APPENDIX A

[Automotive Breakthrough Sciences, Inc. or
ABS Tech Sciences, Inc. letterhead]

Dear A•B•S/Trax Reseller:

Our records indicate that you are or have been a distributor or retailer of the A•B•S/Trax or A•B•S/Trax˛ (hereinafter "A•B•S/Trax"), a brake product. This letter is to advise you that the Federal Trade Commission ("FTC") recently obtained an Order against Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc. regarding certain claims made for the A•B•S/Trax device. Under that Order, we are required to notify our distributors, wholesalers and others who have A•B•S/Trax to stop using or distributing advertisements or promotional materials containing these claims. We are also asking for your assistance in compiling a list of A•B•S/Trax purchasers, so that we may contact them directly. Please read this letter in its entirety and comply with all parts.

The FTC's Decision and Order

The Federal Trade Commission has determined that the following claims made for the A•B•S/Trax device in Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc.'s advertisements, logos and promotional material are FALSE and MISLEADING:

(a) A•B•S/Trax is an antilock braking system.
 
(b) A•B•S/Trax prevents or substantially reduces wheel lock-up, skidding, or loss of steering control in emergency stopping situations;
 
(c) A•B•S/Trax will qualify a vehicle for an automobile insurance discount in a significant proportion of cases;
 
(d) A•B•S/Trax complies with a performance standard set forth in Wheel Slip Brake Control System Road Test Code SAE J46;
 
(e) A•B•S/Trax complies with a standard pertaining to antilock braking systems set forth by the National Highway Traffic Safety Administration;
 
(f) A•B•S/Trax has been proven in tests to reduce stopping distances by up to 30% when the vehicle's brakes are applied at a speed of 60 mph; and
 
(g) A•B•S/Trax provides antilock braking system benefits, including wheel lock-up control benefits, that are at least equivalent to those provided by original equipment manufacturer electronic antilock braking systems.

The FTC Order requires Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc. to cease and desist from making these false claims for the A•B•S/Trax device. In addition, the FTC Order requires Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc. to cease and desist from making claims that A•B•S/Trax will shorten stopping distances in emergency stopping situations or make a vehicle safer, unless at the time of making such representation it possesses competent and reliable scientific evidence substantiating the representation.

We need your assistance in complying with this Order.

Please immediately send us the names and last known addresses of all persons or businesses, including other resellers, to whom you have sold an A•B•S/Trax or A•B•S/Trax˛ since January 1, 1990. We need this information in order to provide the notification required by the FTC Order. If you do not provide this information, we are required to provide your name and address to the FTC.

Please stop using the A•B•S/Trax or A•B•S/Trax˛ promotional materials currently in your possession. These materials may contain claims that the FTC has determined to be false or unsubstantiated. You also should avoid making any of the representations as described in this letter. Under the FTC Order, we must stop doing business with you if you continue to use the prohibited materials or make the prohibited representations.

If you have any questions, you may call the Division of Enforcement of the Federal Trade Commission at (202) 326-2998. Thank you for your cooperation.

Very truly yours,

Richard Schops
President
Automotive Breakthrough Sciences, Inc.

APPENDIX B

[Automotive Breakthrough Sciences, Inc. or
ABS Tech Sciences, Inc. letterhead]

Dear A•B•S/Trax Customer:

Our records indicate that you previously purchased an A•B•S/Trax or A•B•S/Trax˛ (hereinafter "A•B•S/Trax") for your vehicle. This letter is to advise you that the Federal Trade Commission ("FTC") recently obtained an Order against Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc. regarding certain claims made for the A•B•S/Trax device. Please read this letter in its entirety.

The FTC's Decision and Order

The Federal Trade Commission has determined that the following claims made for the A•B•S/Trax device in Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc.'s advertisements, logos and promotional material are FALSE and MISLEADING:

(a) A•B•S/Trax is an antilock braking system.
 
(b) A•B•S/Trax prevents or substantially reduces wheel lock-up, skidding, or loss of steering control in emergency stopping situations;
 
(c) A•B•S/Trax will qualify a vehicle for an automobile insurance discount in a significant proportion of cases;
 
(d) A•B•S/Trax complies with a performance standard set forth in Wheel Slip Brake Control System Road Test Code SAE J46;
 
(e) A•B•S/Trax complies with a standard pertaining to antilock braking systems set forth by the National Highway Traffic Safety Administration;
 
(f) A•B•S/Trax has been proven in tests to reduce stopping distances by up to 30% when the vehicle's brakes are applied at a speed of 60 mph; and
 
(g) A•B•S/Trax provides antilock braking system benefits, including wheel lock-up control benefits, that are at least equivalent to those provided by original equipment manufacturer electronic antilock braking systems.

The FTC Order requires Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc. to cease and desist from making these false claims for the A•B•S/Trax device. In addition, the FTC Order requires Automotive Breakthrough Sciences, Inc., and ABS Tech Sciences, Inc. to cease and desist from making claims that A•B•S/Trax will shorten stopping distances in emergency situations or make a vehicle safer, unless at the time of making such representation it possesses competent and reliable scientific evidence substantiating the representation.

If you have any questions, you may call the Division of Enforcement of the Federal Trade Commission at (202) 326-2998. Thank you for your cooperation.

Very truly yours,

Richard Schops
President
Automotive Breakthrough Sciences, Inc.