VRG Technologies, Inc.

Immune diseases are found in a substantial proportion of the
population. These diseases are often chronic, debilitating and life-threatening and many currently have no cure. The majority of immune diseases are rare in occurrence and not well known. However, drugs to treat the leading immune  diseases -- excluding acquired immune deficiency syndrome (AIDS) and cancer--represented in 1998 approximately 10% of the
approximately $250 billion world prescription drug market. This market report on advances in the treatment of immune diseases provides a comprehensive assessment of the current state of technical advances as well as the commercial and market potential of products and programs in development at various companies and institutions.

According to a soon-to-be-released BUSINESS COMMUNICATIONS CO., INC. study RC-141R
Immune Diseases: Advances in Diagnosis and Treatment Products, the world prescription pharmaceuticals market was estimated at approximately $280 billion in 1998 and is projected to
approach $450 billion by 2003. Drugs to treat leading immune  diseases (excluding acquired immune deficiency syndrome -- AIDS--and cancer) represented approximately 10% of the world
prescription drug market in 1998. This market will rise to $44 billion by 2003, growing at an average annual growth rate (AAGR) of 8.8 % from 1998 to 2003. 

Several categories within this market will witness double-digit AAGRs as more effective (and more expensive) products are introduced for the first time to replace older agents or products that treat a
particular disease. The market for the treatment of asthma comprised nearly 30% of the $29 billion prescription drug market in 1998. This is expected to grow at an AAG R of 10.1% from 1998 to 2003 to reach $14 billion in 2003.

Cyclo-oxygenase (COX)-2 inhibitors, the first of which received U.S. market approval in January 1999, will give a substantial boost to the rheumatoid arthritis market by providing excellent control of inflammation and pain without the side effects associated with older anti-inflammatories. This market was estimated at $6.4 billion in 1998 and is expected to reach $8.8 billion in 2003, growing at an AAGR of 6.5% during the five-year period. 

In the treatment market for Type I diabetes mellitus, insulin analogs are being introduced that offer greater efficacy and are priced substantially higher than older products. This market is growing at
an AAGR of 10.3% from 1998 to 2003.

Products that specifically treat multiple sclerosis began to enter the market in 1993, and this sector will see an average annual growth exceeding 19% because of continued introduction and use of these
innovative and effective treatments. Being the fastest growing market, it will rise from an estimated $1.3 billion in 1998 to $3.2 billion in 2003.