Analyst: Lisa Springer, CFA

Initial Report
October 2nd, 2008

MVSR daily 10/01/2008

0.65

0.60

0.55

0.50

0.45

0.40

0.35

Medivisor, Inc. 0.30

326 Walt Whitman Road 0.25

Huntington Station, NY 11746 volume © BigCharts.com
400

Thousands
300
Phone: 631-549-7100
200
Fax: 631-549-7119 100
E-mail: info@medivisor.com 0
Website: www.medivisor.com Aug Sep

MARKET DATA Company Introduction

Medivisor Inc. (MVSR) provides a broad range of outsourced mar-
keting and sales services to pharmaceutical and life sciences com-
Symbol MVSR panies. The Company uses the most advanced communication
Exchanges OTC PK
channel in the industry - electronic detailing (e-detailing) - to pro-
Current Price $0.25
Price Target $0.87 mote pharmaceutical products to physicians and to inform medical
Rating Speculative Buy professionals of medical advances. The Company creates a variety
Outstanding Shares 13.84 Million of educational and informational presentations and distributes it
Market Cap. $3.46 Million through the Internet, video conferencing and interactive voice re-
Average 3-m Volume 23,132 sponse to the mutual benefit of both the pharmaceutical vendors
and healthcare practitioners.
Source: Yahoo Finance, Analyst Estimates

MVSR is entering into exclusive arrangements with drug manufac-

turers to market their products in return for a share of the profits
from drug sales. The Company has an agreement with New Jersey-
based Cura Pharmaceutical to market Albumax, a whey protein iso-
late formula that allows patients with kidney disorders to achieve
daily protein requirements, as well as MucotrolTM, an oral gel wa-
fer for treating mouth sores resulting from chemotherapy. Albumax
has been approved by the New York, California and Pennsylvania
state Medicaid offices, while MucotrolTM has 510-K approval from
the FDA. MVSR recently signed an agreement giving the Company
exclusive rights to distribute Albumax in Italy. The annual world-
wide markets for MucotrolTM and Albumax are estimated at $250
million and $120 million, respectively.

In addition, MVSR recently signed a revenue-sharing agreement

with PanGenex Corp. for the marketing and sale of LipidemeTM,
which is the first product on the market combining the triglyceride-
lowering power of omega-3 fatty acids with the cholesterol-low-
ering ability of phytosterols and tocotrienols, as well as the free-
Medivisor, Inc. (OTC PK: MVSR) 1
 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

radical fighting abilities of Coenzyme Q10. This product addresses a potential U.S. market consisting of nearly
140 million Americans with borderline-high or high cholesterol levels. The Company is also poised to launch an
energy drink in the European market that contains Acai, a top superfood with extraordinary health benefits.

Investment Highlights
Business model focusing on marketing pharmaceuticals

MVSR delivers comprehensive marketing strategies to help pharmaceutical manufacturers communicate key
scientific findings to the medical community. The Company’s services are designed to help pharmaceutical com-
panies reach key audiences and increase sales of new and current drugs. MVSR works with pharmaceutical
companies, health care organizations, medical suppliers and distributors.

In 2006, global spending on prescription drugs topped $643 billion, growing 10% annually between 1999 and
2006. North America accounted for the largest percentage of the world market (45%), and Europe second at 23%
of total global sales.

Digital technology enhances marketing effort

With the pharmaceuticals industry spending more than $14 billion annually on detailing, there is increased pres-
sure on pharmaceutical companies to find new, profitable ways to reach physicians and build revenues.

MVSR employs e-detailing, which refers to the use of digital technology such as Internet, tele/video conferenc-
ing and Interactive Voice Response, to enhance or replace the pharmaceutical representatives’ traditional sales
call on healthcare providers, maximize sales force productivity, reduce costs and increase physician prescribing.
Through e-detailing, MVSR provides an Internet venue where vendors can “detail” and clinicians can absorb
published scientific, technical, or medical information that is relevant to the product and available on-demand.
In addition, the Company provides appropriate honorariums to show appreciation for the professional’s time
spent reading or listening to the presentation.

Cura Pharmaceutical agreements

MVSR has secured agreements with Cura Pharmaceutical

to market Albumax, a whey protein isolate formula that
helps patients with kidney disorders obtain their daily pro-
tein requirements, and MucotrolTM, an oral gel wafer that
soothes mouth sores related to chemotherapy.

