NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
Proxy Organizer RESPONDS TO MOST RECENT IMPROPER ACTIONS BY ARTES MEDICAL
- Urges Shareholders to Join Proxy Group in its Efforts to Rescue the Company -
San Diego, CA – November 25, 2008 – Dr. H. Michael Shack (“Dr. Shack” or “Proxy Organizer”) released a necessary response to most recent events announced by Artes Medical Inc., (Nasdaq: ARTE) specifically about the dismissal of most of the Company’s staff and the mention of possible liquidation.
Dr. Shack commented, “We continue to forge forward and attempt to meet with the Board of Directors of Artes Medical to resurrect shareholder value. Our game plan remains the same: protect and preserve the status quo, reorganize, and become profitable. We believe that our financing strategy is a solution to keeping the Company alive and that liquidation is not a viable option. We have worked diligently in the last few months to prepare Artes for a successful turnaround, by having a committed roster of new directors along with a new and highly qualified management team that is prepared to grow Artes into a profitable medical device company.”
Dr. Shack continued, “We will take all necessary measures to make sure our financing strategy and proposed path-to-profitability are heard so a restructured board can revive Artes and undo the errors of the current board and management. We are tired of the board’s failure to act swiftly and boldly and believe that due to their own interests nothing has been done to protect the shareholders. In contrast to current management, the proxy group believes failure is not an option and most actions and statements of the current management team has caused undue pressure on Artes’ share price. We do not believe now is the time for shareholders to throw in the towel, but rather back our team and proposals so we can restart Artes Medical into a profit generating entity. Considering the terrible loss in recent shareholder value, time is of the essence and it is of utmost importance for shareholders to remain steadfast and join our group to support the only plan that places shareholders’ interests first. We’ll ensure your voice is heard and that building shareholder value is our top priority.”
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on the Proxy Organizer’s current beliefs and assumptions and on information currently available to the Proxy Organizer. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on any forward-looking statements included in this press release. These forward-looking statements represent beliefs and assumptions only as of the date of this document, and the Proxy Organizer assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.
IMPORTANT ADDITIONAL INFORMATION
On October 6, 2008, the Proxy Organizer filed a definitive proxy statement with the SEC in connection with the solicitation of proxies for the Artes Medical, Inc. 2008 Annual Stockholders’ Meeting (the “Proxy Statement”). The Proxy Organizer has mailed the Proxy Statement to all stockholders. The Proxy Statement contains important information about Artes Medical, Inc. All stockholders are urged to read the Proxy Statement carefully. Stockholders can obtain copies of the Proxy Statement and other documents filed by the Company and Proxy Organizer with the SEC for free at the SEC’s website at www.sec.gov. All proxy documents are also available in German language upon request from Mackenzie Partners at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com. The Proxy Statement is also available in German language on the internet at www.artesproxy.com.
The contents of the websites referenced above are not deemed to be incorporated by reference into the Proxy Organizer’s Proxy Statement.
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
DR. H. MICHAEL SHACK, PROXY ORGANIZER, GLADLY ACCEPTS ARTES MEDICAL BOARD’S INVITATION TO PRESENT HIS PLAN TO REVITALIZE ARTES MEDICAL, INC.
-Chides Board for Misrepresenting the Facts Once Again-
New York, NY – November 5, 2008 – Dr. H. Michael Shack (“Dr. Shack” or “Proxy Organizer”) announced today that Robert Binkele, a member of the Shack proxy group, was formally requested by Artes Medical, Inc.’s Chief Legal Officer, General Counsel, and Corporate Secretary to present a proposal to recapitalize Artes Medical, Inc. and discuss other strategic opportunities.
Dr. Shack noted, “We are excited to have the opportunity to present our plan to not only bring additional capital to Artes Medical but also to discuss a detailed plan of reorganization and other steps to allow Artes Medical, Inc. to fully attain its growth potential and provide shareholders maximum long term value .”
“I am chagrinned, however, that once again that certain members of the board have distorted the facts. In a press release issued after we received the board’s invitation, it was claimed that we requested a meeting with the board when in truth it was the board that requested that we send a copy of our proposal for financing to them and, in addition, present our proposal to the full board at its regularly scheduled board meeting at 10:00am EST on November 5, 2008 in New York.” Even more concerning is the continued characterization of our desire to return shareholder value to Artes Medical Inc., as abusive. Clearly the desire of the proxy group is to establish the financial stability, marketing, branding and educational models that have been nonexistent under the current management, and which have directly and negatively impacted shareholder value”.
