SOURCE: GelStat Corporation

November 14, 2006 08:00 ET

GelStat Announces the Retention of Accomplished Business Development and Marketing Firm U.S. Marketing

ST. PAUL, MN -- (MARKET WIRE) -- November 14, 2006 -- GelStat Corporation (PINKSHEETS: GSAC), a consumer healthcare company primarily focused on the development and marketing of over-the-counter (OTC) products for the safe and effective treatment of pain and inflammation, is pleased to announce that it has retained the services of U.S. Marketing Ltd. to lead a comprehensive plan to increase brand recognition, drive revenue growth, reduce operating expenses and achieve profitability.

John Galayda, Managing Director of U.S. Marketing, stated, "Our team has an enormous wealth of experience in business development and marketing of consumer products, as well as direct experience with the launch of new OTC healthcare products. GelStat's portfolio of four truly unique branded products designed to treat numerous ailments including migraine headaches, sinusitis, arthritis and problem sleep, provides the foundation for a bright future. Collectively, these health issues affect over 100 million people and drive over $10 billion dollars in annual sales of therapeutic remedies today. We will aggressively pursue a significant share of this marketplace with GelStat's product line."

To implement phase one of this plan, U.S. Marketing has taken over responsibility for GelStat's marketing and operations and is now working expeditiously to increase consumer awareness, effectively communicate with shareholders, reduce inventory levels and increase revenues. James LaFlamme, GelStat Director, stated, "We are excited to open a new chapter in GelStat's future and look forward to working with the U.S. Marketing team to achieve our common goals."


U.S. Marketing Ltd. is a diverse communications, business development and project management company. For over 18 years U.S. Marketing has provided quality innovative services to increase sales and brand awareness for a variety of products and industries that range from start up companies to Fortune 500 corporations.


GelStat Corporation is dedicated to providing safe and effective over-the-counter (OTC) treatments for pain and inflammation. GelStat's first product, GelStat Migraine, is sold nationwide through approximately 16,000 retail chain stores and 4,000 independent retailers and pharmacies.

GelStat Migraine is a sublingually (under the tongue) administered OTC medication for acute relief from the pain and associated symptoms of migraine. Over 90 percent of the 30 million Americans with migraine use OTC headache remedies, generally aspirin or other non-steroidal anti-inflammatory drugs. Americans spend $2.6 billion each year on 600 million units of such products, although they are believed to be effective for only about 25 percent of those with moderate to severe migraine. The initial clinical trial of GelStat Migraine showed it to be effective for 83 percent of those with moderate to severe migraine.

The Company also has a suite of additional, effective healthcare products that address large consumer markets. GelStat™ Arthritis is the second available product to utilize GelStat's patent pending formulation. It is provided as a daily use, sublingual dissolving tablet. Arthritis and chronic joint symptoms are among the most common medical complaints in the United States. The Center for Disease Control estimates that, in its many forms, arthritis affects up to 70 million Americans, causing significant, often long-term pain and disability. Typical arthritis medications often provide only marginal relief, and are increasingly associated with frequent and significant side effects such as gastrointestinal bleeding, stroke, heart attack and potentially life-threatening skin reactions.

The Company has also developed "GelStat™ Sinus" and "GelStat™ Sleep," and believes that each of these products performs well and is effective for its intended use. The National Institute of Allergy and Infectious Disease estimates that 37 million Americans are affected by sinusitis every year, with at least 20 million more suffering from allergies. Approximately 70 million Americans are reported to be "problem sleepers."

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Safe Harbor Statement Under the Private Securities Litigation Act of 1995

With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of GelStat could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors, please review our SEC filings.

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