Albumax has been approved by the New York, Califor-

nia and Pennsylvania state Medicaid offices. MucotrolTM
received FDA approval in November 2004. Albumax ad-
dresses a $120 million worldwide market, while the market
for MucotrolTM is estimated at $250 million.

Revenue-sharing agreement with PanGenex

Medivisor, Inc. (OTC PK: MVSR) 2

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

The American Heart Association estimates that nearly 140 million Americans have either borderline-high or high
cholesterol levels. In 2003, approximately 22 million people took a medication to try to lower their cholesterol.

MVSR recently signed a revenue-sharing agreement with PanGenex Corp. for the marketing and sale of Lipi-
demeTM. LipidemeTM is the first product on the market to combine the triglyceride-lowering power of omega-3
fatty acids with the cholesterol-lowering ability of phytosterols and tocotrienols, plus the free-radical fighting
abilities of Coenzyme Q10. Because these four ingredients tackle different aspects of cardiovascular health, Lipi-
deme’s synergistic blend is far superior to single-ingredient products.

Entry into the energy drink market

The Company is also preparing to launch its own energy drink in the billion dollar energy drink market. The
Company’s energy drink contains Acai, one of the world’s top superfoods. The extraordinary health benefits of
Acai, which include superior nutrient content and unmatched antioxidant levels, have been validated by scientific
studies.

Energy drinks are the fastest-growing segment of the beverage market. Since 2003, the energy drink market has
grown 440% to $6.6 billion in 2007 and is expected to reach $9 billion in 2011.

Strong revenue growth outlook

The revenue-sharing agreements with Cura Pharmaceuticals, PanGenex and the energy drink market initiative
should fuel robust revenue growth for MVSR. We expect the Company to record 2009 revenues in a $6 million
range and maintain 40%-50% annual growth over the next three to five years. MVSR anticipates reaching breakev-
en in the second half of 2009.

Business Model
The Company’s business model focuses on delivering comprehensive marketing strategies with integrated tactics
and solutions that help pharmaceutical manufacturers communicate key scientific findings to the medical commu-
nity. MVSR assists pharmaceutical companies in reaching out to targeted audiences and expanding sales of new
and current drugs. The Company’s services integrate direct promotional materials, medical education, marketing
research, physician interaction, internal information, training resources, meeting services, campaign monitoring,
strategic planning, creative development, project management and public relations. As part of its program, MVSR
offers free medical Web sites to its physician members.

MVSR uses e-detailing (i.e. digital technologies such as Internet, tele/video conferencing and Interactive Voice
Response) to enhance or replace traditional pharmaceutical rep sales calls, maximize sales force productivity,
cut costs and increase physician prescribing. Through e-detailing, vendors can “detail” and clinicians can absorb
relevant published scientific, technical, or medical information at their convenience, with availability 24 hours a
day, seven days a week.

Medivisor, Inc. (OTC PK: MVSR) 3

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Pharma CRM strategy which integrates e-detailing

Source: www-935.ibm.com/services/us/imc/pdf/g510-3242-effective-e-detailing.pdf

MVSR operates two Web sites: www.medivisor.com and www.statdose.com

• Medivisor.com communicates with medical and pharmaceutical companies and includes full-service inte-
grated marketing solutions for all their business needs. Medivisor.com also has applications in related areas
such as businesses that rely on referrals, consumption and information from physicians, regulatory training
mandates and updates, continued medical education courses and business education designed by medical
professionals, and medical association conferences and seminars. With a direct link from Statdose.com, Me-
divisor.com allows healthcare professionals to log in and view presentations by entering their assigned user
ID and password. Members receive an e-mail alert every time MVSR posts a presentation that is relevant to
their practice.

• Statadose.com provides online marketing services and clinical tools that communicate new products, services
and other medically relevant information to physicians/decision makers, including providers of continuing
medical education courses, sponsors of medical conferences and seminars, and pharmaceutical companies.
Statdose.com’s resources also include Continuing Medical Education (CME) credits, medical journal articles,
medical news, healthcare announcements, product reviews, major conference coverage and comprehensive
drug information.

