TTI develops Transdermal Delivery System (TDS®)-enhanced products in its own
laboratories. Before beginning its partnering efforts, TTI takes those products
through pre-clinical and clinical testing phases as far as it believes is necessary
to obtain the greatest return on investment for its shareholders.

Following product development, TTI believes its principal income will come from
research collaborations, up-front payments, milestones and royalty payments from
companies who will license and sell TDS®-enhanced products. TTI also may seek to
supplement its platform technology with the opportunistic acquisition of TDS®-
compatible and other drug-delivery technologies.