SOURCE: MedeFile International, Inc.

MedeFile International, Inc.

May 17, 2011 07:00 ET

Medefile International Reports First Quarter 2011 Results

Revenue Performance Reflects Rapid Growth of Members on iPHR Platform

BOCA RATON, FL--(Marketwire - May 17, 2011) - MedeFile International, Inc. (OTCQB: MDFI) (PINKSHEETS: MDFI), a leader in Internet-enabled Personal Health Record (iPHR) management solutions, today announced its financial results for the first quarter reporting period, ended March 31, 2011.

Financial Highlights for Three Months Ended March 31, 2011 Compared to Three Months Ended March 31, 2010:

--  Revenues totaled $132,102, representing a 56-fold (5600%)
    increase over revenues of $2,359. The increase was
    attributable to notable growth of the MedeFile system's
    member base.
      --  When comparing subsequent quarter-over-quarter
           results, revenues from MedeFile memberships for the
           three months ended March 31, 2011 totaled $132,102,
           rising 59% from revenues of $83,365 booked for the three
           months ended December 31, 2010.

--  Due largely to increased operating expenses related to the
    implementation of sales, marketing and strategic business
    development initiatives, net loss totaled $448,193, or $0.00 loss
    per basic and diluted share, compared to a net loss of $90,541,
    or $0.00 loss per basic and diluted share.

--  As of March 31, 2011, cash totaled $388,398; there was zero long
    term debt; and stockholders' equity totaled $207,868.

For more detailed information relating to the Company's first quarter 2011 results, please refer to the financial statements included with this press release and the 10-Q that was filed with the U.S. Securities and Exchange Commission yesterday afternoon, May 16, 2011.

Operational Highlights:

--  Active members on the MedeFile system numbered over
    7,000 as of the end of March 2011, up from approximately
    5,100 as of December 31, 2010. Over the past six weeks,
    membership growth has continued to escalate, with nearly
    13,000 members now taking control of their healthcare through
    subscriptions to MedeFile's personal health record management
    system.

--  Over the past several months, management has succeeded
    in securing a number of strategic co-marketing agreements and
    collaborations, which are expected to lead to a significant
    increase in new members in the coming year. They include:
      --  PrescriptionDrugs.com, a free online resource for
          comprehensive drug discount and couponing programs
          for prescription drugs;
      --  Carlisle & Associates, a leading healthcare industry
          consultancy firm;
      --  National Association of Local Advertisers (NALA™), a member-
          based marketing group comprised of local businesses from across
          the nation;
      --  MedSave USA, one of the nation's leading providers of healthcare
          cost containment and medical record retrieval services;
      --  HealthPro BioVentures, LLC, a leading life sciences investment
          bank and strategic advisory firm serving the Biotechnology,
          Biomedical, Healthcare and Pharmaceutical sectors.

--  Subsequent to the end of the first quarter, the Company announced
    that it had enrolled five new medical practices and physician practice
    groups into its Quality of Care Program. This marketing initiative
    provides for MedeFile to partner on a revenue-sharing basis with
    established medical practitioners, physician groups and hospitals
    to educate patients on the benefits and advantages of becoming
    MedeFile members. These five medical practices and physician
    groups serve a collective patient base of nearly 55,000 lives.

--  MedeFile's adoption of social networking tools as a means to reach
    and access prospective new members has helped to yield a notable
    increase in followers on its Facebook page. Since the end of the 2010,
    people who "like" MedeFile on the popular social network has risen from
    approximately 1200 to over 8,000. Moreover, the informative blog
    featured on the Company's web site was nominated for two Best of Blog
    Awards (also known as the "Bob Awards") this spring by the Sun
    Sentinel.

"As reflected in our first quarter results and by the numerous exciting new business developments we've been announcing, MedeFile is now achieving strong momentum in the emerging PHR industry, and we couldn't be prouder," noted Hauser. "Our success at forming marketing collaborations with many of the nation's recognized thought leaders in Healthcare IT serves to support and validate that MedeFile is being viewed as the digital PHR platform capable of effecting mainstream adoption of electronic personal health records by every healthcare consumer."

Direct quotes from new MedeFile partners include:

--  Carl Underland, founder and CEO of Carlisle & Associates: "Through its
    development of what we believe to be one of the most robust, intuitive
    iPHR solutions available in the market, MedeFile now occupies a very
    critical space in the fast evolving healthcare continuum. By equipping
    patients with MedeFile's iPHR tools and services, individuals will be
    able to fully engage with their providers at the point of care,
    enabling more focused health solutions and outcomes while driving
    value creation and cost-savings across the full spectrum of care."

--  Gonen Antebi, CEO of MedSave USA: "Our partnership with MedeFile
    marks an important step forward in our efforts to support universal
    adoption of advanced healthcare IT by our clients and the move
    towards ubiquitous use of personal electronic health records across 
    the healthcare continuum."

