STATUS REPORT ON MARKETING ACTIVITY AND CONTACTS IN NEW COUNTRIES

1. The chairman of the board and vice president of the Russian company "Mosveshinform", spent 4 days in Israel. We had commercial discussions with them and discussed ways of introducing our products into the Russian market and into the markets of countries of the former Soviet Union, such as Ukraine, Belarus and Moldova.

Both parties approved the agreement that they had entered into several months previously and decided on the operative steps for the marketing and sale of company products in the aforementioned countries. The important points are as follows:
The Russian company will begin its efforts in the police sector (including customs, prison service, etc.) in several important locations in Russia. Later, after completing all the paperwork required by the Russian Ministry of Health, the products will also be sold to the civilian market. It is assumed that the bureaucratic process may take up to six months. The Russian company has committed to purchasing at least 50,000 kits in the first year, with significant and consistent growth over the following years.

The Russian company will invest in all issues related to receipt of the appropriate approvals in Russia, including translation of all professional literature into Russian, hiring people to market and sell the products and particularly retired police officers with ranks of commander and higher who worked in the relevant areas during their service in the police.

At the meeting, the representatives of the Russian company shared information regarding the potential of our products in the Russian market. The data is very impressive. We have the impression that the Russian company has the ability, desire and connections needed to introduce our products into the Russian market.

During their stay in Israel, the Russians held meetings with the Division of Identification and Forensic Science, visited the drug lab and the Israel Anti-drug Authority.

2. Last month Identa entered into agreements with two different companies to represent it in Brazil and Indonesia. Each company has offices and regular staff in the respective countries. Brazil and Indonesia are two of the countries with the largest populations in the world, making them extremely important for Identa.

The companies that will represent us in both countries have well-established and long-term trade connections in Brazil and Indonesia.

In the next press release we will publish the names of the companies and the highlights of the agreements between the parties.

3. Mr. Baruch Goldstein, the senior partner in the company and the inventor of the new kits, retired from the police several months ago. In two weeks he will be receiving the research and development prize awarded annually by the Israel Minister of Internal Security. Mr. Baruch Goldstein is the only recipient of the prize.

4. The discussions on selling our products throughout the CVS drugstore chain are progressing well, and in a short while they will be offered for sale through the chain`s Internet site. We are currently completing all of the procedural issues and are in the final phase.

5. The Romanian delegation that will visit Israel between September 7-11 will be made up of 4 people, including to deputy ministers of the interior.

Identa Corp. develops, manufactures, and distributes proprietary on-site drugs-of-abuse testing products for the professional and civil markets. The Company`s products include rapid test kits for the detection of Marijuana/Hashish, Ecstasy, Cocaine/Crack, and Heroin.