Commercial uses of the H-4D BioPacer™ system - a simple study of the market

There are dramatic differences in the motivations and sizes of these customer segments:

The health market represents all the customers that would benefit from diagnosis,
treatment, and cures for a mental illness or brain disorder.

This market has been documented to be dramatically under served in the United States
and the world.

Only about one-third of the potential market is actually served, leading to the two related
conclusions: (1) the market has not reached its full potential and (2) the direct and indirect
cost burden to the customers (and their governments) might change dramatically.

Estimates vary on the potential revenue of the neuro-technology health market, but a
reasonable estimate can be bounded by current revenue reports (as the low estimate) and
total impact or cost burden (as the high estimate).

Cost burden estimates include the cost of products and services as well as the indirect cost
of no treatment.

As-is, neuro-technology company revenue is about $120 billion; whereas total economic
burden in the United States is on the order of $1 trillion per year and the world burden is
about twice that.

NIMH (National Institutes of Mental Health) has stated that over 50 percent of Americans
will suffer from a mental disorder in their lifetime. (From stress to depression for instance).

But the ability of this consumer group to pay for or get access to diagnosis, treatment, and
cures constrains the health market segment.

In other words, the demand exceeds the market’s ability to provide goods and services in
this segment. This opens a vast potential for the personal consumer BioPacer system.

The enhancement segment is largely underground, but growing.

For example, healthy consumers cannot legally get a prescription to improve their
attention or memory.

Enhancement: There is significant anecdotal information that healthy people do take

Alzheimer medication (Aricept), medication to treat narcolepsy (modafinil), and
medication to treat attention deficit disorder (Ritalin) to improve performance.

Sleep and wake medications, e.g., zolpidem and armodafinil, respectively, as products for
enhancement represent a pharmaceutical market of over $5 billion.

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 Commercial uses of the H-4D BioPacer™ system - a simple study of the market

This market is generally more acceptable because one can be otherwise healthy and get a
prescription.

In many cases, the enhancement market is served by the off-label use of products and
services created for the health market.

It is clear that the aging U.S. population will be a significant driver for this market.

Biopacer assistance:

Psychological state or process can change throughout life as a function of factors: 1) sleep,
2) maturation, 3) experience, 4) damage, 5) exogenous (e.g., pharmacological) agents or a
combination of these.

Indeed, most post-stroke rehabilitation therapy (e.g., relearning walking, talking) would be
ineffective if brain plasticity were not possible. Plasticity refers to the ability of the brain to
re-wire itself, (or wire itself if learning).

Brain plasticity is manifested in at least three ways. One involves functional shifts and
changes that occur when control of “motor behavior” reorganizes itself in a different area
of the cortex as a result of experience. (Learning to ride a bicycle for instance).

A second way, termed synaptic plasticity, involves changes in neuro-receptor production

and/or sensitivity that potentiate or antagonize the likelihood of synaptic transmission. A
person can create a phobia or a “block”, or a bad habit, and those synaptic “re-wirings”
can become difficult to remediate under chemical treatments.

A third way, at least speculatively, brain plasticity may manifest itself is changes in brain
structure; that is, actual changes in the number of neurons and synapses, the most obvious
examples of which are increases occurring early in life and decreases occurring as a result
of lesions or aging. Diminishing cognitive aging effects, memory improvement, demential
reduction would be possible.

A BioPacer system would allow for numerous healing and treatment methods, as well as
simple depression and stress reduction. The “enhancement markets” are too numerous to
quantify.

For detailed statistics, see the National Institute of Mental Health Web site at http://
www.nimh.nih.gov/health/topics/statistics/index.shtml.

For additional information, see the World Health Organization Web site at http://
www.who.int/healthinfo/bod/en/index.html for additional information.

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