“Furthermore, the press release once again states that the “proxy group was defeated in U.S. Federal Court” whereas the truth is that the judge merely declined to rule at that time pending further hearings on the matter”.
“Nevertheless, we will put aside these acts of bad faith by the few seeking to derail this process because we strongly believe that the board members will accept their fiduciary responsibility to re-establish the lost value to the shareholders through a major infusion of capital and by establishing and following a comprehensive marketing, branding, and educational program to solidify Artes Medical, Inc. as the pre-eminent provider of aesthetic products for the dermatology and plastic surgery markets in the United States. As an unbiased board, we are confident that they will respect their fiduciary duty and act in the best interests of the shareholders, through the reorganization and re-structuring proposed by our group.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on the Proxy Organizer’s current beliefs and assumptions and on information currently available to the Proxy Organizer. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on any forward-looking statements included in this press release. These forward-looking statements represent beliefs and assumptions only as of the date of this document, and the Proxy Organizer assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.
IMPORTANT ADDITIONAL INFORMATION
On October 6, 2008, the Proxy Organizer filed a definitive proxy statement with the SEC in connection with the solicitation of proxies for the Artes Medical, Inc. 2008 Annual Stockholders’ Meeting (the “Proxy Statement”). The Proxy Organizer has mailed the Proxy Statement to all stockholders. The Proxy Statement contains important information about Artes Medical, Inc. and the Annual Meeting. All stockholders are urged to read the Proxy Statement carefully. Stockholders can obtain copies of the Proxy Statement and other documents filed by the Company and Proxy Organizer with the SEC in connection with the Annual Meeting for free at the SEC’s website at www.sec.gov. The Proxy Organizer is deemed a participant in the solicitation of proxies from stockholders in connection with the Annual Meeting. All proxy documents are also available in German language upon request from Mackenzie Partners at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
Dr. Shack’s Proxy Statement is available in English and German language on the internet at www.artesproxy.com.
The contents of the websites referenced above are not deemed to be incorporated by reference into the Proxy Organizer’s Proxy Statement.
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
DR. H. MICHAEL SHACK, PROXY ORGANIZER, RESPONDS TO ARTES MEDICAL, INC.’S MISLEADING PRESS RELEASES
New York, NY – October 31, 2008 – Dr. H. Michael Shack (“Dr. Shack” or “Proxy Organizer”) announced today that Artes Medical’s (Nasdaq: ARTE) October 30, 2008 press release noting that Artes adjourned its annual meeting of shareholders because it lacked a quorum was misleading and did not give the full accounting of the facts.
In response, Dr. H. Michael Shack stated, “Once again, Artes Medical’s Board of Directors has distorted the situation and given incomplete answers to questions and innuendos instead of facts.”
In particular, shareholders should note the following:
1) The proxy group has not been defeated. The “ex parte” hearing only postponed the opportunity to present our case before the federal court. We intend to present the facts and the inequitable actions of the present management of Artes Medical before the appropriate court.
2) Artes Medical refused to allow our proxy to be included in the annual meeting thereby disenfranchising all shareholders who did not agree with management and then accused us of refusing to participate in the Annual Meeting. This is a ridiculous statement, asking that the disenfranchised voters cut their own throats by attending and having their presence be used against them while their votes are not counted.
3) It is our intent to give more rights to the shareholders and change onerous bylaws that take away shareholder rights with bylaws that respect and give voice to each shareholder.
4) It is not our intent to “steal” the Company, but rather to turn it around from the inept and disastrous actions of the current management. We are more than willing to meet with current management and the board of directors at any time to discuss our plans and enable operations to continue unabated.
5) It is our intent to properly launch and build the ArteFill® brand based on abundant scientific evidence supporting its safety and efficacy and we have spent considerable thought and discussion to prepare a clear and comprehensive marketing plan and execution strategy including heavy DTC marketing that we are prepared to present to the board at its next meeting scheduled for Wednesday, November 5, 2008.
6) We have identified a highly qualified candidate to fill the key position of Executive Vice President- Sales and Marketing, namely Vince Colonna. Vince Colonna’s credentials are impressive – a 30-year veteran in the U.S. product and personal aesthetics industry where he has successfully executed corporate re-organizations for many well-known consumer goods companies including Procter & Gamble, Vidal Sassoon and REVLON, INC.
