Advanced Container Technologies Inc 's

While the Medtainer® is a patented product, similar products are being sold. We have not determined whether these products conflict with the Medtainer® patent and, since we do not hold the patent, we are unable to enforce it if such a conflict exists. We have not determined to what extent these products have affected our business. We face competition of varying degrees of intensity in the sale of our products and compete with, and seek to distinguish ourselves from multiple companies principally on the basis of the uniqueness and quality of our products, price, service, quality, product characteristics and timely delivery of orders. We also stress the maintenance of strong relationships with our direct customers, as well as our distributors and, where possible, their and our customers. Our Medtainer® products compete with metal, glass, paper and other packaging materials as well as plastic and resin packaging materials made through different manufacturing processes. Most of our existing and potential competitors have greater brand name recognition and their products may enjoy greater initial market acceptance among our potential customers. In addition, many of these competitors have significantly greater financial, technical, sales, marketing, distribution, service and other resources than we have and may also be better able to adapt quickly to customers’ changing demands and changes in technology, to enhance existing products, to develop and introduce new products and new production technologies and to respond timely changing market conditions and customer demands. If we are not able to compete successfully in the face of our competitors’ advantages, our ability to gain market share or market acceptance for the products that we sell could be limited, our revenues and our profit margins could suffer, and we may never become profitable.