Medivisor, Inc. (OTC PK: MVSR) 4

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

The Company’s services are distributed through e-mail campaigns and electronic newsletters consisting of short
video advertisements. Advertisements are one-to-10-minute informational presentations with interactive feed-
back loops to medical vendors and their physician customers. Informational presentations are developed in video,
flash or high tech animated slide presentation formats incorporating state-of-the- art technology. Each is custom-
ized to address the unique needs of that particular audience. Healthcare professionals determine who the target
audience should be and what their needs are. The Company may also use face-to-face detailing to increase the
effectiveness of its promotions.

MVSR recently acquired Big Pants Media Inc., a New York-based design and development agency, to gain access
to a larger suite of digital marketing and promotional tools (i.e. SMS capabilities to cell phones, PDAs & Smart-
phones). In addition, Big Pants provides the Company with WAP development and application technology that
enhances online marketing capabilities.

Growth Strategy
The Company partners with pharmaceutical distribution companies to help them increase sales of new and exist-
ing drugs. MVSR targets pharmaceutical companies; health care organizations, such as hospitals, VA hospitals,
physician clinics, urgency care clinics and assisted living facilities; medical suppliers and distributors; profes-
sional services, such as attorneys, accountants and insurance; medical educational services; media; and shows and
conferences.

The marketing strategy focuses on:

• developing initial electronic contacts with healthcare professionals;
• developing and establishing initial correspondence and verbal contact after the initial electronic contacts;
• arranging face-to-face meetings and follow-up with healthcare professionals; and
• establishing strategic contacts with primary decision-makers at healthcare facilities and major vendors.

Partnership agreements

The Company partners with life sciences companies to help them reduce promotional costs and improve the
productivity of their existing sales force. MVSR also provides sales and marketing expertise to promote specific
pharmaceutical products on behalf of their customers through profit-sharing agreements. The Company’s clients
include large and medium-sized pharmaceutical companies.

Medivisor, Inc. (OTC PK: MVSR) 5

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

MVSR clients and products

Source: Company Web site

One of the MVSR’s most important partners is Cura Pharmaceutical, a New Jersey-based pharmaceutical mar-
keting company. During 2006-2007, MVSR entered into five-year sales agent agreements with Cura to market its
MucotrolTM and Albumax products.

Cura Pharmaceutical supplies, distributes and sells MucotrolTM and Albumax in the United States. Per the terms
of the sales agent agreements, MVSR is guaranteed an annual minimum of 20,000 units each of MucotrolTM and
Albumax, beginning in June 2008. The partners share equally (50% - 50%) in the net profits generated by MVSR’s
MucotrolTM and Albumax sales.

The Company also signed a revenue-sharing agreement with PanGenex Corporation to market LipidemeTM,
a synergistic blend of ingredients designed to lower cholesterol four ways. MVSR is responsible for generating
sales growth for LipidemeTM in the U.S. and internationally. The potential market for an effective cholesterol
lowering product is enormous; the American Heart Association estimates that nearly 140 million Americans
have either borderline-high or high cholesterol.

Medivisor, Inc. (OTC PK: MVSR) 6

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Products and Services

The Company provides medical information to healthcare professionals, primarily physicians, through its Web
sites using inter-active, informational, video and graphic presentations.

MVSR has developed a range of services that provides mutually beneficial interactions between sought-after phy-
sicians and the organizations that want to reach them. The Company’s services include online e-detailing, medical
education and market research. Other services and programs include:

• free resource and continuing medical education courses, medical journal articles, medical news, major confer-
ence coverage and comprehensive drug information for the medical practice and small business needs;

• complimentary Web sites, which are included in the Statdose.com member directory;

• blogging, which is an excellent communication tool for the medical community for medical news, health care
updated, managed care, new drug information and continuing medical education courses, as well as informa-
tion and ideas from colleague to colleague; and

• online meeting rooms, which provide graphical interface live meetings for both Web and CD Rom presenta-
tions.

Some the Company’s marketed products are:

Mucotrol Oral Gel Wafer, which slowly dissolves in the mouth to form a soothing and protec-
tive layer over mouth lesions, including oral mucositis/stomatitis caused by chemotherapy or
radiotherapy. Mucotrol™ could be used by more than 1 million people when combining all the
categories for its effective use. In addition to usage for chemo and radiation, Mucotrol™ is also
effective in the treatment of irritation due to oral surgery, traumatic ulcers caused by braces, ill-
fitting dentures or disease.

Albumax supplies high-quality protein along with two essential amino acids in a powder form
that may be mixed with or sprinkled on other foods. This avoids raising the fluid intake of the
patient or adding something to the patient’s diet that may be inappropriate for that patient.

