Swiss Medica, Inc.
OTC Bulletin Board : SWME

Swiss Medica, Inc.

May 19, 2006 08:00 ET

Swiss Medica Annouces First Quarter 2006 Results And Date Of Conference Call

TORONTO, ONTARIO--(CCNMatthews - May 18, 2006) - Swiss Medica, Inc. (OTCBB:SWME) is pleased to announce that third quarter revenues for the three months ended March 31, 2006, grew 8% over Q1 2005 quarterly results to US$1.22 million.

"While our year-over-year revenues grew, our revenues did decline from Q4 2005." said Chief Executive Officer, Raghu Kilambi. "As we are still in the stage of building brand awareness and gaining distribution, our quarterly revenues will significantly fluctuate. This is due to some quarters yielding significantly larger opening stocking orders for new channels. The good news is that through stringent inventory and cash management, we have decreased our cash outflows from operations in Q1 2006 significantly to (US$399,000) from (US$796,000) in Q4 2005 and (US$2.75 million) in Q1 2005."

Swiss Medica announced many significant achievements in the first 4 months of 2006 including:

- According to sales rankings from ACNielsen, the 30ml spray bottle of O24 Pain Neutralizer was ranked the 3rd best selling product in the topical pain relief category in Canadian drug stores in 2005, based on dollar sales at the retail level. O24 Pain Neutralizer was nationally launched in Canadian drug stores in September 2004.

- O24 Fibromyalgia was able to capitalize on its receipt of the first and only Seal of Approval from the National Fibromyalgia Association, based in Orange, California, to gain distribution in major pharmacies in Canada and the United States including Rite-Aid, CVS/pharmacy and Shoppers Drug Mart. O24 Fibromyalgia is the first clinically tested, patented product available in national pharmacies that specifically targets the pain associated with Fibromyalgia. There are over 11 million North Americans who suffer from Fibromyalgia.

- The results of a randomized double blind clinical study on O24 Fibromyalgia for patients suffering from Fibromyalgia was published in the Practical Pain Management Journal, (January/February 2006 issue). This publication reaches over 37,000 medical professionals in the United States. 88 per cent of the patients who used O24 Fibromyalgia in the clinical study reported mild to markedly better improvement, versus only 7 per cent who used the placebo. A copy of the published study can be viewed at http://www.024zone.com/Clinicals.html.

- Swiss Medica announced a U.S. healthcare industry distribution deal with North American Physicians, Inc., ("NAPI") of Boca Raton, Florida. NAPI is distributing all three of Swiss Medica's products into the healthcare community including licensed dispensing physician offices, physician kiosks, pain management clinics, hospitals, therapy centers, hospital pharmacies, and chiropractor and podiatry clinics. The sampling and sale of products will be by healthcare professionals to patients in medical settings, experiencing either acute or chronic pain afflictions as well as mood instability.

OTHER MARKETING ACTIVITIES

- Swiss Medica attended several major, medical and biotech conferences in the United States and Canada as it continued to gain exposure and acceptance from the medical community for its unique patented, clinically tested OTC products. Swiss Medica continued to gain acceptance for its products as thousands of physicians in North America requested samples of Swiss Medica products for distribution to their patients.

- Swiss Medica continued its innovative consumer brand building program of aggressive consumer sampling, public relations and targeted media to build brand recognition of all three of its products in the United States and Canada.



Summary of Financial Results: (US$000)

Q1/2006 Q4/2005 Q1/2005
------- ------- -------
Revenues 1,222 2,145 1,127
EBITDA (1,063) (708) (620)
Net Loss (1,462) (1,254) (1,027)
Cash Used in Operations (399) (796) (2,784)


"We continue to be very optimistic about 2006 and beyond and expect significant growth as all three of our products gain momentum in the marketplace", continued Raghu Kilambi.

Swiss Medica defines EBITDA as earnings before interest and financing fees, taxes, depreciation, amortization, and other non-cash charges. Full second quarter results, for the period ending March 31, 2006, are included in the Company's 10-Q, which has been filed with the U.S. Securities and Exchange Commission.

Swiss Medica's management will host a conference call on Monday June 5th, 2006 at 4:00 pm EST to discuss the Company's first quarter highlights and go forward strategy. The details for dial-in and webcast will be forthcoming in a separate press release.

About Swiss Medica, Inc.

Swiss Medica is a specialty pharmaceutical company focused on commercializing over-the-counter clinically-tested, patented all-natural products that relieve chronic ailments. Swiss Medica builds its brands through innovative and focused distribution and marketing strategies. Swiss Medica's mission is to be a world leader in the commercialization of over-the-counter, safe and effective chronic ailment treatments. Please visit our websites at www.swissmedica.com, www.O24zone.com and www.pmsescape.com.

Swiss Medica's flagship product, the O24 Essential Oil Pain Neutralizer, holds US Patent #6,444,238B1. The O24 pain relief solution has been used and recommended for its fast-acting and long-lasting benefits by healthcare professionals and athletes in the United States, Canada and in Europe. O24 is widely available over-the-counter throughout the United States and Canada in leading pharmacies and other retailers. Customers can also visit www.O24zone.com, for ordering details and store locators for the nearest pharmacy.

Swiss Medica has recently launching the patented O24 Fibromyalgia pain reliever (US Patent #6,444,238B1) over-the-counter in North American retailers. The National Fibromyalgia Association (NFA) recently awarded O24 Fibromyalgia their first NFA Seal of Approval. Over 10 million Americans suffer from the long-term pain associated with Fibromyalgia. In a randomized double blind clinical trial conducted in 2005, 88 per cent of the patients who used O24 Fibromyalgia reported mild to markedly better improvement, versus only 7 per cent who used the placebo. Customers can also visit www.O24zone.com, for ordering details and store locators for the nearest retailer.

Swiss Medica also distributes PMS Escape® which holds US Patent #'s 5760014 and 5612320. PMS Escape® is a specially formulated group of carbohydrates, vitamins and minerals, clinically proven to reduce changes in mood and appetite that women experience during the premenstrual period. Customers can also visit: www.pmsescape.com for additional information and ordering details.

Forward-looking statements in this news release are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to acceptance of Swiss Medica's products in Canada, the United States and other countries, risks related to international sales and purchases and potential foreign currency exchange fluctuations, acceptance of Swiss Medica's products, increased levels of competition, dependence on intellectual property rights and other risks detailed from time to time in Swiss Medica's periodic reports filed with the United States Securities and Exchange Commission and other regulatory authorities.

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