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Special Note to Prospective Investor(s) Cetus is spearheading the creation of a totally new industry. Our ina- , bility to make predictions with certainty regarding which particular applications of molecular biology will prove most profitable in no way compromises the certainty that the revolution is real.* This very uncertainty as to the specifics dictates that Cetus maintain and build its leadership across a broad front - the leading edge of the field, wherever it occurs. This we have continued to do, as an examination of the scope of our projects, the physical reality and focus of our facili- ties, and the breadth of our skills will readily.demonstrate. Far from ,putting all our eggs in one basket, we have many eggs and many baskets. This, coupled with our ambitious and long-term aspirations, dictates serious and long-term goals on the part of any investors. Cetus is not a "get-rich-quick" scheme. It is not likely to make.sense to "go public," nor to sell out for quick gain. What, then, can,a,large investor expect? t, n First, an ongoing involvement with the highest-level of.excellence in a field of profound economic importance,,,:possibly with significant direct impact in an industry where the investor is="already irivolved. To de- scribe this as a "window on the techriology";fails to do justice to the special nature of Cetus. v o~~oy~ In many instances, as reflected in our,.current ctivities, this canlead to an "inside track" or a very'early awareness of potential projects or specific new developments that could be of profound interest to the in- vesting company. Needlessto say,"the terms of any commercial relation- ship must be worked out in a conventional negotiating framework. No two _Cetus-client relationships are identical. o A major benefit to a large industrial investor is the opportunity to work with Cetus anticipating,'and later integrating into its own product and process strategy, developments in molecular biology of special sig- nificance to the industrial "partner." This is probably far more meaningful to industrial investors than the traditional venture-capital timing and ROI considerations. 6° ~. ~ Obviously, the_purchase of sufficient Cetus stock will entitle the purchaser(s),:to.designate a member of the Board of Directors, which is elected by cumulative voting.- At present, common shareholders elect five, and preferred shareholders elect four members of the nine-member . r Board. *The analogy to Xerox, Polaroid, and indeed the entire semiconductor field is obvious. . . r ,, . ,.~ _ . -Y,f~i^K+Mr:i:-:.9..~'M..~....~~lArdi.r+.::=lS,..i.:h~ry3.k-.:'+~Y'.~.::.'Y.~Ari.'~w4.v~,....:...., .:.:i.~ar.~.. .~.~.+f'4W•XF-sre:ii`~I.CK .t.5~3.1.~f..yK3,M

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