Renewal Method includes Digestive Cleanse, Liver Cleanse, Mellow-Tone™, Xentropin, ™

AminoPlex™, and Myoguard. The Renew Method supports the bodies’ own natural functions
to help cleanse the body with proper nutrients and maintain a healthy nutritional balance. In
combination with a healthy diet and exercise, this method can help restore health and recapture
youth.

MedivoxRx makes it easier to administer prescription medications to elderly and blind indi-
viduals. The Talking Prescription Bottle helps reduce medication errors while helping patients
maintain their independence.

Medivisor, Inc. (OTC PK: MVSR) 7

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Research reveals 110 million Americans drink coffee daily. JavaFit is formulated to help people
lose fat and increase their metabolism.

LIPIDEME™ is the first product on the market to combine the triglyceride-lowering power
of omega-3 fatty acids with the cholesterol-lowering ability of phytosterols and tocotrienols,
as well as the free-radical fighting capacity of Coenzyme Q10. Because these four ingredients
tackle different aspects of cardiovascular health, Lipideme’s synergistic blend is far superior
to single-ingredient products.

Industry Outlook

Overall U.S. health expenditures (including investments) exceeded $2.2 trillion in 2007. Going forward, U.S.
health expenditures are projected to reach $4.3 trillion in 2017, growing at an average annual rate of 6.7%.

Through 2017, growth in health spending is expected to outpace that of GDP by an annual average rate of 1.9%
points. As a percentage of GDP, healthcare spending is projected to increase from 16.0% in 2006 to 19.5% in
2017.

National Health Expenditures, $ Billions

Source: Centers for Medicare and Medicaid Services: National Health Care Expenditures Projections: 2007-2017

Medivisor, Inc. (OTC PK: MVSR) 8

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Fundamentally, the healthcare industry outlook looks strong with a number of factors fueling at least a decade of
growth:

1. Increased concern of the population regarding health. Population expenditures for medical care are approach-
ing 16.3% of all personal consumption expenditures (approximately $7,500 per year, compared to $5500 per
year in 2002).
2. The aging of the population globally. In 25 years, the number of Americans aged 65 and older will double to
more than 70 million seniors. The numbers of people aged 85 and above will increase four-fold. People aged
100 or more – currently there are 70,000 – will increase 10 times through 2050.
3. As a result of population aging, the incidence of diseases is increasing. Medical care expenditures will increase
dramatically when the leading edge of the Baby Boom moves into Medicare in two to three years.

Global pharmaceuticals industry

Unlike other manufacturing industries, the financial health of the pharmaceutical industry has been relatively
immune to economic shifts. However, developments in science and technology over the last decade tightened
regulatory compliance, contributed to changes in product markets, and in industry dynamics, have led to a situ-
ation where even the large pharmaceutical companies are showing signs of strain. There is a greater pressure on
companies to develop and launch new products today.

In 2006, global spending on prescription drugs topped $643 billion, growing10% annually between 1999 and 2006.
North America accounted for the largest percentage of the world market (45%), with Europe at 23% of total global
sales. Emerging markets such as China, Russia, South Korea and Mexico outpaced overall growth, growing 81%1
. The global pharmaceutical market is forecast to grow to $842 billion in 2010.

The pharmaceutical industry is the most profitable of all businesses in the United States. In the annual Fortune
500 survey, the pharmaceutical industry topped the list of the most profitable industries, with a return of 17% on
revenue. The U.S. is the single largest pharmaceutical market with an estimated market of $ 286.5 billion in 2008.
Per capita expenditure on drugs was $1,069 in 2006, nearly double the level found in the rest of the world. In the
U.S., pharmaceutical sales are forecast to grow 6% through 2012. Dynamics that will shape the market over the
next five years include the continued loss of exclusivity in major therapy areas, new specialist-driven products,
greater levels of therapeutic substitution, along with greater awareness and focus on safety issues2.

