HDVY.OB

Before we say a word about this company, it's important that we state that we are the owner of approximately 550,000 shares of Health Discovery Corporation. This is not a solicitation of any offer to buy or sell. Empire Relations Group Inc., its affiliates, directors, officers, employees and employee benefit programs have a long position in the securities of this Company. We reserve the right and have the right to sell this position anytime in the future.

Health Discovery Corporation is focused on the discovery of biomarkers and the applications of those biomarkers in the pharmaceutical industry, diagnostics industries, medical imaging and personalized medicine.

Biomarkers are characteristics present in the human body that are measured to indicate the presence of a disease. Prostate specific antigen is a biomarker widely used for prostate cancer. Biomarkers as simple as high blood sugar levels could indicate the onset of diabetes.

Biomarkers could be used to:

1. Understand disease pathways
2. Measure drug efficacy on the biomarker as a primary of secondary endpoint for a clinical trial.
3. Conduct clinical trials more efficiently
4. Expedite the drug approval process
5 Improve safety

The completion of the sequencing of the human genome coupled with the emergence of proteomics in addition to sophisticated data analysis tools such as support vector machines has created a new opportunity for biomarker discovery.

Essentially, all diagnostic tests that measure anything in bodily fluid are based on a biomarker. The importance of clinically relevant biomarkers is just beginning to be known in the pharmaceutical industry. Health Discovery Corporation may be at the forefront of new discoveries.

The Company just recently announced the sale of the AIDS Biomarker Signature discovered by company scientists using one of the Company's discovery tools. The sale was completed with the University of Miami.

In addition, the Company recently announced a licensing agreement with Clarient, Inc. (CLRT:NASDAQ).

To conclude, keep any eye on this one. Like many small cap stocks, this company does have some money issues.