I strongly encourage you to take the time to vote. It is imperative that we obtain a quorum Proposal 3. The hurdle for this proposal is even higher than normal as the item is considered "non-routine" which does not receive the benefit of discretionary or proportionate votes. Voter returns for companies with a large retail base is historically low, which makes it even more important for you to vote your shares.

The move to NV is critical to the company at this point and time. Elite is doing everything in its power to conserve cash in order to create shareholder value. Being a corporation registered in Delaware requires the company pay exorbitant fees to the State of Delaware. Therefore, the most important issue for the company at the moment is to get the votes in to allow the company to incorporate in Nevada. The purpose of this proposal is simply a cost savings. There has been a recent trend for smaller companies, like Elite, to incorporate in Nevada because of the lower costs. The franchise tax in Delaware last year was approximately $70,000 and we are expecting this to increase to $180,000 for 2011. In comparison, Nevada’s franchise tax would be approximately $475. We do not expect for Elite to operate any differently in Nevada, but clearly there is a substantial cost savings for Elite from this move.

Elite cannot afford to pay to pay this amount of tax to the state of Delaware. We need to keep this money in-house so it can be used to create shareholder value.

Please be sure to vote your proxy - even if it is only for proposal 3.

If you know anyone else who owns ELTP, please encourage them to vote their proxy as well.