During the recent year-end conference call PolyMedica told investors that Herbert Denton was leading the company’s response to the “investigation,” which is a U.S. Department of Justice criminal investigation of PolyMedica and certain of its officers. Mr. Denton has experience in investor communications, is a PolyMedica director and has a long-standing personal relationship with Steven Lee, PolyMedica’s Chairman and Chief Executive Officer. In addition, Mr. Denton has been appointed the Chairman of PolyMedica’s Committee of Directors that allegedly “oversees” the company’s handling of the criminal investigation.
We believe Mr. Denton has a duty to be independent and to provide accurate information concerning the large, very serious, and quite reasonably totally devastating, economic risks that PolyMedica’s shareholders are facing. We do not believe Mr. Denton has fairly advised investors of this actual risk. In fact, we believe Mr. Denton’s public statements improperly and wrongfully misled investors about these risks.
Here is our ###195.gif::May 28, 2002 letter to Chairman Denton.### Our earlier letter to Chairman Denton dated May 15, 2002 is available on our website by ###194.gif::clicking here.### We have not received any response from Chairman Denton.
Asensio & Company, Inc. believes PolyMedica’s results are not sustainable and that its stock is grossly overvalued. It is Asensio & Company, Inc.’s opinion that PolyMedica’s reported criminal conduct has grossly inflated its stated earnings and created liabilities that far exceed its highest-estimated asset value.