1
http://en.wikipedia.org/wiki/Pharmaceutical_companies#cite_note-forbes-10-14
2
www.marketwatch.com/news/story/us-prescription-drug-sales-growth/story.aspx?guid=%7B37AD0634-681C-4E1A-AC1F-E364D027B3C9%7D

Medivisor, Inc. (OTC PK: MVSR) 9

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

U.S. pharmaceutical sales, $ Billions

Source: www.iht.com/articles/ap/2007/11/01/business/NA-FIN-US-Drug-Industry-Forecast.php

A 2008 study by two York University researchers estimates the U.S. pharmaceutical industry spends almost twice
as much on promotion as it does on research and development. The U.S. pharmaceutical industry spent 24.4%
of every sales dollar on promotion, versus 13.4% for research and development, as a percentage of US domestic
sales. The number of meetings for promotional purposes has dramatically increased in the U.S. pharmaceutical
industry, jumping from 120,000 in 1998 to 371,000 in 2004.

According to a Datamonitor report, drugs valued at $140 billion will lose patent protection by 20163. According
to IMS Health data, in the United States, drugs with approximately $20 billion in annual sales will face patent ex-
piration in 20084. Moreover, pharmaceutical companies may see a dramatic fall in revenues as new competitors
take market share. Drugs worth $65 billion-$70 billion are expected to go off-patent in the next four to five years,
according to a KPMG study. In both cases – patent expiration or issuance of new patent – there is an increased
need for solutions that can increase sales force productivity. The use of IT tools and techniques that integrates
diverse data sources and provides advanced decision support analytics is essential to formulate winning prod-
uct promotion strategies.

3
www.forbes.com/business/feeds/afx/2007/05/02/afx3675931.html
4
www.rediff.com/money/2008/aug/02drug.htm

Medivisor, Inc. (OTC PK: MVSR) 10

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Data integration and analytics for pharmaceutical sales and marketing

Source: www.biosoft.vndv.com/articles/tutorial/SETLabs_Life_Sciences_Challenge.pdf

e-detailing

Traditionally, pharmaceutical sales and marketing strategies have been dominated by the direct correlation be-
tween sales force size and market share. Growth in sales force size has been the main driving force of sales and
marketing activity for pharmaceutical companies. However, the focus has recently shifted from increasing field
sales force size to increasing quality of physician interaction primarily for two reasons: decreasing cost effective-
ness of existing sales force and diminishing returns from incremental sales people.

Sales and marketing costs represent the single greatest expenditure for today’s pharmaceutical companies, and
this significantly diminishes their return on investment. More and more companies are trying to promote their
products to a customer base that has less time to deal with them. Even when company representatives do get
face time with customers, research has shown the average session is three minutes, and attention spans are even
shorter5. Some estimates suggest 40% of details simply “fail at the reception desk”6. Moreover, 39% of physicians
say not every sales representative meeting brings value-added information. Physicians believe the product infor-
mation these reps bring is biased and rely more on medical magazines and journals for product information.

5
www.allaboutmedicalsales.com/articles/edetailing_2_cw_pharmiweb_180902.html
6
www.allaboutmedicalsales.com/articles/edetailing_cw_pharmiweb_050702.html

Medivisor, Inc. (OTC PK: MVSR) 11

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

As the cost of detailing a doctor face-to-face becomes more expensive, the Internet is emerging as an attractive
alternative. Electronic detailing (e-detailing) was first introduced in the United States and is now available across
Europe with major pharmaceutical companies offering e-detailing technology. E-detailing is a supplementary
marketing channel that provides new sales opportunities and enables healthcare professionals to receive the
information they want when they want it.

Currently, 99% of doctors use the Internet to improve their patient care. According to Hawkinson, 70% of physi-
cians consult the Internet several times daily for their practice needs, and high-speed access is now common-
place7. This number continues to increase because of the 24-hour accessibility of the Internet. Doctors regularly
use computers, PDAs and cell phones, and consult podcasts and blogs for additional information.

E-detailing offers an opportunity to reduce sales and marketing costs by enhancing efficiency and effectiveness.
A six-month, 1,130 doctor study with i-PhysicianNet showed a 25% reduction in detailing costs . In addition, the
study also indicated that the average length of each detail doubled, as did the number of details per sales person
per day. This indicates how companies can profitably use IT to improve their sales force effectiveness.

A typical e-detailing program reaches 2,500 physicians, and life-sciences companies are aiming to reach 10,000
to 25,000 physicians. To achieve this target, these companies must use next-generation e-detailing technologies
that are interactive and can be customized. According to market-research company Best Practices LLC, most
companies expect e-based sales training to be a primary tool in the next couple of years because of the drive to
control spending, maximize training efforts and minimize the time that representatives are not in the field. The
life-sciences e-detailing market is expected to grow at a fast pace, with revenues rising from $44.5 million in 2004
to $103.4 million in 200 .

