SOURCE: BioElectronics Corporation

BioElectronics Corporation

August 26, 2009 10:21 ET

BioElectronics Board Comments on Recent Trading Activity

Company to Execute Plan to Move to OTC Market -- Provides Update on Corporate Activities

FREDERICK, MD--(Marketwire - August 26, 2009) - BioElectronics Corp. (PINKSHEETS: BIEL), the maker of inexpensive, disposable drug-free anti-inflammatory devices, today provided its investors commentary on recent trading activity, its intention to move to the over-the-counter board and made comments relative to corporate activities. The following comments were approved by the Board of Directors of BioElectronics.

For the past several months, Pink OTC Markets Inc., a company that provides the leading interdealer electronic quotation and trading system in the over-the-counter securities market, has blocked quotes for our shares from its website until adequate current information is made available. Additionally, this organization has claimed BioElectronics has engaged in questionable promotion of its stock. Several weeks ago we filed some of the information that is being requested, including income statements, balance sheets and statements of cash flows for the period ending June 2009. These financial statements outlined our recent obtainment of profitability and positive cash flow. We are currently diligently working to provide the additional requested information.

Shareholder interest in BioElectronics is highly significant, which has resulted in a torrent of telephone calls and e-mails into the Company from investors requesting information, overwhelming our limited staff. More than 2,250 investors dialed into our last conference call with several hundred others being unable to gain access due to the capacity of the conference bridge being reached. Each day we receive dozens, and often hundreds, of phone calls and e-mails requesting information. Simply put -- investors are extremely enthusiastic, as are we, relative to our revolutionary, drug-free therapeutic devices and our future. Our shareholders have clearly stated their desire for us to maintain a continuing flow of information relative to our opportunities and activities. The issuance of press releases is the easiest way for us to communicate the considerable amount of information desired by our shareholder base.

According to our conversations with officials from Pink OTC Markets, the number of press releases we have issued, in their opinion, constitutes questionable promotion with the security being promoted to the public, but adequate current information about the issuer is not being made available to the public. While we understand Pink Sheets' need to monitor activities, we vigorously object to this organization's characterization that we have been engaged in questionable promotion of our stock. However, we plan to work closely with the organization to provide the information they are requesting.

The management team of BioElectronics is also currently working on a plan to move the listing of our stock to the Over-The-Counter (OTC) or another stock exchange and we are hoping to discuss these details with our shareholders over the coming weeks.

Additionally, we are currently in the process of organizing additional clinical trials. For example, we recently announced a study to compare the use of ActiPatch® Therapy for muscle pain and soreness to industry leading acetaminophen brand, Tylenol®. Patient recruitment for the study is significantly ahead of schedule and our primary investigator on the study is expecting a quick conclusion with data available over the next 60 days. While we do not believe we will need the data from these additional trials to support our currently planned FDA filings, these additional studies will further enhance our position in both the clinical setting and consumer markets.

Our priorities remain the same. We plan to continue to move toward conclusion of our clinical trials, data from which will be used to support our upcoming applications with the U.S. Government's Food and Drug Administration (FDA). Several of these trials are now coming to a close and over the coming weeks we plan to submit multiple applications to the FDA. The data we will present to the FDA will be compelling. Considering our technology is already cleared for use for one indication by the FDA, we believe our odds of clearance for additional indications are very high.

We are also continuing our aggressive international expansion with Company personnel this week visiting the Republic of Korea, India and Italy to work directly with our distributors in-country. Our recent guarantee by the U.S. Government's Export-Import Bank will meaningfully assist our international expansion efforts.

We believe our revolutionary ActiPatch and Allay™ products belong on the U.S. retail store shelf alongside other major pain relief and feminine product brands and it is our overall goal to ensure such placement occurs. We continue to believe the future for our Company is very bright. Our intent is to build a worldwide brand for drug-free pain relief and we believe we are making significant strides toward this aim. The coming few weeks and months will be very exciting for our management team, employees and our shareholders.

About BioElectronics Corporation

BioElectronics Corporation is the maker of ActiPatch® Therapy, RecoveryRx™ Devices, HealFast™ Therapy (www.healfasttherapy.com) and the Allay™ family of inexpensive, disposable drug-free anti-inflammatory devices. For more information please see http://www.BioElectronicsCorp.com.

Tylenol is a registered trademark of McNeil pharmaceutical, Inc.

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