Nicodrops Report to Shareholders


IMPERIAL BEACH, Calif, May 8, 2007 (PRIME NEWSWIRE) -- Christopher Calpito, CEO of Nicodrops, Inc. (Pink Sheets:NCDP), developer of the drug-free, non-nicotine smoking alternative, herbal dietary supplement, today released a report to shareholders:

In my last communication with you on September 11, 2006, I had anticipated having enough news and information to provide you to justify a quarterly communication. As it turns out, our business prospects did not move as fast as we anticipated, thus I waited until now to provide shareholders with an update.

With that said, we have a lot of great news to report for 2007. Although we still maintain our relationships with the retailers and distributors, Nicodrops is making a major direct-to-consumer push to take full advantage of the world's smokers who are trying to quit. At last count, according to the American Heart Association, there are over 46,000,000 smokers in America alone. If just .001% of these smokers try a 30-day supply of Nicodrops, Nicodrops can achieve over $2.28 million in annual revenues. If we get .01%, that number grows to $22.8 million. Looking at the worldwide smokers, it is staggering to know there are over 1,100,000,000 smokers. The potential is truly amazing, so we are starting to aggressively pursue this market directly through proven methods and mediums.

New website:

We have partnered with Yahoo!, Google and MSN preferred vendor, Colorado Web Solutions, to completely revamp and redesign Nicodrops.com. Colorado Web Solutions (CWS) has been working with online businesses since 1997. The primary focus for CWS is Yahoo! store development, and affiliate management. Nicodrops and CWS have teamed up to take Nicodrops to the next level. Not only will Nicodrops have a new state-of-the-art Yahoo! site to showcase Nicodrop's excellent product line but we are also expanding our marketing initiatives with an affiliate program. With the combination of a premier design company, new marketing initiatives and an unparalleled product, Nicodrops and Colorado Web Solutions look forward to a dynamic relationship.

The new and drastically improved site will go live this week, and we anticipate a very successful re-launch. We have been working hard with our developers and strategic partners on designing the site to provide the necessary information for smokers who desire to stop smoking. Our new shopping cart is easy-to-use, and makes purchasing Nicodrops more convenient.

Search Engine Optimization

With our new SEO/SEM partner, we are implementing very sophisticated Search Engine Optimization and Search Engine Marketing programs for the site, and plan to show up on the 1st page search results for the top 5 search phrases: Stop Smoking; Quit Smoking; Smoking Cessation; Smoking; and Smoking Help.

On average over 3.2 million smokers in just the U.S. alone are still looking to stop smoking on the Internet every month as reported by the Yahoo!, Google and MSN.

Nicodrops is utilizing the mass marketing capabilities of YouTube and MySpace by strategically placing the company's infomercials on these sites, resulting in maximum consumer exposure.

Affiliate Marketing

Nicodrops is in final negotiations with a well-respected NASDAQ company, which is a leader in the affiliate marketing space. Our new affiliate marketing campaign will launch soon after the new Nicodrops.com website goes live. We will release more details regarding this exciting new affiliate marketing partner soon.

On the retail front, we are pleased to inform you Nicodrops are still being sold through Walgreens, CVS.com, PureZing.com and other boutique outlets. Through the success of our new and aggressive online campaign, we feel confident we will attract more attention from additional retailers throughout the year.

Thank you once again for your patience, and I look very forward to providing you with much improved financial results in the very near future, which we expect will result in a higher share price of your stock.

Nicodrops, Inc., Imperial Beach, Calif., developed a drug-free, non-nicotine product which helps reduce the stress associated with not smoking, using all natural herbs.(i) For more information go to http://www.nicodrops.com or call 1-619-424-9521.

This press release contains ``forward-looking statements'' within the meaning of the Private Securities Litigation Act of 1995. The words ``believe,'' ``expect,'' ``anticipate,'' and ``project,'' and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. Such statements may include, but not be limited to, projections of revenues, income or loss, expenses, plans, and assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future results could differ materially from those described in forward-looking statements.

(i) These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any diseases.


 Yours truly,
 Christopher Calpito, CEO


            

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