E-detailing offers an opportunity to reduce sales and marketing costs by enhancing efficiency and effectiveness.
A six-month, 1,130 doctor study with i-PhysicianNet showed a 25% reduction in detailing costs8. In addition, the
study also indicated that the average length of each detail doubled, as did the number of details per sales person
per day. This indicates how companies can profitably use IT to improve their sales force effectiveness.

A typical e-detailing program reaches 2,500 physicians, and life-sciences companies are aiming to reach 10,000
to 25,000 physicians. To achieve this target, these companies must use next-generation e-detailing technologies
that are interactive and can be customized. According to market-research company Best Practices LLC, most
companies expect e-based sales training to be a primary tool in the next couple of years because of the drive to
control spending, maximize training efforts and minimize the time that representatives are not in the field. The
life-sciences e-detailing market is expected to grow at a fast pace, with revenues rising from $44.5 million in 2004
to $103.4 million in 200 .

7
www.allaboutmedicalsales.com/articles/edetailing_cw_pharmiweb_050702.html
8
www.allaboutmedicalsales.com/articles/edetailing_cw_pharmiweb_050702.html

Medivisor, Inc. (OTC PK: MVSR) 12

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Financial Analysis

Revenue and profitability

The Company has not generated significant revenues to date. During the first half of 2008, the Company’s revenue
declined 65% to $98,050, mainly due to the fact that it was focused on preparing several new contracts to market
drug and lifestyle products.

The Company has announced revenue-sharing agreements with PanGenex for Lipideme™, sales and marketing
agreement with Cura Pharmaceutical for Mucotrol in the United States, and exclusive distribution right for Al-
bumax in Italy. In addition, the Company is in final negotiations with its first nationwide distributor for sales of
an energy drink, Maximum Energy Shot. These activities are likely to support rising second half 2008 and 2009
revenues.

Income statement, $

2006 2007 % Chg H1 2007 H1 2008 % Chg

Revenues 225,569 809,776 259% 281,275 98,050 -65%

Cost of Sales - 267,775 n/m - 4,875 n/m
Gross Profit 225,569 542,001 140% 281,275 93,175 -67%

General and Administrative 253,897 363,658 43% 156,666 217,784 39%

Legal and Accounting 40,000 12,485 -69% 2,835 16,650 487%
Consulting 72,076 210,054 191% 14,000 14,380 3%
Depreciation and Amortization 3,650 2,824 -23% - 706 n/m
Total Operating Expenses 369,623 589,021 59% 173,501 249,520 44%

Operating Loss (144,054) (47,020) n/m 107,774 (156,345) n/m

Other Expenses 1,982 2,778 40% 394 450,000 114113%

Net Income/(Loss) (146,036) (49,798) n/m 107,380 (606,345) n/m

Diluted EPS (0.02) (0.01) n/m 0.01 (0.05) n/m

Source: Company’s filings

During the first half of 2008, the Company reported operating expenses of $249,520, consisting primarily of gen-
eral and administrative expenses. During the first half of 2008, MVSR incurred compensatory element of stock in
the amount of $450,000.

Liquidity

Since its inception, the Company has incurred losses and negative cash flows from operations. MVSR has been
dependent on external financing, including private sales of securities and borrowings from its CEO to fund opera-
tions. As of June 30, 2008, the Company had an accumulated deficit of $2,022,276 and a working capital deficit of
$298,192. This raises doubt about the Company’s ability to continue as a going concern.

Medivisor, Inc. (OTC PK: MVSR) 13

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Balance Sheet, $

31-Dec-07 30-Jun-08

Cash and equivalents 2,306 342

Total Current Assets 90,752 84,868

Property and Equipment, net 30,975 27,633

Security Deposit 2,444 2,454
Goodwill 85,000 85,000
Total Assets 209,171 199,955

Total Current Liabilities, including 715,931 383,060

Debt 22,095 77,678
Total Stockholders’ Equity, including (506,760)
Accumulated deficit (1,415,931) (183,105)

Source: Company’s filings

The Company plans to raise external financing to meet short and long-term operating requirements. According
to management, MVSR needs approximately $0.5 million to fund the Energy Shot product launch and a poten-
tial rollup strategy.

Outlook and Valuation

MVSR is a medical communications company with several exclusive deals with drug manufacturers to market
their products.

