to consumers.”

Products Available to Consumers or Nearing Retail Launch:
--
Cinnergen™: The company recently launched a direct-response marketing campaign for Cinnergen™ with Respond2 Communications Inc, a leading direct-response agency. The two companies will continue to refine the campaign to achieve maximum results and audience exposure. Shareholders can view the campaign at www.cinnergendirect.com. According to the American Diabetic Association, the annual economic impact of diabetes is over 170 Billion dollars annually. Cinnergen presents another option for consumers to help regulate blood sugar levels.

-- 

Cinnechol™: Cinnechol’s direct-response marketing campaign also recently launched. The commercial can be viewed at www.cinnechol.com. eFoodSafety continues to work with Respond2 Communications to maximize the effectiveness of the campaign. Given the market pressure on prescription drugs that have come under scrutiny for potential side effects, the company believes that consumers may be increasingly apt to try all-natural solutions as an alterative. 

The results to date of the direct-response campaigns have shown an initial moderate increase in product sales. Review of the data collected to date has indicated that the number of visitors to the respective internet sites from the commercials has far exceeded expectations. However, the company and Respond2 are making additional modifications to the campaigns to bring about a higher conversion of sales with respect to both internet and call volume received.

-- 

NumaDerm™: In another important development, the company expects the NumaDerm direct-response campaign to launch in the next 1-2 months. The product targets a mass consumer base, and its broad appeal is expected to help the company gain additional traction in its sales.

-- 

PurEffect™: PurEffect will soon be available to consumers through a direct-response marketing campaign that will include celebrity endorsements. As a four-step treatment process for acne, the product provides a front- to back-end solution.

-- 

Immune Boost Bars™: ImmuneBoost Bars are currently available online at www.immuneboost.com. Through the company’s relationship with CPG Focus Consulting, it is in discussions with major national retailers to expand its market presence.

-- 

Talsyn™: Talsyn is currently available to patients through physicians. eFoodSafety has also incorporated Talsyn’s formula in some of its other products, such as PurEffect and NumaDerm, to serve as a complement to help repair scarring.

“It is important to highlight that we are committed to growing and advancing our business as a whole, including both the R&D processes as well as the consumer rollout of our products,” concludes Ms. Gruden. “For a company the size of ours to successfully develop, manage, and market such a large and varying suite of products, serves as an indication of the scope of our capabilities and pledge to continue driving growth. We look forward to continuing to update our valued shareholders on a regular basis.”

About eFoodSafety.com

eFoodSafety.com, Inc., based in Scottsdale, Arizona, is dedicated to improving health conditions around the world through its innovative technologies. Among eFoodSafety products currently available:

Citroxin™: an environmentally safe sporicidal product formulated entirely of food-grade components that kills six major bacteria as well as avian influenza.

Cinnergen™: a clinically researched, non-prescription liquid whole food nutritional supplement that promotes healthy glucose metabolism.

Cinnechol™: a multi-faceted nutritional supplement specifically designed to naturally promote healthy cholesterol and triglyceride levels without causing any side effects, as well as enhance overall cardiovascular health.

PurEffect™: an anti-acne skin care system.

Immune Boost Bar™: a non-dairy, no refined sugar, all-natural and comprehensive multi-nutrient product that helps fortify the body’s immune system and is available in four delicious flavors: chocolate, oatmeal-raisin, chocolate mint and peanut butter.

Talsyn™: a product that has been clinically proven to facilitate and improve the appearance, redness and strength of scars.

Please visit the company’s website at: http://www.efoodsafety.com.

Safe Harbor Forward-Looking Statements

Statements contained in this release that are not strictly historical are “forward-looking statements.” Such forward-looking statements are sometimes identified by words such as “intends,” “anticipates,” “believes,” “expects,” and “hopes.” The forward-looking statements are made based on information available as of the date hereof, and the Company assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause the Company’s actual results to differ materially from those in these forward-looking statements. Such risks and uncertainties include but are not limited to demand for the Company’s products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for the Company and other factors that may be more fully described in reports to shareholders and periodic filings with the Securities and Exchange Commission.

Contact:

Redwood Consultants, LLC
Jens Dalsgaard, 415-884-0348
or
The Investor Relations Group
212-825-3210
Investor Relations:
Michael Crawford
mcrawford@investorrelationsgroup.com
or
Emily Hanan
ehanan@investorrelationsgroup.com
or
Media Relations:
Susan Morgenbesser
smorgenbesser@investorrelationsgroup.com
or
Lynn Granito
lgranito@investorrelationsgroup.com

Source: eFoodSafety.com, Inc.

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Disclaimer
The OTC Journal Newsletter is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible. Moreover, as detailed below, this publication accepts compensation from certain of the companies which it features. Likewise, this newsletter is owned by MarketByte, LLC. To the degrees enumerated herein, this newsletter should not be regarded as an independent publication.

Go Here to view our compensation on every company we have ever covered, or visit the following web address: http://www.otcjournal.com/disclosure/compensation/section/profile/ for our full profiles and http://www.otcjournal.com/disclosure/compensation/section/alert/ for Trading Alerts. MarketByte LLC has been paid a fee of $30,000 cash and 1 million newly issued restricted shares by eFoodSafety for coverage of the company. On January 17, 2008, eFoodSafety engaged MarketByte LLC for a one year extension of its coverage. The original 1 million shares have become free trading under Rule 144 as of January 17, 2008. Additionally, the Managing Member of Marketbyte LLC has purchased 50,000 shares of eFoodSafety in the open market at an average cost basis of $.19 cents per share.

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