SOURCE: MedSpas of America, Inc.

January 07, 2008 16:05 ET

MedSpas of America Completes Skin Care Line Acquisition

ATLANTA, GA--(Marketwire - January 7, 2008) - MedSpas of America, Inc. (PINKSHEETS: MEDP), following the company's announcement of October 8, 2007, has completed the acquisition of the luxury natural skin care lines from 2M Innovations LTD.

The company acquired 2 professional skin care lines from 2M Innovations including a line of 16 natural skin care products. Our all-natural products contain a uniquely exotic and effective combination of hibiscus flower and kukui nut oil. The Company will immediately re-brand this product line to its Natural Renu brand to become the foundation of the Company's retail natural skin care line. The second line of products, called doceuticals™, is an all-natural line of skin care products that is marketed towards physicians, aestheticians and medspas.

"In the last quarter, the company decided to focus its resources in the upcoming year to penetrate the $5.4 billion cosmeceutical industry. The acquisition of the 2M Innovations product lines, including doceuticals™, provides us with a jump-start into this market," states Paul Smith, CEO of the company. "It is our goal to complete the re-branding of South Seas to our Natural Renu line and launch our consumer marketing program by the end of the first quarter of 2008."

With a successful product launch following the brand conversion, management anticipates this acquisition will account for an increase in revenues for the Company in excess of 100% with a corresponding contribution to EBITDA of approximately 18% of anticipated revenues.

About MedSpas of America

MedSpas of America is a developing consumer brand corporation that specializes in the professional and high-end skin care markets, generally referred to as the "anti-aging" market. This fast growing market sector is being predominantly driven by the aging "baby boomer" demographic sector. Most business professionals agree that the demand for skincare products is going to increase as baby boomers age. In fact, Jim Cramer, the financial guru from MSNBC stated, "Companies with products to help the eyesight, skin care and plastic surgery will be big winners."

The Company has chosen two entry points into this large and fast growing market, those being: (a) a national and international roll-out of the company's skin care products line called Natural Renu in the $5.4 billion cosmeceutical industry; and (b) the development of the company's medical spa brand called Virtuoso Medspa in the $9.4 billion cosmetic procedures and medical spa market niche, what industry experts are calling "the fastest growing segment of the medical industry." These two markets have significant synergy as they place the Company on both the services and supply side of one of America's fastest growing industries.

About Natural Renu

The company has established a new division to penetrate the $5.4 billion cosmeceutical industry under the brand name Natural Renu. The company's new initiative is a line of cosmeceutical products focusing on the anti-aging and skin healthcare markets. The company sales efforts are focused primarily through two marketing channels. The first and primary sales channel is Internet Retailing. The second target audience is to exclusive Plastic Surgeons and Dermatology practices, Day spas, Resorts and Medspas around the world.

According to, Nutrition Science News, the term "cosmeceuticals" was coined after numerous products emerged on the market that combined common cosmetic preparations with nutraceuticals whereby cosmeceutical ingredients are most often used in products for anti-aging purposes. US cosmeceuticals demand will grow 8.5 percent annually, propelled by a stream of new products offering age-defying and other appearance-enhancing benefits. Skin care products will remain dominant while professional products will grow the fastest.

SAFE HARBOR STATEMENT: Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition and risk inherent in the operations of a company.

Contact Information

  • Investor Contact Information:
    Rich Kaiser
    Investor Relations