Spherix Letter to Shareholders Concerning Short Interest

Apr 24, 2001, 01:00 ET from Spherix(Biospherics Incorporated)

    BELTSVILLE, Md., April 24 /PRNewswire Interactive News Release/ -- Spherix
 (Biospherics Incorporated) (Nasdaq:   BINC), today announced that its CEO, Dr.
 Gilbert Levin, is distributing a letter to its shareholders concerning the
 current market short interest in the company.  The following is a copy of the
 letter:
 
     "Winning GRAS status for tagatose, permitting its sale in foods and
 beverages in the U.S., was a major development for your Company.  However, the
 price of our stock did not nearly reflect the value added by the achievement.
 Since we have always swum upstream with respect to the market, it is hard to
 believe that its general drop would have affected Biospherics to such a
 degree.  I think I have identified a more likely cause, one that you can help
 correct.
     Apparently doubting that GRAS would ever be achieved, many market players
 have sold Biospherics short.  The short position is well over 1,000,000
 shares.  Considering the small float, perhaps as little as five million shares
 readily available for trading, this is huge.  Those having sold short now seek
 to postpone the day when they must buy to cover.  They can do this by
 borrowing stock, paying a fee and interest, from brokers holding Biospherics
 stock in street name.  If you have any Biospherics stock held by brokers, I
 suggest you ask your broker to send the shares to you or register them in your
 name.  This will take the stock out of play and force the short sellers to
 cover by buying into the market.  Once this occurs, our hope is that the stock
 price will rise to the value conferred by the general market rather than
 remain imprisoned by the antics of the short sellers.  If you ask your broker
 to do this, there can be no adverse effect on your holdings, and you may be
 taking a step to assist yourself and other Biospherics stockholders in
 achieving a better value for all of our shares.
     Please ask your broker to send you your certificates or to register them
 in your name."
 
     Certain statements contained herein are "forward looking" statements as
 defined in the Private Securities Litigation Reform Act of 1995.  Because such
 statements include risks and uncertainties, actual results may differ
 materially from those expressed or implied.  Factors that could cause actual
 results to differ materially from those expressed or implied include, but are
 not limited to, those discussed in filings by the Company with the Securities
 and Exchange Commission, including the filing on Form 8-K made on March 3,
 1999.
     Under its motto, "A World of Solutions," Spherix's mission is to create
 value and increase shareholder wealth through innovations that benefit our
 clients and the human condition.  Spherix offers innovations in information
 technology, knowledge management, and biotechnology.
     The Spherix Internet address is http://www.spherixinc.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33777018
 
 

SOURCE Spherix(Biospherics Incorporated)
    BELTSVILLE, Md., April 24 /PRNewswire Interactive News Release/ -- Spherix
 (Biospherics Incorporated) (Nasdaq:   BINC), today announced that its CEO, Dr.
 Gilbert Levin, is distributing a letter to its shareholders concerning the
 current market short interest in the company.  The following is a copy of the
 letter:
 
     "Winning GRAS status for tagatose, permitting its sale in foods and
 beverages in the U.S., was a major development for your Company.  However, the
 price of our stock did not nearly reflect the value added by the achievement.
 Since we have always swum upstream with respect to the market, it is hard to
 believe that its general drop would have affected Biospherics to such a
 degree.  I think I have identified a more likely cause, one that you can help
 correct.
     Apparently doubting that GRAS would ever be achieved, many market players
 have sold Biospherics short.  The short position is well over 1,000,000
 shares.  Considering the small float, perhaps as little as five million shares
 readily available for trading, this is huge.  Those having sold short now seek
 to postpone the day when they must buy to cover.  They can do this by
 borrowing stock, paying a fee and interest, from brokers holding Biospherics
 stock in street name.  If you have any Biospherics stock held by brokers, I
 suggest you ask your broker to send the shares to you or register them in your
 name.  This will take the stock out of play and force the short sellers to
 cover by buying into the market.  Once this occurs, our hope is that the stock
 price will rise to the value conferred by the general market rather than
 remain imprisoned by the antics of the short sellers.  If you ask your broker
 to do this, there can be no adverse effect on your holdings, and you may be
 taking a step to assist yourself and other Biospherics stockholders in
 achieving a better value for all of our shares.
     Please ask your broker to send you your certificates or to register them
 in your name."
 
     Certain statements contained herein are "forward looking" statements as
 defined in the Private Securities Litigation Reform Act of 1995.  Because such
 statements include risks and uncertainties, actual results may differ
 materially from those expressed or implied.  Factors that could cause actual
 results to differ materially from those expressed or implied include, but are
 not limited to, those discussed in filings by the Company with the Securities
 and Exchange Commission, including the filing on Form 8-K made on March 3,
 1999.
     Under its motto, "A World of Solutions," Spherix's mission is to create
 value and increase shareholder wealth through innovations that benefit our
 clients and the human condition.  Spherix offers innovations in information
 technology, knowledge management, and biotechnology.
     The Spherix Internet address is http://www.spherixinc.com .
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X33777018
 
 SOURCE  Spherix(Biospherics Incorporated)