Medical Ventures Corp.
TSX VENTURE : MEV

Medical Ventures Corp.

April 06, 2006 09:00 ET

Medical Ventures Reports Q4 2005 and Year End Financial Results

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - April 6, 2006) - MEDICAL VENTURES CORP. (MEV) (TSX VENTURE:MEV) announces the results of operations for Q4 2005 and year-end.

The year 2005 was one of significant progress for the Company, which included measurable advances in its sales and marketing activities and results. The Company continues to make considerable progress in the development and commercialization of its medical device products, as evidenced by an expanded product offering, publications of clinical data and continued extension of regulatory approvals.

Sales & Marketing Results:

- Increased revenues for the tissue and surgical product line during Q4 from $70,308 in 2004 to $169,167 for the same period in 2005, a year-over-year increase of 141 per cent.

- Increased revenues for the tissue and surgical product line for the fiscal year from $169,827 in 2004 to $256,264 in 2005, a year-over-year increase of 51 per cent.

- Increased revenues for the Metricath® catheter product line from $17,537 in the first half of 2005 to $90,157 in the second half of 2005-an increase of 414 per cent during the year.

- Expanded the distribution network to include Canada, the United States, Mexico, China, Brazil and select European markets.

- Showcased MEV products at several major industry conferences, including TCT in Washington, DC and EuroPCR in Paris, France.

Regulatory Approvals:

- Received FDA 510(k) clearance to use the Metricath Gemini® "measure-and-treat" balloon catheter in peripheral artery procedures in the United States.

- Received CE Mark approval to sell the PeriPatch™ EQ (equine tissue) Sheet throughout the European Union.

Clinical Developments:

- Commenced enrolment of patients in GAAME (Gemini Angioplasty and Arterial Measurement Evaluation), a clinical trial to demonstrate the utility of the Metricath Gemini for coronary artery procedures. This trial will generate data to support the Company's application for FDA approval to use the Gemini in the coronary artery market.

- Completed and published results from the CAMUS (Coronary Angioplasty Metricath vs. Ultrasound) clinical trial, which compared the Metricath Libra's® accuracy and effectiveness for stent and arterial measurement to an established clinical measurement tool: Intravascular Ultrasound (IVUS). These findings indicated:

"Metricath potentially offers an easy to use alternative to IVUS; in addition, a combined Metricath and balloon angioplasty catheter (Gemini) might be of considerable practical value and could be produced at considerably lower cost than current IVUS technology."

Results were published in the August 2005 issue of EuroIntervention, and were presented at the European Society of Cardiology Congress (ESC2005) in Stockholm.

Capital Markets:

- In June 2005, completed a brokered private placement of shares for total gross proceeds of $4.2M.

- Subsequent to the year-end, completed a $7.5M private placement financing.

Additions to Board of Directors:

Added three new independent directors to the board: Mr. Douglas G. Janzen, Dr. Lindsay Machan, and Dr. James Miller-individuals with professional expertise in the medical and medical devices fields, and solid experience in the public investor markets. Additionally, the Company has granted 32,800 options to a director exercisable at $0.51 per share for a period of five years.

Outlook:

- Subsequent to the year-end, the Company applied for CE Mark approval to market and sell the Metricath Gemini in the EU; the Company anticipates receiving this clearance later in 2006.

- Expect GAAME trial to be completed in late 2006, providing data necessary to support the FDA application for approval to use the Metricath Gemini in coronary artery procedures.

- Developing future applications of the Metricath Gemini; this, and an expanding size matrix for catheters, will mean increased options for physicians as the products' efficacy expands.

- Gaining traction in the marketplace for the bovine and equine tissue product lines. Increased sales and distribution efforts are expected to yield additional gains in these areas throughout the coming year.

The following is a summary of MEV's financial performance for the year ended December 31, 2005. Full financials are available on Sedar (www.sedar.com) and Medical Ventures website (www.medical-ventures.com).



MEDICAL VENTURES CORP.
Consolidated Balance Sheets

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December 31, December 31,
2005 2004
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ASSETS

CURRENT
Cash and cash equivalents $ 1,220,940 $ 1,320,965
Accounts receivable 117,565 50,509
Prepaid expenses and deposits 152,929 18,768
Inventory 1,194,696 1,555,970
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2,686,130 2,946,212
LONG-TERM INVESTMENTS 165,904 40,701
PROPERTY AND EQUIPMENT 905,294 949,550
TECHNOLOGY - 889,073
FUTURE INCOME TAXES - 461,602
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$ 3,757,328 $ 5,287,138
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LIABILITIES

