CNS, Inc. is engaged in the developing and marketing of consumer health care products, including Breathe Right branded products focused on better breathing and FiberChoice branded products focused on digestive health. The Company's principal product, the Breathe Right nasal strip, improves breathing by dilating the nasal passages. Nasal strips provide temporary relief from nasal congestion and stuffiness resulting from a variety of health conditions, and also reduce or eliminate snoring. Breathe Right nasal strips provide consumers a drug free better breathing solution. The original FiberChoice product is an orange flavored chewable fiber tablet that offers consumers a way to supplement their daily intake of dietary fiber. In March 2005, CNS extended the FiberChoice line to include sugar-free chewable fiber tablets in assorted fruit flavors and a low-sugar, hard candy fiber drop. During the fiscal year ended March 31, 2006 (fiscal 2006), the FiberChoice brand was further extended with the launch of FiberChoice plus Calcium and FiberChoice Weight Management chewable tablets. Breathe Right Nasal Strips The Breathe Right nasal strip is a non-prescription, single-use disposable device that improves breathing by dilating the nasal passages. The Company has 510(k) clearance from the United States Food and Drug Administration (FDA) to market the Breathe Right nasal strip for improvement of nasal breathing, temporary relief of nasal congestion, elimination or reduction of snoring and temporary relief of breathing difficulties due to a deviated nasal septum. The Breathe Right nasal strip includes two embedded flexible spring-like pieces, which gently lift nasal passages open while a special adhesive holds the strip comfortably in place. The product improves nasal breathing during use and is drug-free. The Breathe Right nasal strip is offered in two sizes (small/medium and large), and three varieties (tan, clear and mentholated). Mentholated nasal strips contain a soothing mentholated aroma for additional relief from nasal congestion. Clear nasal strips have been positioned as an alternative for consumers who wish to use the product frequently, but suffer from dry or sensitive skin. Other Breathe Right Products Breathe Right Snore Relief throat spray and Breathe Right Snore Relief Throat Rinse address the snoring condition in a complimentary way relative to nasal strips. Both Breathe Right Snore Relief throat spray and Breathe Right Snore Relief Throat Rinse are drug-free products. FiberChoice Daily Fiber Supplement FiberChoice is a line of daily fiber supplements that offer consumers a way to supplement their daily intake of dietary fiber. Two FiberChoice chewable tablets contain four grams of fiber and provide more than twice the amount of fiber per dose compared to other convenient fiber supplements. The active ingredient in FiberChoice tablets is inulin, a natural fiber source, which is a prebiotic that helps promote the growth of healthy bacteria in the intestinal tract. FiberChoice products can be taken without water and have been clinically proven to be as effective as powder alternatives. In addition to providing consumers with a source of dietary fiber, the FiberChoice product line has been expanded with a fiber supplement fortified with calcium or weight management ingredients. CNS, Inc. competes with Procter and Gamble, GlaxoSmithKline, Norvartis and Wyeth.