On July 8, 2008, pursuant to authority
granted to them by our board of directors, John Bowers, our President and Chief Executive Officer, and Alan Levy, the Chairman of our board of directors, sent a letter to Tang Capital indicating that, after reviewing and considering the Tang Capital
proposal to enter into negotiations to acquire Northstar for $ 2.25 per share, our board of directors determined that continuing to proceed with our cortical stimulation therapy system for the treatment of depression and pursuing other strategic business combinations
represented better opportunities to maximize value for our shareholders compared to the Tang Capital
proposal.
It is often the case that the envisaged research was not aimed at the target set by the government, but simply
represents the dressing - up of a
proposal in a way which would attract the
grant.