SOURCE: Hop-on; USAcig

September 27, 2010 12:26 ET

Hop-on and USAcig's Update on FDA's Appeals Court for Electronic Cigarettes

TEMECULA, CA--(Marketwire - September 27, 2010) - Hop-on, Inc. (PINKSHEETS: HPNN) and USAcig, Inc. announced today that on September 23, 2010, the Appeals Court heard the oral arguments on the case with our electric cigarette competitors from which the appeals court decided to stay the injunction with the FDA pending further resolution.

Peter Michaels, CEO USAcig, Inc., "Our position in our company is that the Electronic Cigarette Industry should be regulated similar to the Tobacco Industry. We understand that Nicotine is a by-product of Tobacco and our company does not and will not taut that we are a smoking cessation. We are clearly a smoking alternative."

Michaels also stated, "The underlining case heard at the Supreme Court Thursday was to decipher whether the District Court properly rejected FDA's argument that it has jurisdiction and authority to regulate e-cigarettes as a drug device combination product. Despite the Supreme Court's rejection of its jurisdiction over customarily marketed tobacco products in Brown & Williamson and Congress's subsequent enactment of an entire statutory framework for the regulation of tobacco products, FDA asserted that it had jurisdiction to regulate e-cigarettes (claiming it as a tobacco product) as a drug and device combination under the FDCA. The base for the opposing argument versus FDA was: FDA's regulation of e-cigarettes as a drug device combination under the FDCA would be contrary to the interpretation of the FDCA that the Supreme Court adopted in Brown & Williamson. The Supreme Court's decision in Brown & Williamson invalidated FDA's 1996 rule, the Supreme Court adopted FDA's longstanding prior position that it could regulate tobacco products under the FDCA only 'when sold with therapeutic claims, but not when sold for recreational purposes.' In this case, FDA could not dispute the district court's ruling that e-cigarettes were not being sold with therapeutic claims. The prevalent history from Brown & Williamson makes FDA's assertion of drug device combination and jurisdiction over e-cigarettes was a lost cause based on merits. Thus the FDA appealed the court ruling and lift of injunction on electronic cigarettes products to further address the issue." 

About Hop-on, Inc.

Hop-on, Inc. offers multi-media services and has secured licensing agreements from essential patent holders for GSM, CDMA and WIFI technologies. Since its inception, known for developing the world's first disposable cell phone, Hop-on currently remains one of the few US-based manufacturers of cellular technology. The Company also distributes The Electric Cigarette™ and The Electric Cigar™.

About USAcig, Inc.

USAcig, Inc. is the only US-based manufacturer making the actual nicotine cartridges/products in the US. The Electric Cigarette™ is an alternative to traditional tobacco products. It is a battery-powered device providing inhaled doses of nicotine by delivering vaporized water, propylene glycol, nicotine solution and other non-carcinogens. In addition to nicotine delivery, this vapor also provides a flavor and physical sensation similar to that of inhaled tobacco smoke, while no tobacco, smoke, or combustion is actually involved in its operation. USAcig, Inc. is a US-based manufacturer of "The Electric Cigarette™" and "The Electric Cigar™." USAcig, Inc. manufactures its cartridges in the United States and the electronics are manufactured in China. For more information, visit www.USAcig.com.

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