7) We have identified a highly qualified CFO candidate in Bill Kachioff.
8) We will heavily focus on expense management to significantly reduce the Company’s operating costs.
9) Recognizing the need for a capital infusion, we have financing proposals of a minimum of $30 million including a bridge financing that would also be offered to all shareholders, not a select few, on a “first right of refusal” basis. We are prepared to present this financing proposal to the board at the next meeting.
10) A new independent re-structured board would be established that would represent the diverse interest of the various parties, including three new representatives to be picked by the current board (NGN Capital and Cowen Healthcare Royalty Partners will retain their right to one seat each) and two candidates selected by the proxy group to replace Mr. Christopher Reinhard, the current Executive Chairman, and Mr. John R. Costantino.
11) The proxy group’s marketing plan includes a strong focus on hands-on peer-to-peer injection training of ArteFill® as well as the establishment of ArteFill® Centers of Excellence across the country in addition to a focused effort on direct-to-consumer marketing. It also includes the re-engagement of crucial physician key opinion leaders who are members of the Artes Medical Scientific Advisory Board.
12) At the same time, the proxy group will advance the development of new and exciting pipeline indications such as GERD (Heartburn) and Spinal Disk Repair.
In conclusion, Dr. Shack stated, “We have not spent the time, effort and expense to allow the incumbent management to continue its history of failed efforts, self-dealing activities and disenfranchisement of a large number of shareholders. The facts will show that our cause is just and that change is needed. While we are always willing to sit down and discuss a satisfactory resolution, we will nonetheless continue to press our case through the appropriate legal channels until we are vindicated.”
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on the Proxy Organizer’s current beliefs and assumptions and on information currently available to the Proxy Organizer. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on any forward-looking statements included in this press release. These forward-looking statements represent beliefs and assumptions only as of the date of this document, and the Proxy Organizer assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.
IMPORTANT ADDITIONAL INFORMATION
On October 6, 2008, the Proxy Organizer filed a definitive proxy statement with the SEC in connection with the solicitation of proxies for the Artes Medical, Inc. 2008 Annual Stockholders’ Meeting (the “Proxy Statement”). The Proxy Organizer has mailed the Proxy Statement to all stockholders. The Proxy Statement contains important information about Artes Medical, Inc. and the Annual Meeting. All stockholders are urged to read the Proxy Statement carefully. Stockholders can obtain copies of the Proxy Statement and other documents filed by the Company and Proxy Organizer with the SEC in connection with the Annual Meeting for free at the SEC’s website at www.sec.gov. The Proxy Organizer is deemed a participant in the solicitation of proxies from stockholders in connection with the Annual Meeting. All proxy documents are also available in German language upon request from Mackenzie Partners at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
Dr. Shack’s Proxy Statement is available in English and German language on the internet at www.artesproxy.com.
The contents of the websites referenced above are not deemed to be incorporated by reference into the Proxy Organizer’s Proxy Statement.
DR. H. MICHAEL SHACK, PROXY ORGANIZER, FILES FEDERAL COMPLAINT AGAINST ARTES MEDICAL, INC. AND ITS BOARD OF DIRECTORS
New York, NY – October 27, 2008 – Dr. H. Michael Shack (“Dr. Shack” or “Proxy Organizer”) announced today that he filed a complaint on October 22, 2008 in the United States District Court, Southern District of California, against Artes Medical, Inc. (NASDAQ: ARTE) (the “Company”) and its Board of Directors (the “Board”) (the “Complaint”). The Complaint alleges that the Company and the Directors have filed false and misleading proxy statements with the Securities and Exchange Commission (the “SEC”) and the Directors have breached their fiduciary duties owed to stockholders.
The defendants in the Complaint are Artes Medical, Inc.; Christopher J. Reinhard; Douglas Abel; John R Constantino; Todd C. Davis; Beverly A. Huss; Lon E. Otremba; and Robert B. Sherman.
The Complaint alleges that the Company and the Board filed a proxy statement with the SEC that materially misrepresents the validity of Dr. Shack’s proxy solicitation.