The Company has agreements with Cura Pharmaceutical to market Albumax, a whey protein isolate formula
that helps patients with kidney disorders achieve their daily protein requirements, and Mucotrol, an oral gel wa-
fer for treating mouth sores related to chemotherapy. Albumax has been approved by the New York, California
and Pennsylvania state Medicaid offices, while Mucotrol received clearance from the FDA in late 2004. MVSR
has signed an agreement giving the Company the exclusive right to distribute Albumax in Italy. These products
address markets of $250 million and $120 million, respectively.

MVSR has also signed a revenue-sharing agreement for the marketing and sale of LipidemeTM with PanGenex
Corporation. The terms of the Agreement call for MVSR and PanGenex to pool collective resources for marketing
LipidemeTM, a synergistic blend of ingredients designed to lower cholesterol four ways. The American Heart
Association estimates that nearly 140 million Americans have either borderline-high or high cholesterol level.

The Company is also preparing the launch a novel energy drink. According to Market Research Group, the ener-
gy drink category has grown 440% since 2002 to $6.6 billion in 2007 and is expected to reach $9 billion in 2011.

As a result of these developments, we expect the Company to generate 2009 revenues in a $6 million range and
to support 40%-50% annual growth over the medium term.

Medivisor, Inc. (OTC PK: MVSR) 14

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Revenue forecast, $ million

Source: Management guidance, analyst estimates

MVSR expects to breakeven in the second half of 2009.

Valuation

For valuation purposes we compared MVSR with other companies that provide outsourced pharmaceutical
sales and marketing services. Analyst forecast strong growth for this sector as the demand for drugs remains
solid.

The peer group companies currently trade at forward Price/Sales multiples of around 0.73 times sales. We be-
lieve MVSR should trade at better multiples given the recently signed agreements, low revenue base and solid
growth outlook.

Peer comparison
Ticker Price per Mrkt. Cap. P/E P/S
Symbol Share, Mn 2007 2008 2007 2008
PDI Inc. PDII $7.69 $110 n/m n/m 0.87 0.61
inVentiv Health, Inc. VTIV $17.91 $595 11.63 10.06 0.54 0.50
Publicis Groupe SA PUBP.PA € 21.66 € 4,045 9.71 9.38 0.87 0.86
Omnicom Group Inc. OMC $40.23 $12,830 12.04 11.24 0.92 0.88

Median 11.63 10.06 0.87 0.73

Source: Yahoo Finance! Reuters.

Medivisor, Inc. (OTC PK: MVSR) 15

 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

Multiplying our 2009 revenue estimate of $6 million by a 2.0 Price/Sales multiple, we derive a $12 million mar-
ket capitalization target for MVSR. Dividing this amount by 13.84 million fully diluted shares outstanding, we
derive a $0.87 price target. As a result, we are initiating coverage of MVSR with a Speculative Buy rating and a
$0.87 price target. However, we strongly advise investors to consider the risk factors mentioned below since the
Company faces many challenges in achieving its revenue growth goals.

Risks

No revenues and history of losses

Since its inception, the Company has incurred losses and negative cash flows from operations. MVSR has been
dependent upon external financing, including private sales of securities and borrowings from its CEO to fund
operations. As of June 30, 2008, the Company had an accumulated deficit of $2,022,276 and working capital defi-
cit of $298,192. This raises doubt about the Company’s ability to continue as a going concern.

Intense competition

The Company competes with companies that manage their sales internally and with a small number of players
in outsourced pharmaceutical sales such as PDI Inc., inVentiv Health Inc., Innovex Inc. and Publicis Groupe
SA.

In addition, there are relatively few barriers to entry in outsourced pharmaceutical sales, and as the industry
continues to evolve, new competitors are likely to emerge. Increased competition or a decrease in demand for
outsourced sales services may lead to pricing pressures and competitive practices that could have a material
adverse effect on MVSR.

Need for additional funding

The Company will require external funding to implement its marketing strategy. MVSR’s management expects
to spend at least $0.5 million to fund the Energy Shot product launch and a potential rollup strategy. There can
be no assurance that the Company will be able to find the needed financing on terms acceptable to the Company,
if at all.

Liquidity risk related to MVSR stock

The Company’s shares trade on the Pink Sheets market, which is less efficient than the national exchanges and
is characterized by higher volatility, limited transparency and poor liquidity. These factors may adversely affect
the price of MVSR common shares, regardless of the Company’s operating performance.

