MDEChem is listed on the Pink Sheets as MDKM.  When trading a Pink Sheet stock  always place a limit order (be specific as to the exact price you will buy and sell a Pink Sheet stock).  The Pink Sheets website will let you know the BID and ASK for all Pink Sheet listings.

MEMO TO SHAREHOLDERS

Management has received many inquiries in the last few months about the volatility in the price of MDKM.PK shares. MDKM.PK is listed in the Pink Sheets.

There are several reasons for this volatility:

• The SEC does not regulate this market and thus brokerage houses cannot recommend purchase of shares.
• The new world of day traders plays a role in the volatility.
• The SHORT SELLERS play a huge role in volatility. It is generally known that at any given time 30% of all traded stocks in all markets are shorted.
• Brokerage firms cannot support an orderly price for Pink Sheet companies. Anyone can sell shares and if the seller does not put an asking price, they can be sold for much less than intrinsic market value.

 

Management takes steps to keep shareholders informed through the Company Website, Bloomberg, Pink Sheets and Business Wire. These public announcements are meant to keep shareholders as informed as possible within the limitations of the disclosure agreements between MDEChem and EnviroFuels LLC.

As of this date, MDECHEM has a 25% ownership interest and a 10% interest in net profits of EnviroFuels, LLC.

EnviroFuels has raised significant new funding to develop the technology purchased from MDEChem, Inc. This technology provides for improvements in fuel economy and reduction of emissions in internal combustion engines. EnviroFuels has made significant inroads into the railroad, mining, marine, power generation and construction industries, and is acquiring new multinational customers on a continuing basis.

EnviroFuels is also expanding management and engineering personnel to take care of what will become an unprecedented demand for the company’s Diesel Fuel Catalyzer. Currently EnviroFuels DFC is servicing 2,500,000 horsepower every day.

Shareholders should be aware that the world wide usage of hydrocarbon fuels for combustion is over 2 trillion dollars annually, EnviroFuels DFC product underwent an extensive EPA/ETV testing under a protocol designed by The Greenhouse Gas Technology Institute. This testing validated the fuel savings and environmental benefits claimed by EnviroFuels, LLC.

These results are posted at http://www.epa.gov/etv site and on www.envirofuelsllp.com.

MDEChem is not aware of any EPA tested product that approaches the fuel economy and emissions reductions achieved by EnviroFuels DFC. Further, the EU and the State of California have announced new initiatives to achieve emission reduction targets within the next several years. EnviroFuels has the only product that can almost immediately achieve the regulatory objectives. At the same time, ongoing tests with major multinational users of diesel fuels are reporting significant reductions in maintenance costs. These results augur well for the continuing success of EnviroFuels.

MDEChem incorporated MaxHeal, Inc. in August 2006. MaxHeal, Inc. is in the process of manufacturing "MaxHeal™ Skin Restoration Gel". for the U.S. market. This Gel is a result of technology developed by MDEChem and is the first in a line of products to be introduced to the U.S. market that have been developed by MED Quimica S.A. which is Chartered in Costa Rica and is owned 50% by MDEChem, Inc.

We suggest that shareholders take a long-term view of the intrinsic value of the company’s assets and avoid too much attention to the day traders and short sellers. Our assets and developed drug products will have a profound effect on energy usage and on improvement in human and animal health.

MDEChem, Inc. Pink Sheets Rule 15C2-11

Dated: September 30, 2007

1. Issuer: MDEChem, Inc.

2. Offices: Corporate: 1717 St James Place, Houston, Texas 77056

   Business: 1000 C Street, Floresville, Texas 78114

   i. Phone: 830.393.5293

   Fax:       830.393.5238

   ii. URL: MDEChem.Com email: corporateoffice@mdechem.com

   iii. Investor Relations:

3. State and Date of Incorporation: Texas Charter # 01287912 04/08/1996

4. Class of security: Common Stock CUSIP: 582826301 Symbol: MDKM

5. Value: No Par Value

 

i. Date of report: September 30, 2007

1. Authorized shares: 100,000,000

2. Issued Shares: 22,655,243

3. Shares in float: 12,905,616

4. Shareholders: Estimated 352

  List of other securities: No

Vii Transfer Agent: Olde Monmouth Stock Transfer, 200 Memorial Parkway, Atlantic Highlands, NJ 07716 Phone: 732.872.2727

Viii  A Business Development

MDEChem, Inc. develops and commercializes products based on its proprietary technology. The company's development work had its inception in the efforts to form a new surface on internal parts of a combustion engine; utilizing a "Catalyzer" developed through proprietary technology.