The Complaint seeks:
1. Temporary Restraining Order declaring that:
A. Dr. Shack’s proxy recommendations will be heard and voted upon at the 2008 Artes Annual Stockholders’ Meeting (the “Annual Meeting”);
B. All stockholders, including Dr. Shack, may attend, speak and vote at the Annual Meeting; and
C. The proxies Dr. Shack has received or will receive will be counted at the Annual Meeting.
2. A Preliminary Injunction against the Company and the Directors enjoining and restraining them from interfering with Dr. Shack’s attempt to exercise and vote the proxies he currently holds or will receive at the Annual Meeting.
The declaratory and injunctive relief sought in the Complaint is necessary to ensure that all stockholders’ proxy votes will be counted at the Annual Meeting. Without truthful information about Dr. Shack’s recommendations, the stockholders will be irreparably harmed.
Dr. Shack urges stockholders to review all the materials that have been filed with the SEC to ensure that they are fully informed prior to casting their votes at the 2008 Annual Meeting whether in person on October 30, 2008 or by proxy.
-More-
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on the Proxy Organizer’s current beliefs and assumptions and on information currently available to the Proxy Organizer. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on any forward-looking statements included in this press release. These forward-looking statements represent beliefs and assumptions only as of the date of this document, and the Proxy Organizer assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.
IMPORTANT ADDITIONAL INFORMATION
On October 6, 2008, the Proxy Organizer filed a definitive proxy statement with the SEC in connection with the solicitation of proxies for the Artes Medical, Inc. 2008 Annual Stockholders’ Meeting (the “Proxy Statement”). The Proxy Organizer has mailed the Proxy Statement to all stockholders. The Proxy Statement contains important information about Artes Medical, Inc. and the Annual Meeting. All stockholders are urged to read the Proxy Statement carefully. Stockholders can obtain copies of the Proxy Statement and other documents filed by the Company and Proxy Organizer with the SEC in connection with the Annual Meeting for free at the SEC’s website at www.sec.gov. The Proxy Organizer is deemed a participant in the solicitation of proxies from stockholders in connection with the Annual Meeting. All proxy documents are also available in German language upon request from Mackenzie Partners at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
Dr. Shack’s Proxy Statement is available in English and German language on the internet at www.artesproxy.com.
The contents of the websites referenced above are not deemed to be incorporated by reference into the Proxy Organizer’s Proxy Statement.
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
SECURITIES AND EXCHANGE COMMISSION (sec) CLEARS PROXY STATEMENT FILED BY
ACTIVIST SHAREHOLDER OF Artes Medical, Inc.
- Proxy Seeking to Replace Five Board Directors -
- Proxy Solicitation Firm to Contact Shareholders to Solicit Votes Ahead of Next Annual Shareholders’ Meeting to Be Held on October 30, 2008 –
New York, NY – October 6, 2008 – Dr. H. Michael Shack, Proxy Organizer and shareholder of Artes Medical, Inc. (NASDAQ: ARTE), announced today that his proxy statement has been cleared by the U.S. Securities and Exchange Commission and he can now commence soliciting proxies from shareholders for the election of five new candidates to join the Board of Directors of Artes Medical, Inc. (the “Company”) at the 2008 annual meeting to be held on October 30, 2008 at 10:00am PT at the San Diego Marriott Del Mar located at 11966 El Camino Real, San Diego, California. All shareholders will receive Dr. Shack’s proxy statement, along with a BLUE proxy card, shortly.
Dr. Shack stated, “I am excited that my team can now proceed with our proxy solicitation and, with the help of my fellow Artes shareholders, implement positive changes to the Artes Medical Board of Directors. I urge all shareholders to return the BLUE proxy card immediately – make your voice heard.”
Dr. Shack has engaged MacKenzie Partners, Inc. to conduct the proxy solicitation. MacKenzie Partners will solicit the votes of all shareholders on behalf of Dr. Shack and be available to answer their questions. A website has been created to provide shareholders with updates on Dr. Shack’s solicitation campaign – www.artesproxy.com – all documents on the website will also be available in German language.
A BLUE proxy card will be mailed to all shareholders who are encouraged to immediately sign, date and return it to MacKenzie Partners in order to vote their shares in favor of Dr. Shack’s proposals.
Dr. Shack is seeking to replace two current board members whose terms have expired and remove three current Board Members ‘for cause’ and elect the following as new Board Members: Charles A. Schliebs, Terry Knapp, M.D., Robert Binkele, Eric Donsky and Dr. Michael Shack, among other items as listed in the proxy statement.