Medivisor, Inc. (OTC PK: MVSR) 16


Management Team
Dino Luzzi
President and Chief
Executive Officer
Wayne H. Wertheim
MD, Executive
Vice President and Director
Prudence L. Ferrone
Vice President and Director
Darren Cioffi
Chief Financial Officer
Dr. Grossman has been the Company’s medical director since January 2002. Dr Grossman is currently
David Grossman a clinical cardiologist in private practice. He trained at The Johns Hopkins University, the University of
MD, FACC, FACP, Medical Pennsylvania School of Medicine, and North Shore University Hospital-New York University School of
Director Medicine. Dr. Grossman is the former director of the Coronary Care Unit and Heart Failure Program at
Medivisor, Inc. (OTC PK: MVSR)
Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008
Mr. Luzzi has been the Company’s president and CEO since January 2002, as well as interim CFO. During
1999, Mr. Luzzi’s venture capital firm raised capital for Keytrade Online, an online brokerage firm, which
was acquired by a Latin American financial portal Patagon.com International for $35 million in cash, debt
and equity. Mr. Luzzi also currently provides consulting services to companies that have venture capital
needs. Mr. Luzzi has been working on MVSR’s strategic business plan for the past several years.
Dr. Wertheim has been MVSR’s executive vice president and a director since January 2002. Dr. Wertheim
has served as a practicing internist since 1981, and was managing partner of Roslyn Medical Associates
from 1981-1996 when he rejoined Winthrop University Hospital as a staff member to become the lead site
physician in the Long Island Primary Care Network. As medical director of International Business Build-
ers, Dr. Wertheim has been instrumental in the development of wellness centers and alternative medicine
programs with healthcare providers and insurers for the New York tri-state area and is a medical advisor
to a nutritional company operating globally.
Ms. Ferrone has been the Company’s vice president and a member of the board of directors since January
2002. Ms. Ferrone began her entrepreneurial career in the beauty and fashion industry as a professional
image consultant and then owner of a jewelry design company. In 1994, Ms. Ferrone founded International
Business Builders, a global distribution company for premier personal, health and wellness products with
a sales force of several hundred representatives in 20 countries.
Mr. Cioffi has been MVSR’s CFO since February 2008. Mr. Cioffi established Cioffi Business Management
Services in 2001 to provide consulting to public companies on SEC accounting/filing, Sarbane’s Oxley and
standard compliance measures. He held several positions in the consulting and technology industry in-
cluding COO of ThinkersGroup.com. Mr. Cioffi was vice president of consulting services with Total Busi-
ness Solutions, where he specialized in the implementation and sales of customer relationship manage-
ment (CRM) and back office accounting solutions through one-on-one and group collaboration with Total
Business Solutions clients. From 1995 - 1998, Mr. Cioffi served as controller and vice president of sales for
Comptech Resources. While at Comptech, he helped the company earn the distinction as the first Platinum
reseller of GoldMine software on Long Island. He also developed Long Island’s first GoldMine autho-
rized training center. Mr. Cioffi consulted and implemented solutions for a variety of businesses, including
Great Plains, RealWorld and Solomon Accounting Software systems. In October 1998, following Paratech
Resources Inc.’s acquisition of Comptech, Mr. Cioffi was named general manager of consulting services.
He also spent two years in public accounting for the firm of Pannell. Kerr Forster and served as assistant
controller for the Seafield Center from 1991- 1995. Mr. Cioffi earned a Bachelor of Science in accounting
from Long Island University.
North Shore University Hospital. He has numerous publications and is a national speaker on heart failure,
acute coronary syndromes, and hyperlipidemia.
17
 Analyst: Lisa Springer, CFA
Initial Report
October 2nd, 2008

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I, Lisa Springer, CFA, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in
this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I
certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Lisa Springer, MBA, CFA - Senior Analyst Lisa serves Beacon Research Partners as a research analyst. She brings to the company over 15 years experience in equity research and
investment marketing. Prior to joining Beacon, Lisa worked as an equity analyst for an independent research provider. She has also held positions as investor relations officer for a
NYSE-listed company and director of financial analysis for a large consulting firm. Lisa earned an MBA from the University of Chicago and is a Chartered Financial Analyst (CFA).

Medivisor, Inc. (OTC PK: MVSR) 18