--  John Andreadis, Managing Partner of HealthPro BioVentures: "In our
    professional opinion, the rich and intuitive functionality and robust
    feature set of the MedeFile system makes it the superior PHR solution
    on the market today, which bodes extremely well for the future of
    MedeFile. Consequently, HealthPro BioVentures looks forward to
    working in concert with MedeFile's management team to leverage
    our longstanding relationships with major companies in the
    healthcare industry to pursue opportunities that will help promote mass
    adoption of the MedeFile platform as the preferred personal health
    record management solution."

FINANCIAL CHARTS FOLLOW


                        MedeFile International, Inc
                         Condensed Balance Sheets


                                                   Unaudited
                                                   March 31,     December
Assets                                                2011       31, 2010
                                                  -----------  -----------
Current assets
   Cash                                           $   388,398  $   499,652
   Inventory                                           20,418       22,184
   Merchant services reserve                           10,950        6,173
   Accounts receivable, net                             3,991        2,468
                                                  -----------  -----------
Total current assets                                  423,757      530,477
   Website development, net of accumulated
    amortization                                       41,963       47,210
   Furniture and equipment, net of accumulated
    depreciation                                       17,764       20,364
   Investment                                           1,800            -
   Intangibles                                          1,339        1,339
                                                  -----------  -----------
      Total assets                                $   486,623  $   599,390
                                                  ===========  ===========

Liabilities and Stockholders' Equity
   Accounts payable and accrued liabilities       $   257,269  $   310,325
   Cash overdraft                                      13,947        6,928
   Deferred revenues                                    7,539        9,575
                                                  -----------  -----------
     Total Current Liabilities                        278,755      326,828


Stockholders' Equity
   Preferred stock, $.0001 par value: 10,000
    authorized,
    no shares issued and outstanding                        -            -
   Common stock, $.0001 par value: 5,000,000,000
    authorized; 3,459,396,410 and 3,450,021,410
    shares issued and outstanding on March 31,
    2010 and December 31, 2010, respectively          345,939      345,002
   Common stock payable                               230,000            -
   Additional paid in capital                      16,242,678   16,090,116
   Accumulated deficit                            (16,610,749) (16,162,556)
                                                  -----------  -----------
      Total stockholders' equity                      207,868      272,562
                                                  -----------  -----------
              Total liability and stockholders'
               equity                             $   486,623  $   599,390
                                                  ===========  ===========




                        MedeFile International, Inc
                    Condensed Statements of Operations
                                (unaudited)


                                              For the Three  For the Three
                                              Months Ended   Months Ended
                                                March 31,      March 31,
                                                  2011           2010
                                              -------------  -------------
Revenue                                       $     132,102  $       2,359

Cost of goods sold                                   63,475              -
                                              -------------  -------------
Gross profit                                         68,627          2,359

Operating expenses
   Selling, general and administrative
    expenses                                        379,120         79,175
   Maketing expense                                 129,854              -
   Depreciation and amortization expense              7,846          4,250
                                              -------------  -------------
     Total operating expenses                       516,820         83,425

     Loss from operations                          (448,193)       (81,066)

Other Income (Expenses)
   Interest expense  - note payable                       -         (7,709)
   Interest expense - related party note
    payable                                               -         (1,766)
                                              -------------  -------------
     Total other income (expense)                         -         (9,475)

Loss before income tax                             (448,193)       (90,541)
   Provision for income tax                               -              -
                                              -------------  -------------
Net Loss                                      $    (448,193) $     (90,541)
                                              =============  =============

Net loss per share: basic and diluted         $       (0.00) $       (0.00)
                                              =============  =============

Weighted average share outstanding            3,450,021,410  1,463,021,410
  basic and diluted                           =============  =============





About MedeFile International, Inc. Headquartered in South Florida, MedeFile has developed and globally markets a proprietary, patient-centric, iPHR (Internet-enabled Personal Health Record) system for gathering, digitizing and organizing medical records so that individuals can have a comprehensive record of all of their medical visits. MedeFile's primary product is its web-based MedeFile solution, a highly secure system for gathering, maintaining, accessing and sharing personal medical records. Interoperable with most electronic medical record management systems marketed to the healthcare industry, the MedeFile solution is designed to gather all of its members' actual medical records and create a single, comprehensive Electronic Health Record (EHR) that is accessible 24 hours a day, seven days a week by the member and the member's authorized users on any web-enabled device (PC, cell phone, smartphone, e-reader) and portable MedeDrive unit. For more information about MedeFile and its annual subscription-based programs, please visit www.medefile.com. You can also follow the Company on Facebook!

Safe Harbor Statement Under the Private Securities Litigation Reform 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 MedeFile 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 rates, 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 associated with our Company, review our SEC filings.

Contact Information

  • FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
    Elite Financial Communications Group, LLC
    Dodi B. Handy
    President and CEO
    (Twitter: dodihandy)

    For Media:
    Kathy Addison
    COO
    (Twitter: kathyaddison)
    (407) 585-1080
    or via email at Email Contact