If you have any questions or need assistance voting your shares, you can reach MacKenzie Partners, Inc. at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
Forward-Looking Statements
This letter to stockholders contains forward-looking statements that are based on the Proxy Organizer’s current beliefs and assumptions and on information currently available to the Proxy Organizer. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. As a result of these risks, uncertainties and other factors, readers are cautioned not to place undue reliance on any forward-looking statements included in this letter to stockholders. These forward-looking statements represent beliefs and assumptions only as of the date of this letter, and the Company assumes no obligation to update these forward-looking statements publicly, even if new information becomes available in the future.
Important Additional Information
On October 6, 2008, the Proxy Organizer filed a definitive proxy statement with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for the Company’s 2008 annual meeting of stockholders (the “Proxy Statement”). The Proxy Organizer will mail the Proxy Statement to stockholders prior to the annual meeting. The Proxy Statement contains important information about the Company and the annual meeting. The Company’s stockholders are urged to read the Proxy Statement carefully. Stockholders will be able to obtain copies of the Proxy Organizer’s 2008 Proxy Statement and other documents filed by the Company with the SEC in connection with the Company’s 2008 annual meeting of stockholders for free at the SEC’s website at www.sec.gov. The Proxy Organizer is deemed a participant in the solicitation of proxies from stockholders in connection with the Company’s 2008 annual meeting of stockholders.
The contents of the websites referenced above are not deemed to be incorporated by reference into the Proxy Organizer’s Proxy Statement.\
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
SHAREHOLDER files Derivative complaint against management and
board members of Artes Medical, INC.
- Complaint Filed in Superior Court, State of California, County of San Diego –
BARRY RUBIN VS. CHRISTOPHER J. REINHARD,
Case No. 37-2008-00091039-CU-NP-CTL, Filed 09/04/2008
- Complaint includes breach of fiduciary duty –
San Diego, CA – September 10, 2008 – Dr. H. Michael Shack, Proxy Organizer shareholder of Artes Medical, Inc. (NASDAQ: ARTE), announced today that a shareholder named Barry Rubin, filed a derivative complaint in Superior Court, State of California, County of San Diego against several members of Artes Medical, Inc.’s current management team and its Board of Directors. The derivative complaint was filed for: Breach of fiduciary duty, breach of duty of loyalty, and waste of corporate assets. The complaint can be obtained by contacting MacKenzie Partners, Inc. at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
People listed as defendants in the complaint are: CHRISTOPHER J. REINHARD, DOUGLAS ABEL, JOHN R CONSTANTINO, TODD C. DAVIS, BEVERLY A. HUSS, LON E. OTREMBA, ROBERT B. SHERMAN, MICHAEL K. GREEN, DIANE S. GOOSTREE, PETER C. WULFF, DAREN J. BARONE, and DOES 1–20.
Within the text of the complaint, several allegations against the current management team and board of directors are mentioned, which undermine their capabilities to be operating Artes Medical. Allegations included are: self-dealing, illegal tipping and excessive payments to former officers, channel stuffing, the Zeoli/Reinhard connection, poison pill, failure to hold annual meeting of stockholders, profit grants without shareholder approval, misleading financial statements for third quarter of 2007, and misleading statements to boost investor confidence.
The Proxy Organizer has retained MacKenzie Partners, Inc. to conduct the proxy solicitation and has requested a shareholder list from Artes Medical in order to communicate with shareholders concerning the efforts to replace the Board of Directors of Artes Medical, Inc. with a new slate proposed in the preliminary proxy statement.
If you have any questions, you can reach the Proxy Organizer's proxy solicitation firm of MacKenzie Partners, Inc. at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
Group Reacts
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
proxy group Reacts to recent stock activity in artes medical, inc.
- Group Proposes William G. Kachioff as future Chief Financial Officer –
- Proxy Organizer Preparing Formal Plan to Present at Upcoming Shareholders’ Meeting –
- Plan includes Recommendations to Satisfy NASDAQ Listing Requirements
and Road Map to Profitability -
San Diego, CA – September 3, 2008 -- Dr. H. Michael Shack, Proxy Organizer shareholder of Artes Medical, Inc. (NASDAQ: ARTE), announced today on behalf of dissatisfied shareholders, several steps in preparation for the upcoming annual shareholders’ meeting scheduled to be held in San Diego, CA on October 30, 2008...