CURRENT
Accounts payable and
accrued liabilities $ 267,697 $ 200,658
Current portion of long-term debt 34,800 34,800
Current portion of repayable
contribution agreement 50,000 -
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352,497 235,458
FUTURE INCOME TAXES - 146,024
LONG-TERM DEBT 177,271 212,071
REPAYABLE CONTRIBUTION AGREEMENT 357,366 -
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887,134 593,553
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SHAREHOLDERS' EQUITY

Share capital 14,898,734 10,635,599
Contributed surplus 387,935 215,559
Deficit (12,416,475) (6,157,573)
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2,870,194 4,693,585
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$ 3,757,328 $ 5,287,138
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MEDICAL VENTURES CORP.
Consolidated Statements of Operations and Deficit

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For the For the For the For the
quarter quarter year year
ended ended ended ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
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SALES $ 231,405 $ 139,102 $ 363,958 $ 873,655
COST OF SALES 249,354 117,197 325,008 588,318
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GROSS PROFIT (17,949) 21,905 38,950 285,337
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EXPENSES
Selling 270,198 163,547 606,839 632,626
General and
administration 990,535 509,051 2,307,919 1,684,679
Research and
development 670,614 547,806 1,715,072 1,357,311
Amortization 36,585 302,229 1,169,311 1,199,032
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1,967,932 1,522,633 5,799,141 4,873,648
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OTHER INCOME
(EXPENSES)
Lease 628 1,625 6,276 3,875
Interest income 8,478 6,559 36,027 45,964
Interest on
long-term debt (2,815) (2,932) (11,212) (12,036)
Interest expense (22) (31) (1,857) (1,104)
Write-off of
investment (40,701) - (40,701) -
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(34,432) 5,221 (11,467) 36,699
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LOSS BEFORE
INCOME TAXES (2,020,313) (1,495,507) (5,771,658) (4,551,612)
FUTURE
INCOME TAXES 647,061 786,427 487,244 194,056
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NET LOSS (2,667,374) (2,281,934) (6,258,902) (4,745,668)
DEFICIT,
BEGINNING
OF PERIOD (9,749,101) (3,875,639) (6,157,573) (1,411,905)
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DEFICIT,
END OF
PERIOD (12,416,475) (6,157,573) $(12,416,475) $ (6,157,573)
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BASIC AND
DILUTED
LOSS PER
SHARE $ (0.05) $ (0.07) $ (0.14) $ (0.14)
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WEIGHTED
AVERAGE
NUMBER
OF COMMON
SHARES
OUTSTANDING 52,228,886 34,312,315 44,317,379 32,938,962
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MEDICAL VENTURES CORP.
Consolidated Statements of Cash Flows
For the year ended

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December 31, December 31,
2005 2004
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OPERATING ACTIVITIES
Net loss for the year $ (6,258,902) $ (4,745,668)
Items not affecting cash
Amortization 1,169,311 1,199,048
Write-off of investment 40,701 -
Repayable contribution agreement 407,366 -
Stock based compensation 172,376 113,104
Future income taxes 487,645 194,056
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(3,981,903) (3,239,460)
Change in non-cash operating assets
and liabilities
Accounts receivable (67,056) 353,672
Prepaid expenses and deposits (134,161) 78,789
Inventory 195,370 (1,090,777)
Accounts payable and
accrued liabilities 67,039 (70,840)
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(3,920,712) (3,968,616)
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INVESTING ACTIVITIES
Purchase of property and equipment (87,648) (197,371)
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(87,648) (197,371)
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FINANCING ACTIVITIES
Proceeds from share issuances,
net of costs 3,943,135 5,230,814
Proceeds from exercise of stock
options and warrants - 150,051
Repayment of long-term debt (34,800) (34,800)
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3,908,335 5,346,065
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(DECREASE) INCREASE IN CASH (100,025) 1,180,078
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 1,320,965 140,887
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CASH AND CASH EQUIVALENTS,
END OF YEAR $ 1,220,940 $ 1,320,965
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Medical Ventures Corp. is a medical device and technology company dedicated to acquiring and developing medical technologies that clearly address a clinical need in the cardiovascular and surgical marketplace.

Statements contained herein that are not based on historical or current fact, including without limitation statements containing the words "anticipates", "believes", "may", "continue", "estimate", "expects", and "will" and words of similar import, constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, both nationally and in the regions in which the Company operates; technology changes; competition; changes in business strategy or development plans; the ability to attract and retain qualified personnel; existing governmental regulations and changes in, or the failure to comply with, governmental regulations; liability and other claims asserted against the Company; and other factors referenced in the Company's filings with Canadian securities regulators. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company does not assume the obligation to update any forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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