ALR Technologies, Inc.
114 M Reynolda Village
Winston-Salem, NC 27106
Phone: (336) 722-2254
www.alrt.com

CEO of ALR Technologies Sends Letter to Shareholders

ALR Technologies Inc. (OTCBB: ALRT) is a pioneer in the emerging market for the home health management and disease management industry. While medical researchers and pharmaceutical companies have been effective in developing treatments to manage many diseases and health issues, poor medication compliance at home, mainly forgetting when and which medication to take, has rendered the treatments less effective. The growing problem of patient non-adherence to medical treatments contributes to more than $140 billion dollars annually in excess health care costs. Health care costs in the US currently account for 15% of the gross domestic product and is expected to reach 25% by 2020.

ALRT has developed a technology-based "clinically proven" system, the Constant Health Companion™ to address the problem of patient non-adherence. The Constant Health Companion will serve as a medication reminder for the patients at home, monitor the patients' compliance to prescribed medical treatments and, if necessary, facilitate timely intervention by their health care providers.

At the present time, current US health management practices fall far short as patients are left largely on their own after they are discharged from the hospital, leave the medical clinic or after the case manager leaves their homes. The Constant Health Companion will enable remote and continued oversight of the patients by their health care providers. The system will provide the necessary information for health care providers to improve treatment adherence by their patients resulting in more favorable health outcomes and containment of health care costs. ALRT is focused on becoming the leader and driver of growth for the emerging health management compliance market.

With the ALRT health management products and systems, health care providers can now remind patients what to do at the appropriate times, determine patients'compliance and intervene when necessary. Improving compliance and intervening on a real time basis will result in better health outcome and reduce the overall cost of healthcare. Accordingly, use of the Constant Health Companion will realize significant return on investment. Furthermore, the Constant Health Companion system will provide valuable information for financial decision-making. Insurance providers can monitor plan members' compliance and adjust the pricing of their coverage based on adherence by the members to prescribed health management programs.

In the course of developing the Constant Health Companion over the past five years, the company has also developed other spin-off compliance reminder products such as the ALRT PC 200, and other specialized products targeting specific health care needs.

ALRT has recently completed in-market pilots and trials with patients suffering from chronic conditions such as congestive heart failure, diabetes, organ transplant, HIV/AIDS as well as with assisted living organizations and Medicaid patients. Companies that participated in the pilots reported significant return on investment and improved
health outcome results. These companies are also committing to use the ALRT system in their business operations. ALRT is starting its first full manufacturing run for product delivery in January 2007.

Why Invest in ALR Technologies, Inc.?

The next significant growth area in healthcare and the one area to help contain/reduce costs is health management compliance and monitoring.
Compliance and monitoring of health management treatments, medications and other activities have significant untapped market size potential, as awareness and the availability of affordable and user friendly effective systems are established.
In a market size of this magnitude, just a small percentage of market penetration can translate to significant market potential for ALRT products.
One medium sized national assisted living organization alone could utilize nearly 10,000 ALRT systems which would generate nearly $5 million in 12 month revenue for ALRT with 75% gross profit margin.
ALRT is positioned to dominate the nebulizer market, with the only Nebulizer Monitoring System to be available, supported by pending patent protection.
The ALRT system cost to the market is significantly lower than other competitors, with the company still generating very healthy margins.
The company’s goals are to make the ALRT compliance monitoring systems a ‘standard operating procedure’ (SOP) by health insurance payers and their contracted disease and case management companies.

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