Tel-e-Atrics, Inc.

Tel-e-Atrics provides a fully functional telemedicine platform that enables virtual medical office visits that are live, real-time encounters providing diagnosis and treatment using the communication facilities of the Internet. Tel-e-Atrics does not engage in providing health services but has relationships with several health care organizations providing this service, using the Company's system sold under the tradename Tel-e-Atrics ConnectTM.

Tel-e-Atrics' focus is providing telemedicine capabilities for timely and cost effective medical care in child care centers, elementary schools and group homes for developmentally challenged patients. Forty-one sites including schools, childcare centers, and group homes are operational. These sites electronically interconnect patients with doctors at ten private pediatric practices, the University of Rochester Children's Hospital and 4 after-hour on call nursing stations. Current system users include six different customers, over 200 health care providers and over 1,800 registered patients. Several thousand virtual office visits have been completed.

Successful deployments have occurred in western NY but are now beginning to expand to several other geographic and market areas. The Company is in active discussion with three of the major contract child care providers who work with major corporations providing day care services for employees at or near work locations.

Tel-e-Atrics' management includes individuals who have grown companies from startup to IPO as well as healthcare practitioners. The Company is seeking $2.0 million to be used primarily to increase sales and marketing activities and expand into new geographic markets.