THE COMMITTEE TO RESTORE STOCKHOLDER VALUE
AN URGENT MESSAGE TO
COMPETITIVE TECHNOLOGIES, INC. STOCKHOLDERS
We believe Competitive Technologies is out of control; losses are mounting,
conflicts have divided management and the stock price has plummeted. In our
opinion, Competitive Technologies' viability as a public company is being
seriously threatened under current management.
While John Nano served as Chief Executive Officer and President of
Competitive Technologies from 2002 to 2005, our loyal team relentlessly
identified growth opportunities that drove profitability and value for our
shareholders. Our efforts succeeded as earnings rose $9.7 million over a period
of three years. Our management team achieved three consecutive years of
significant profit improvements, reaching $5.7 million in fiscal 2005. Our
record revenue and profit growth resulted in the Company being the fourteenth
largest percentage gaining stock in 2004 as reported by the Wall Street Journal
with an increase share price of 345%.
Unfortunately, our team's strong profitability for CTT was converted into
corporate and shareholder losses by the current Board and management after the
Board changed management 17 months ago. At that time, the success of our
management was reflected in CTT stock prices over $10 per share. During the
tenure of and because of actions by the current Board, 80% of CTT's stock market
value has been destroyed.
On the watch of the current Board and management, shareholder value was
squandered even as the overall stock market performs at record levels. In the
recently announced fiscal year 2006 results, revenues were reduced by nearly
$9.0 million (or 63%), and earnings by $8.1 million under CTT's current Board
and management. The current Board and management presided over a reversal of
CTT's fortunes from a 2005 profit of about $5.7 million, to a 2006 loss of
nearly $2.4 million this year. The $8.1 million reversal under the current
Board and management, from strong profitability to appalling losses, had the
predictable effect of cratering CTT's stock price. CTT's Board and management
have recorded losses every quarter after they changed management.
To restore our Company's profitability and shareholder value, we are firmly
committed to the replacement of the Board of Directors and return of our
successful management team. WE WILL SOON BE MAILING TO YOU PROXY MATERIAL
SOLICITING YOUR PROXY TO ELECT A SLATE OF DIRECTORS IN OPPOSITION TO THE SLATE
PROPOSED BY THE EXISTING MANAGEMENT GROUP. Our proxy will describe what we
believe are the failures of the current management. It will also describe the
extensive qualifications of our slate of candidates, whom we believe will return
to CTT substantial experience in the Company's business, a successful track
record in managing growth and serious management expertise through our legacy
team. Our team urgently asks for your support as a shareholder, advisor or
broker to restore the Company to profitability, to drive growth and to increase
shareholder value.
Please refrain from voting any proxy sent to you by the management of CTT
until you have had the opportunity to consider our material. ALTHOUGH WE ARE
NOT YET SOLICITING YOUR PROXY, WE ARE ANXIOUS TO HEAR YOUR VIEWS. PLEASE USE
THE COUPON BELOW TO SHARE WITH US YOUR CONCERNS ABOUT THE COMPANY. This
information will not be used for any other purpose.
Thank you in advance for your consideration to restore CTT to the bright
future our Company enjoyed under our past stewardship and will again enjoy upon
our return to CTT.
Sincerely,
THE COMMITTEE TO RESTORE STOCKHOLDER VALUE
John B. Nano, Committee Member and Director Nominee
TO: THE COMMITTEE TO RESTORE STOCKHOLDER VALUE
C/O CUTLER LAW GROUP
3206 WEST WIMBLEDON DRIVE
AUGUSTA, GA 30909
FAX: (706) 738-1966
EMAIL: RCUTLER@CUTLERLAW.COM
Name___________:_____________________________________________________
Stockholder [ ] of record or [ ] in street name
Brokerage firm holding your shares ______________________________
Number of Competitive Technologies Shares Held _________________
Your telephone number (day)(___)_________ (night) (___)__________
We appreciate your comments:________________________________________
______________________________________________________________________
______________________________________________________________________
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WE ARE NOT CURRENTLY ASKING YOU FOR A PROXY AND YOU ARE REQUESTED NOT TO SEND US
A PROXY AT THIS TIME.