SDS Receives FDA Warning Letter and Files Lawsuit Against Paul Bernstein

SDS Receives FDA Warning Letter and Files Lawsuit Against Paul Bernstein

Busines Wire - November 2, 2000

NEW YORK--Nov. 2, 2000--Saliva Diagnostic Systems, Inc. (OTC: SALV, SALVE): The Company has received a Warning Letter from the US Food and Drug Administration (FDA). The Company had previously shipped HIV diagnostic products to exporters located in the United States (labeled for export only). The FDA determined this to be a prohibited transaction. The Company is committed to FDA compliance, and has addressed this issue by providing the FDA with its new shipping procedures. The Company has still not received notice that the Warning Letter has been cleared and that the Company can resume to export these products.

SDS has filed a lawsuit in the Supreme Court of the State of New York, County of New York, against one of its directors, Paul Bernstein, asserting among other things, breach of fiduciary duty, interference with contractual and business relations, and defamation. The complaint alleges that as a result of Mr. Bernstein's actions, SDS was prevented from filing its 1999 Form 10-KSB, and prevented from moving ahead with its business plan. Compensatory and punitive damages are sought.

In a lawsuit filed in Federal Court against the Company by Sailesh Barchha, a former sales representative, he alleges that he is owed salary, stock, and stock options valued at over one million dollars. The Company has counter sued for monies paid to Mr. Barchha, and denies there are any monies due Mr. Barchha.

The Company has reached a settlement in its litigation with Fremont Novo Sciences. The settlement terms provide Fremont certain exclusive territories and preferential pricing on future sales.

The Company has relocated its offices to 3661 Horseblock Rd., Suite E, Medford NY (631) 205-0700.

FORWARD-LOOKING STATEMENTS:

This release contains forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product development and acceptance, manufacturing, competition, regulatory and/or other factors, which are outside the control of the Company.

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CONTACT: Saliva Diagnostic Systems, Inc. Mr. Ehrlich Tel: 631/205-0700 leo@salv.com
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