SOURCE: Medical Services International Inc

August 02, 2005 12:05 ET

Medical Services International Inc to Receive Marketing Fees

EDMONTON, AB -- (MARKET WIRE) -- August 2, 2005 -- Medical Services International Inc (OTC: MSITF) is pleased to announce that it has been approached by several medical supply companies who want an introduction into China. Leveraging our substantial contacts in China and other areas worldwide, as well as our relationship with The Nutmeg Group LLC, Medical Services has entered into a Distribution/Marketing agreement whereby Medical Services receives upfront marketing fees of at least $150,000 US per company for the first year for every company which Medical Services introduces to its contacts in China.

The first of these agreements is with Physicians Healthcare Management Group, Inc (Phyhealth), which is seeking a high-quality, low-cost source for pharmaceutical-grade supplements and other medical products for wide distribution through its community health plan networks. Phyhealth also plans to utilize Medical Services' existing VScan products in its programs to promote healthier communities.

Physicians Healthcare Management Group Inc. (Phyhealth), with offices in Miami, Florida, is engaged in the business of developing and operating community-based Medicare-certified HMOs in partnership with physicians and providing for their professional liability requirements. Phyhealth Plans provide the foundation for physicians to own and manage a fully integrated healthcare delivery and financing organization. Its unique health plan model strongly emphasizes an informed and involved local community of providers and consumers. A source of high-quality, low-cost pharmaceutical-grade supplements will be important in implementing this plan.

The $150,000 US minimum upfront fees required by the Distribution/Marketing agreement are due within 30 days. In addition to the above, Medical Services anticipates receiving additional fees as these companies sign contracts in different countries. The Nutmeg Group has informed us that it anticipates many other subscribers to this type of fee-based facilitation arrangement, inuring to the benefit of both Medical Services and the client company.

About VScan

The VScan rapid test kit is a single-use, disposable, accurate, cost-effective, easy-to-use test for the screening of HIV1&2, Hepatitis B&C, Tuberculosis (TB), Dengue Fever, West Nile, Syphilis, Malaria and Prostate Cancer. The kits cannot be sold in Canada.

Medical Services International Inc trades in the United States on the NQB Pinksheets under the symbol "MSITF." For further information, please contact Robert Talbot at (780) 430 6363 or Bill Whitehead Jr. at (416) 822 5883 or or

NOTE: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause results to differ materially. Such risks, uncertainties and other factors include but are not limited to new economic conditions, risk in product development, level of competition and other factors described in Company reports and other filings with regulatory bodies.

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