Since the founding of our company in 1968 by William Ash, Reliable Biopharmaceutical Corporation has based its success on the simple philosophy of responding to customer抯 needs. We have used customer focused manufacturing, fueled by technical innovation, to create value for our customers, our employees and the local community.

Initial successes with Small Business Innovation Research grants from the National Institutes of Health, including the prestigious Tibbetts Award in 1997, laid the technical foundation that defines us as a company. Today, Reliable Biopharmaceutical Corporation uses these skills to provide custom research, development and manufacturing services to the pharmaceutical industry.

We have become a leader in our business with eleven drug master files for the manufacture of active ingredients either currently used in generic injectible pharmaceuticals or under active review by the FDA. Our marketing partners in turn provide these therapeutics to patients with serious or life threatening illnesses. Biotech and innovator pharmaceutical companies also use other products manufactured by Reliable Biopharmaceutical Corporation as processing aids or excipients.

2006 was our third consecutive year of outstanding sales and earnings growth as our business model, based on providing valuable development services to the generic injectible pharmaceutical business, continues to pay dividends. We broadened our product offerings and development capabilities in 2006 by collaborating with several domestic and foreign companies. As the year ended, Reliable Biopharmaceutical Corporation was pursuing more opportunities with the most diverse cross section of customers at any time in our history.

Investment in resources and infrastructure continues. We commissioned a new high containment suite for the manufacture of potent compounds and significantly increased our headcount to support our future direction. An initiative to expand our capacity and product offerings for high purity pharmaceutical processing chemicals used in down stream processing of biologicals was also initiated late in the year.

Our strategies include an enhanced EHS management approach coordinated with a leading national industrial hygiene consulting firm, and renewed working relationships with research universities to gain faster access to state of the art analytical equipment and product characterization skills.

As always, our employees are working hand-in-hand with our customers to bring speed and cost effective solutions to the marketplace.