LecTec ™s good fortune should be shared by all who have invested money, time and sweat in this enterprise. Your Board has spent weeks agonizing over consideration of the appropriate amounts for a cash dividend for shareholders and cash remuneration for the Company ™s Directors and management. Our decision may not please everyone, but we remain confident our decision puts shareholder value first.

For the Directors and management of LecTec other than me, who have guided your company from rags to riches, the Board has determined to allocate a total of $245,000 in bonuses. I will not participate in these bonus payments, however, the Board has decided to authorize a one time payment of $200,000 to me in recognition of the over 6 years of service I have rendered to LecTec without any compensation.

For you, the patient shareholders, the Board has authorized a cash dividend of $1.00 per share payable on February 12, 2010 to shareholders of record on January 29, 2010. Next year, assuming our threefold plan for 2010 starts to materialize favorably, we plan to consider the declaration of an additional cash dividend.

Finally, I apologize for the long lapses in communications and shareholder meetings. There was nothing that could be disclosed about ongoing litigation and there was little else to plan, say or do considering the impact of our daunting cash constraints. Shareholder meetings are costly events, and so we decided it was in best interest of shareholders to forego a meeting in 2009. We plan to hold a shareholders meeting in September 2010, the date and place to be announced on or before June 30, 2010. These dates allow us to get past our May 2010 Markman hearing in the patent litigation before fixing the date and location of a shareholders meeting. In the meantime, we will communicate with our shareholders as noteworthy events occur.

I am deeply grateful to those shareholders who stood patient and supportive during the rough patches LecTec endured over the years. We now have the resources to make things happen and I am fully committed to increasing value for all LecTec shareholders. Best wishes to you and your family for the holiday season and new year. We all have much to be thankful for.

Sincerely,

Judd Berlin, CEO

Source: LecTec Corporation