CSMG Technologies Newsletter to Shareholders; Discusses Recent Developments and Marketing Strategy for Subsidiary Live Tissue Connect's Surgical VAD System.

CORPUS CHRISTI, Texas -- CSMG Technologies, Inc. (OTCBB: CTGI) President and CEO, Donald S. Robbins issued the following letter to shareholders.

Dear Fellow Shareholders:

Since our last update in May 2008, management of both CSMG and our subsidiary Live Tissue Connect, Inc. (LTC) are very pleased with our progress towards realizing major milestones. While we have tried to keep you updated through press releases, I am pleased to take this opportunity to present a short update of these key, current developments.

Live Tissue Connect:

LTC received FDA 510(k) clearance to market its LTC VAD System, as announced July 31, 2008. The LTC VAD System, used in human surgery, consists of a LTC VAD.400 bipolar electrosurgical generator and two disposable sealing instruments. FDA clearance allows LTC to market these products in the United States.

Currently we are working through building instrument inventories; interviewing and securing dealers for sales and service of the VAD system; completing marketing materials; and, setting up surgeon training. There is a lot of infrastructure to complete now that we have FDA clearance, but we are making steady progress as we move toward marketing the VAD.400 System.

We want to make certain the support infrastructure is solidly in place when we launch our products. We are moving forward at a rapid pace toward this objective, though most likely it will be closer to the end of January 2009 before we are ready to launch and demonstrate the product with adequate back-up training, inventories and generators.

We discussed in our May newsletter a number of achievements, such as LTC adding a number of high quality key people to the its full time staff, including a full time software engineer, worldwide sales manager, regulatory specialist and two instrument engineers from VIR Engineering, a special contracts and regulatory consultant. LTC leased office space in Goleta, CA (Santa Barbara); formed a high quality medical advisory team;, received European Union CE Mark on the VAD 400 electrosurgery generator; and, began small batch production of both the duct and vessel sealing hand held sealing instruments and the VAD 400 generator.

LTC also purchased the majority of laboratory testing and assembly equipment, tools and fixtures, from VIR, the firm that designed LTC's disposable bi-polar instruments for the VAD 400 System. In addition to receiving the CE Mark on the VAD 400 electrosurgery generator, LTC's Quality Management System meets the standard of ISO 13485:2003. This is the international standard recognized for medical device regulations around the world. Having a Quality Management System that is in compliance with ISO 13485 is a requirement before one can be audited to and apply for a CE mark for our Bipolar Forceps System. LTC has been awarded this ISO certification designation in recognition of their commitment to quality designs, products, processes, and service for our customers.

LTC successfully presented at the Central European Congress of Surgery in Prague, Czech and the 17th annual Congress of the International Society for Gynecologic Endoscopy, the World Congress of Gynecologic Endoscopy and SEGI Annual meeting in Bari, Italy. The Prague Congress was LTC's first public opportunity to have white papers presented and compare our technology to other industry leaders. The positive responses on the technology at the Congress from surgeons and medical device distributors were impressive. LTC will continue to continue to present at key medical conferences around the world as this is the most effective way to attract quality distributors and surgeons interested in using the technology. As we progress towards achieving CE Mark in Europe, the LTC team is developing LTC's marketing and sales channels as well.

Additionally, we successfully tested our prototype for end-to-end anastomosis, and are working toward beginning the regulatory process toward the end of 2008.

Environmental and CO2 Separation:

We are also pleased to note that CSMG Technologies retained Sergiy V. Sukhostavets, a top Ukraine Oil and Gas design engineer, to head equipment design and development of state-of-the-art processes for energy projects. He is highly qualified with a wide range of experience in all areas of oil and gas processing equipment. He will lead CSMG's team on our oil and gas, nitrogen separation, C02 separation and other energy related projects in development, equipment design, manufacturing and installation and will be working with us on our newly acquired CCTI process for CO2 capture.

We are very excited about these recent developments, but are even more excited about the future of CSMG and Live Tissue Connect. We believe these very significant achievements will greatly benefit the Company and all our shareholders.

Sincerely,

Donald S. Robbins

About Live Tissue Connect

LTC's surgical tissue bonding / welding device is a patented platform technology that bonds and reconnects human soft tissue through fusion, in contrast with conventional wound closing devices such as sutures, staples, sealant, or glues. LTC currently holds a total of approximately 31 patents and pending patents in the U.S., Australia, Canada, European Union, Ukraine and other countries.

For further information on CSMG Technologies and its various subsidiaries, please visit our website at www.csmgtechinternational.com.

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