The Proxy Group recently designated Mr. William G. Kachioff the future Chief Financial Officer of Artes Medical. Mr. Kachioff is a results-driven senior executive with extensive operational, financial and management experience, including 18-years in life science companies. This includes six years at Abbott Labs [NYSE: ABT], Vivus (1996-1998) [NASDAQ:VVUS], Cutera (1998-2001) [NASDAQ:CUTR], MicroIslet (2002-2006) [AMEX:MII], and Clarient (2007) [NASDAQ:CLRT]. Mr. Kachioff has experience in all aspects of financial management, SEC reporting, accounting, legal affairs, treasury, and investor relations for early-stage to mature life science businesses, several of them in the personal aesthetics market. . He has also completed a wide variety of financing transactions totaling approximately $100 million. Currently he is a partner in the San Diego practice of Tatum, LLC – a national executive services firm focused on the Office of the CFO.
Commenting on the designation by the Proxy Group, Mr. Kachioff stated, “I am pleased to bring my experience and expertise to assisting Artes stockholders in maximizing shareholder value. There is much to accomplish, and given my professional background combined with the strong attributes and market potential of ArteFill ®, I believe that along with a new management team and sufficient capital, Artes Medical can regain full compliance with NASDAQ continued listing standards and become a profitable company in a relatively short amount of time. I expect the combination of these two events will be highly important to building value in Artes and something the marketplace will recognize once confidence is restored. It is critical that Artes Medical immediately rationalize expenditures, increase profit margins, refocus on increasing market share and pursue additional medical indications for its unique platform technology, as well as align its personnel structure with its financial goals in order to achieve profitability as soon as possible.”
Mr. Kachioff’s designation is one of several steps the Proxy Organizer is currently taking to properly prepare for the upcoming Artes Medical annual shareholders’ meeting in late October.
In addition to these steps, the Proxy Organizer continues to hear from concerned shareholders in Artes Medical, who are calling for a change in management because they strongly believe in the Company’s lead product ArteFill® and its future potential as a platform technology for the treatment of various medical conditions.
Dr. Richard Fitzpatrick, Laser Surgeon and Cosmetic Dermatologist, La Jolla Cosmetic Surgery Center, stated:
“I think ArteFill is a very safe product and my patients like the results. I have not had a single patient with an adverse reaction or problem of any kind using ArteFill. I like that ArteFill, the only permanent wrinkle filler, is available for a lot of patients, who desire enduring results where they don’t have to come back and/or require surgery. I have found ArteFill to be also very useful for depressed scars, most commonly acne scars on a patient’s face, neck and chest.”
Dr. Fitzpatrick concluded, “I am looking forward to new leadership at Artes Medical that values crucial feedback from physician customers, something that was lacking before.”
Dr. Johan E. Brahme, double board certified Plastic Surgeon, La Jolla Cosmetic Surgery Centre, remarked:
“Since the introduction of ArteFill to the U.S. market in early 2007, I have become an enthusiastic supporter. In addition to the traditional use of ArteFill in naso-labial folds, I have found it to be very useful in many other facial applications. Our office has injected hundreds of patients with ArteFill and none have had any significant complications. In my view, ArteFill’s disappointing sales are mainly due to the lack of patient awareness of the product. I believe this is a result of the current management’s ineffective marketing strategies and their lacking pursuit of other medical indications.”
Dr. Miles Graivier, North Atlanta Plastic Surgery, Atlanta, Georgia, commented:
“I have been following the evolution of ArteFill very closely from the pre-FDA approval process all the way through commercialization, and have found the product to be the safest product for permanent filler usage. I find that patients who have what we refer to as ‘filler fatigue’, which is common among those who need to return every 6-12 months, prefer ArteFill because it is safe and effective, as well as cost-effective, because it requires only one or two treatment sessions. I have not seen any significant side effects or adverse reactions after two years of use and the level of satisfaction from patients using ArteFill has been very high. I believe there is a definite need for a safe permanent filler in the cosmetic marketplace, and ArteFill fills that void.”
About The Proxy Organizer
The Proxy Organizer is dissatisfied with the Board of Directors of the Company and its management team. He believes that the Company’s poor financial performance, lack of expressed business plan, and questionable changes to key personnel are impairing the Company’s ability to maximize value for all shareholders.
