SOURCE: GelStat Corporation

February 13, 2007 08:00 ET

GelStat Signs Distribution and Fulfillment Agreement With Nationally Recognized Direct-to Consumer Healthcare Products Company and Industry Veteran

ST. PAUL, MN -- (MARKET WIRE) -- February 13, 2007 -- 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, announces that it has signed a distribution and fulfillment agreement with a nationally recognized direct-to-consumer healthcare products company and industry veteran.

Jim LaFlamme, the Company's Chairman of the Board of Directors stated, "This agreement is another major step towards increasing the Company's brand recognition and revenue streams while minimizing monthly expenses." Mr. LaFlamme also said, "With this agreement in place, the Company is one step away from completing Phase I of its turnaround and business development strategy."

Tom DeSantis, the President of U.S. Marketing commented, "When our firm was engaged in November of 2006 to assist the Company's Board of Directors in a restructuring plan we had three main initiatives including significantly reduce cash outflows, increase operational efficiencies and open up new sales channels. In just a few months we have reduced monthly expenses by approximately 65% and consolidated operations, as well as established direct-to-consumer revenue channels including catalog and direct response television. The announcement today is another major milestone."

This agreement significantly ads to the Company's marketing and advertising talent, while providing a solid ordering and fulfillment infrastructure. Furthermore, it brings to GelStat highly accomplished executives and consultants in many areas including internet marketing and advertising, television advertising and print advertising. This team has founded or assisted in startup efforts which resulted in sales in excess of $100 million.

ABOUT GELSTAT CORPORATION

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 retail chain stores, independent retailers and pharmacies, and direct to consumer channels. 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.

Click the following links to view supporting information on the effectiveness of GelStat Migraine:

Initial Clinical Trial of GelStat Migraine Shows it to be Effective for 83 Percent of those with Moderate to Severe Migraine

GelStat is Effective in Relieving Migraine Pain in a Double-Blind, Placebo-Controlled study

2 Minute Video Demonstrating the Product and its Successful Treatment of a Migraine Headache

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 and is provided as a daily use, sublingual dissolving tablet. The Center for Disease Control estimates that, in its many forms, arthritis affects up to 70 million Americans. 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."

For more information, visit www.gelstat.com

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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