OxyFile #288

MEDIZONE SHAREHOLDER LETTER

January 23, 1998

Dear Shareholder,

Since taking the reins of Medizone International approximately six 
months ago, I can finally report that the business and regulatory errors 
of the past appear to be behind us. We can now begin to execute our 
research and development plans with a clear and concise understanding of 
where we are and how to reach our goal of obtaining regulatory approval 
for the patented Medizone ozone technology for treating lipid enveloped 
viruses of the blood.

Today I can report that we will soon be current with our SEC filings. 
The 1996 audit and the 10K report have been completed and should be 
filed by the time you receive this letter. Within a few weeks we will 
also be in full compliance with our 1997 SEC filings. The audits for 
1997 are on schedule to be completed on time. This is a major 
accomplishment as the filings had been badly neglected. Bringing these 
important documents current required new management to investigate all 
past Company claims and ensure that the record was set straight. This we 
have done. As required by the SEC, our 1997 filing of the 10K report 
will be completed and filed on or before March 31, 1998.

Hopefully you all received our October 29, 1997 letter to shareholders 
where I discussed our plans to visit Italy. The reasons for this trip 
were two-fold. First, we needed to reaffirm our commitment to commencing 
Human Clinical Trials in Europe. The objective is to receive European 
Union (EU) regulatory approval first and later return to the United 
States to seek United States Food and Drug Administration (FDA) 
approval. Another objective of the trip was to ascertain the status of 
the MEDIZONE ozone-generator being built for us in Italy by 
Multiossigen. 

This trip was successful. After meeting with Multiossigen, we determined 
our long-term objectives would be better served if we redesigned the 
instrument. A prototype of the generator should be ready for our review 
this quarter. In order to conduct human clinical trials, we must have a 
certified instrument to use in conducting the studies. This 
certification is expected by mid-summer. Once the studies begin, they 
will be conducted under strict European Standards. As I write this 
letter, I do not yet know if we will begin a Phase I or a Phase II 
study. We are hoping to begin a Phase II study treating adults with HIV.

Although we no longer have an open Investigational New Drug Application 
(IND) with the Food and Drug Administration (FDA), we were told that 
data gathered from the European studies would be acceptable to use as 
part of an FDA filing. Undoubtedly the FDA will require additional data, 
but it was reassuring to learn that they will accept the data generated 
from the clinical trials in Europe.

You have been extremely patient and loyal shareholders. You have 
demonstrated your commitment and belief in this innovative technology 
and the possibilities it offers humankind. Research and development 
stage companies work for years to obtain the regulatory approvals 
necessary to bring a new drug or medical instrument to the marketplace. 
Although we have been at this for a long time and expect to be awhile 
longer, I believe the climate for the acceptance of ozone as a viable 
human medical treatment is better than ever.

With the additional funding we hope to receive in the not too distant 
future, we should be able to forge ahead and reach our goal within the 
next several years. Thanks to your support, it is once again an exciting 
and energizing time for Medizone.

For a complete update on the Company, I suggest you call our Investor 
Relations firm, CTC, at (937) 434-2700 and request a copy of the 1996 
10K report.

Best wishes for a Happy New Year.

Milton G. Adair

President/CEO

This letter contains certain forward-looking statements about the 
Company's goals and anticipated future performance. The industry in 
which the Company proposed to operate is dynamic and intensely 
competitive and there are many factors that could cause the 
forward-looking statements contained herein not to occur or the timing 
of the occurrence to be delayed. With the exception of historical 
information, the matters discussed in this letter are forward-looking 
statements that involve substantial risks and uncertainties, including 
but not limited to, the results of ongoing clinical studies, economic 
conditions, product and technology development, production efficiencies, 
product demand, competitive products and competitive environment, 
availability of raw materials and critical manufacturing equipment and 
facilities and other risks identified in filings made with the 
Securities and Exchange Commission.

Source: http://www.medizoneint.com