CSMG Technologies Issues Letter to Shareholders: Updates Live Tissue Connect.

CORPUS CHRISTI, Texas -- CSMG Technologies, Inc., (OTCBB: CTUM) today issued a letter to shareholders updating its technologies, including its live tissue connect subsidiary.

Dear Fellow Shareholders:

We are pleased to report there have been several recent positive events in the course of business of our company, and want to share these with you.

Live Tissue Connect

Current status:

We recently finished the duct and vessel sealing prototype which allows the surgeon to grasp the tissue, allowing the software program to complete the leak proof seal. This is the first specific procedure device that has been taken from our universal device that is capable of more than 80 different procedures. In early November we began our second specific procedure prototype device for end-to-end intestine and end-to-side intestine anastomosis "reconnection" which will be completed at the end of March, 2007.

We have currently identified 13 specific procedure devices, giving us 13 different marketing, manufacturing and licensing opportunities. The duct and vessel sealer will be the first device for FDA (510k) and European CE Mark filing followed by additional devices, as prototypes are completed. To accomplish the FDA and CE Mark filings, CSMG Technologies is proud to inform you that Mr. Frank D'Amelio has joined our Live Tissue Connect, Inc. ("LTC") subsidiary as a consultant. Mr. D'Amelio brings a highly successful career spanning 24 years with a major medical device company, and is internationally recognized as a prominent figure in the medical device industry. He has successfully launched more than 200 new medical device products including "industry first" technologies, has directed production at 5 manufacturing facilities, and is the sole or co-author of over 40 medical technology patents or patent pending applications worldwide.

In addition, Mr. D'Amelio has been instrumental leading numerous M&A deals valued between $3 and$500 million, and brings deep experience working with the FDA concerning 510k and PMA filings and approvals. We believe Mr. D'Amelio's association and participation with Live Tissue Connect enhances the Company's image and capabilities within the medical equipment community, and will likely accelerate our timetable for needed regulatory approvals and subsequent commercial product launch of our patented tissue welding equipment in the U.S. and worldwide.

We have had a number of questions from shareholders about the status of the forthcoming IPO for Live Tissue Connect, and we want to update you in this regard. Our plan is to bring the offering to market in late second quarter 2007. This allows us time to move forward with regulatory issues, open Eastern European markets and investigate licensing opportunities coming with various domestic and international medical device companies.

Finally, you will recall we announced in July we had retained the services of Empire Financial Group, a well regarded underwriting firm, to place the Live Tissue Connect IPO on our behalf for a minimum of $5 million and an immediate best efforts bridge loan of $3 million. The relationship with Empire Financial is proving to be a good one, and to date the Company has received approximately $2.7 million in gross bridge loan proceeds.

Landfill Gas Purification

Current Status

As you may know, we own patented exclusive worldwide rights to the Methane Extraction/CO2 Separation technology- with most of the equipment being manufactured in Ukraine. The technology separates carbon dioxide and other impurities from gas commonly found in landfills and converts the end product to a methane gas that is up to 98%purity, depending on raw gas quality. This gas then can be burned in internal combustion engines, used as a direct power source for nearby industry, or sold to natural gas utilities.

We finished our first facility in Chastang County, Alabama, in March of 2003. The landfill is controlled and operated by Waste Management, Inc. ("WMI"), but the landfill gas was controlled at that time by another company: Resource Technology Corporation ("RTC"). To make a long story short, WMI and RTC became involved in a lengthy legal dispute, in which CSMG was not a direct party, but was unable to operate the CO2 Separation System until the matter was resolved.

In December of 2004, we entered into a contract with WMI to operate the system on the Chastang landfill site. The agreement was approved in February 2005 by court-appointed trustee for RTC, and the U.S. Bankruptcy Court; however, the settlement agreement was appealed by RTC creditors, and on January 11, 2006, the appeals court refused to hear the appeal. CSMG signed an agreement with the DuPont Corporation in February of 2006, to provide up to 500,000MM Btu per year of gas to one of their plants outside of Mobile, Alabama. DuPont has recently indicated that (a.) they are still interested in purchasing the gas, and (b.) the gas produced does not need to meet national gas pipeline quality specifications to fulfill their contract (based on current raw gas analysis, we believe the gas produced from Chastang will be well above the required contractual specification).

Waste Management and the Company are currently discussing the future capability of the Chastang site to produce sufficient waste gas volume, of the appropriate composition, to enable the Company's CO2 separator to produce saleable gas in marketable quantities to our customer. We firmly believe an amicable and effective solution is a 'win-win' for both parties, and are working to achieve that end. If, however, the actions being taken at the site by WMI are deemed insufficient to support commercial sales of treated waste gas, CSMG will have no alternative but to seek another viable landfill site.

As always, we appreciate your loyalty and your support. And while delays such as the one we have been experiencing with the methane gas purification technology are frustrating, they are just that - delays. We anticipate they will be overcome and will not affect the long term intrinsic value and earning power behind the technology. We will keep you apprised as to future developments, both with our two key technologies, and with new technologies we may wish to pursue.

Sincerely,

Donald S. Robbins

President and CEO