The Proxy Organizer has retained MacKenzie Partners, Inc. to conduct the proxy solicitation and has requested a shareholder list from Artes Medical in order to communicate with shareholders concerning the efforts to replace five members of the Board with a new slate proposed in the preliminary proxy statement.
Artes Medical Inc., based in San Diego, Calif., is a medical aesthetics company focused on developing, manufacturing and commercializing new and innovative medical aesthetic products including injectable products for the dermatology and plastic surgery markets. The Company’s initial product, ArteFill, is being marketed to men and women as a treatment option for the correction of naso-labial folds.
If you have any questions, you can reach the Proxy Organizer's proxy solicitation firm of MacKenzie Partners, Inc. at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com
ACTIVIST SHAREHOLDER OF Artes Medical, Inc. Files Proxy Statement with SEC
- Proxy Organizer urges Company to Call Annual Meeting on September 19, 2008 –
- Proxy Organizer Seeking to Replace Five Board Directors -
New York, NY – August 11 2008 – Dr. H. Michael Shack, Proxy Organizer shareholder of Artes Medical, Inc. (NASDAQ: ARTE), announced today his intention to solicit proxies for the election of five new candidates to join the Board of Directors of Artes Medical, Inc. at an annual meeting proposed for September 19, 2008.
As indicated in a Preliminary Proxy Statement filed today with the SEC, Dr. Shack will solicit proxies to replace two board members whose term has expired and remove three current Board Members and elect the following as new Board Members: Charles A. Schliebs, Terry Knapp, M.D., Robert Binkele, Barry Vogel, and Eric Donsky.
Dr. Shack stated, “The Director Nominees presented in the Proxy have a proven track record in the personal aesthetic industry to unleash the full potential of ArteFill and position the Company for future growth.”
Mr. Schliebs is the co-founder and managing director of iNetworks Advisors, Inc., iNetworks BioOpportunity Fund, LP, and iNetworks Private Fund, LP. iNetworks is a venture capital/private equity group investing primarily in healthcare/life science ventures in North America. Prior to iNetworks, Mr. Schliebs was a partner from 1988 through 1999 with Jones Day, a 2,300-lawyer, international law firm, where he directed the firm’s life sciences practice group worldwide.
Dr. Knapp, a world-renowned plastic surgeon and co-founder of Collagen Corporation, pioneered the injectable-wrinkle filler industry. Dr. Knapp is Chairman of the Board of VisioNetx, Inc., a private spin-off from AcuNetx in the field of human impairment testing.
Mr. Vogel is the President of Canderm, Inc., Canada’s leading privately held skin care company and has successfully launched Artecoll®, the predecessor to ArteFill® into the Canadian market. He is also considered a leading marketing expert in the dermal filler industry, having thoroughly researched numerous fillers available throughout the world and distributing a unique and complete portfolio comprising a temporary, semi-permanent and permanent filler (Artecoll/ArteSense®).
Mr. Donsky is the CEO of OcuSense, Inc., a San Diego, Calif.-based an in-vitro diagnostics company. Mr. Donsky has 15 years experience in building biotechnology and life science companies as a founder and senior manager.
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Mr. Binkele is the founder and CEO of the Estate Planning Team, Inc., which has grown to service over 2,200 securities advisors, CPAs, attorneys and other professionals nationwide. Mr. Binkele is also a branch manager and investment advisor for J.P. Turner & Co.
The Proxy Organizer is dissatisfied with the Board of Directors of the Company and its management team. He believes that the Company’s poor financial performance, lack of expressed business plan, and questionable changes to key personnel are impairing the Company’s ability to maximize value for all shareholders.
The Proxy Organizer has retained MacKenzie Partners, Inc. to conduct the proxy solicitation and has requested a shareholder list from Artes Medical in order to communicate with shareholders concerning the efforts to replace five members of the Board with a new slate proposed in the preliminary proxy statement.
Artes Medical, based in San Diego, Calif., is a medical aesthetics company focused on developing, manufacturing and commercializing new and innovative medical aesthetic products including injectable products for the dermatology and plastic surgery markets. The Company’s initial product, ArteFill, is being marketed to men and women as a treatment option for the correction of nasolabial folds.
If you have any questions, you can reach the Proxy Organizer's proxy solicitation firm of MacKenzie Partners, Inc. at (212) 929-5500 or via e-mail at proxy@mackenziepartners.com.
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
Stephen D. Axelrod, CFA (Investors)
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500
steve@wolfeaxelrod.com