U.S. Patent #5,540,788"Method of Preparing Iron-Phosphate Conversion Surfaces", was issued in July 1996, to co-inventors Frank Defalco and Charles R. McCoy, who incorporated MDEChem, Inc., in the State of Texas that same year. Patent coverage in all industrial nations was applied for under the (PTO) Patent Treaty Organization. This patent and the PTO coverage were subsequently assigned to MDEChem, Inc.

In summary, the applications of MDEChem's technology produce large increases in fuel and mechanical efficiency, allowing for more complete and cleaner burning of fuel, and provide a substantial reduction in emissions.

On December 10, 2002 MDEChem, Inc completed an Asset Purchase Agreement with Envirofuels L.P. In this sale Envirofuels purchased the intellectual property rights of MDEChem, Inc (except for the excluded fields detailed below). The rights to these excluded fields have been licensed back to MDEChem with an Exclusive License Agreement on a perpetual royalty free basic.

The "excluded fields of use" are: (1) medicines to be used in treatments of humans and animals; (2) treatments to be applied to agricultural uses including planting, growth, harvesting and processing of crops; (3) treatments to human and animal foods; (4) treatments applied to trees and plants; (5) treatments applied to products from trees and plants; and (6) treatments for fire retarding and/or proofing for wood, wood products and clothing.

MDEChem is focusing its energy on the development of product used in the treatment of humans. The key to our long-range success will be the funding and further establishment of M.E.D. Quimica S.A. and MaxHeal, Inc. Both companies are being developed as a result of the "Excluded Fields of Use" provision in the Envirofuels Asset Purchase Agreement.

1. Form of organization: Corporation
2. Incorporated in: 1996
3. End of Fiscal Year: December 31
4. Bankruptcy, receivership or the like: No
5. Asset sale in 2002 described above. In addition The Agreement of Limited Partnership of Envirofuels, L.P. dated December 10, 2002 provides that Envirofuels L.P. during the initial seven (7) year term of the Limited Partnership will pay MDEChem a technology fee in the amount of ten percent (10%) of the monthly net income of the Envirofuels. MDEChem currently owned 16% of EnviroFuels LP.
6. Default on any financial arrangement. No
7. Paul W. Sack was elected as President and CEO
8. Increase in equity Yes
9. In January 2000 the common stock was split 3 for 1
10. Delisted from OTC Bulletin Board

Business of Issuer

1. SIC 2834

2,3,4,5,6,7.

MDEChem is focusing its energy on the development of product used in the treatment of humans. The key to our long-range success will be the funding and further establishment of M.E.D. Quimica S.A. and MaxHeal, Inc. Both companies are being developed as a result of the "Excluded Fields of Use" provision in the Envirofuels Asset Purchase Agreement.

M.E.D. Quimica S.A. (MEDQ from now on) was constituted on June 23rd 1999 under the laws of Costa Rica. Activities of the company have been based in San Jose, Costa Rica presently at: Ave. 3ra Calle 24 Edificio Rohne 2° piso San Jose, Costa Rica.

Information as to equity ownership can be found in the deed and articles of incorporation a copy of which is available at MDEChem headquarters.

M.E.D.Quimica, S.A. has perfected a family of products that will be registered and introduced into the market in the near future. Most of the products have matching clinical studies and scientific evidence to back them up. Registration renewals and registration of new products can be accomplished from facilities in Costa Rica. Foreign markets could follow shortly after registration of products is secured. It is estimated that the asthma product within 6 months of concluding a pre-clinical and clinical study could be safely and efficaciously used in controlling asthma in children and adults worldwide. Resources for these actions are being pursued presently, not solely for sales purposes but also for seeking patent protection of the applications.

With the founding of MEDQ came the registration of the MaxHeal product in Costa Rica. The sanitary registration was obtained on the 12^th of October 1999.

MEDQ authenticated an innovative product for skin treatment in 1999. Since then MEDQ has established the complete safety of the product. The excellent record of safety of use on humans and the extremely favorable LD50 of the basic solution >20% better toxicity than substances considered by the EPA as safe.

During late 2000 and early 2001, Dr. Feoli developed a family of hydrogels that according to a bio-availability study done in animals in early 2001 would function in a friendly way and in a much more efficaciously way than a solution. The gels could be employed additionally as controlled delivery system. A sanitary registration was filed in Costa Rica for the skin treatment gel developed by Dr. Feoli and it was approved on April 24^th 2001. The registration of MaxHeal gel as an OTC product with a designation as GRAS (Generally Regarded As Safe). This will allow MaxHeal gel to be marketed without prescription in the U.S. after May of 2005.

The Board of Directors of MDEChem met with Dr. Feoli in San Jose, Costa Rica and after meeting for two days signed a Letter of Understanding with M.E.D. Quimica S.A. on July 26, 2004. The Letter of Understanding details each company’s mission statement, plus all royalty, licensing and marketing arrangements for the manufacture and distribution of product worldwide

3. Investment Policies

The issuer does not own or have investments in real estate.

Investments to date have been in MED Quimica and MaxHeal for research and development.

9. Nature of Products

The mission of MED Quimica and MaxHeal is to develop innovative drug formulations based on a patented energetically charged solution, which is owned by MDEChem.

1. Products: MaxHeal™ Skin Restoration Gel

2. Distribution: United States and Central America.

   Future distribution: European, Australian, Africa and the remainder of North America

3. Competition: The technology of MDEChem's energetically charged basic solution and the aspects of the body electric gives our products a unique competitive position.

4. Sources and availability of raw materials: Raw materials and suppliers are confidential corporate information. Supply is more than adequate.

5. Dependence of major customers: No. Distribution will consist of direct sales via Internet, infomercials, sales representative and direct mailings.

6. Patents etc… have been detailed in narrative above.

7. FDA approval may be necessary if company intends to expand its product claims.

9. Issuer's facilities.

   The issuer currently does not own or rent manufacturing facilities. Production is and will be for the foreseeable future contracted with established packaging companies.

   1. Corporate Officers

Paul W. Sack President and CEO 1305 F Street, Floresville, TX 78114

Employment: The Pembroke Company 1983-1997 Owner

Leafscreener System USA, Inc Principal 1997-2005

MDEChem, Inc. Principal 2004 - 2007

2. Directors-

                Fred Fischer 55 Director Re-Elected 05/18/2007 One year term

Occupation Integrated Resources, consultant

Shares of MDEChem: 490,000

Shannon McCoy 37 Director Re-Elected 05/18/2007 One year term

                Occupation Sales Manager, Otsuka America Pharmaceutical Inc.

                Shares of MDEChem 300,000

Paul W. Sack 66 Director Re-elected 05/18/2007

One year term

                Shares of MDEChem 313,000

3. General Partners: No General Partners

4. Bank: Northern Trust Bank

5. Promoters: No Promoters

6. Control Persons No Control Persons

   Legal Council: Holland & Knight,

   Olsson, Frank and Weeda, P.C.

7. Accountant: Stacie Albert, outside accountant

8. Public Relations: No Public Relations Consultants

9. Advisors: No other advisors

2. Legal/Disciplinary History

1. Convictions: None

2. Judgments: None

3. Securities violation: None

4. Suspensions etc.: None
1. Beneficial Owners:

   Frank Defalco 2500 Old Farm Road , Houston TX 77063 1,286,000 7% of Common Stock

   McCoy Estate 3741 Summer Rose Dr. Atlanta, GA 30341

   2,132,000 10% of Common Stock

   Louis Macey 1717 St. James Place, Houston, TX 77056 1,023,081 6% of Common Stock

   MaxHeal, Inc. 1717 St James Place, Houston, TX 77056

   2,500,000 11% of Common Stock

2. Relationships between officer, directors and shareholders: None

xii Financial Information .

xv Tradability Opinon Letter issued by Counsel, Martin Nathan, Bulldog Financial

661 Bering Drive, Houston Texas 77057

The current directors of MDEChem, Inc. are not insured. The shareholders in a meeting held in Houston, TX on May 14^th, 2004, representing 68% of the outstanding stock, voted unanimously to pass a motion to indemnify the current directors with the assets of the company.