SOURCE: MedSpas of America, Inc.

February 08, 2007 08:30 ET

MedSpas Announces Acquisition Plans for 2007

Acquisition Plans to Acquire 5 Medspas in 2007

ATLANTA, GA -- (MARKET WIRE) -- February 8, 2007 -- MedSpas of America, Inc. (PINKSHEETS: MDSP) ( today announced its medspa acquisition program for 2007.

Paul R. Smith, CEO of MDSP, stated, "Our growth plan for this year is to acquire 5 existing medspas and convert them to our brand Virtuoso Medspas. The company is currently in preliminary discussions with numerous acquisition candidates. We anticipate that upon the successful implementation of our acquisition plans this year, the Company's projected annual revenues will increase by 550%. Our primary interest this year is in the southeast USA, however, we will acquire candidates that meet our profile regardless of geography.

"The ideal acquisition candidate profile is a medspa operating in a retail environment that is strategically located to our consumers," further states Mr. Smith. "Typically these medspas are located in high-end retail shopping centers with a footprint of approximately 2,000 square feet. The major problem confronting these medspas is they need help with capital and marketing. Our acquisition model includes assumption of the equipment and the property leases with a purchase note payable over a 3-year period. The Company spends its cash in brand conversion to Virtuoso Medspas and a strong community-based marketing and sales program."

About MedSpas of America, Inc.

The company is dedicated to build Virtuoso Medspas into a nationally branded chain. Our growth strategy is to acquire operating medspas and convert them to our Virtuoso Medspas. Our vision is to provide our clientele with "The Gift of Beautiful Skin" utilizing the most recent technologies and highly skilled medical staff in a spa atmosphere. The company is currently the only publicly traded company of its kind that operates in the medspa industry.

This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance. Such statements are subject to risks and uncertainties and other factors as may be discussed from time to time in the Company's public filings with the U.S. Securities and Exchange Commission ("Commission"), press releases and verbal statements that may be made by our officers, directors or employees acting on our behalf which could cause actual results to differ materially from those discussed in the forward looking statements and from historical results of operations. In addition to statements, which explicitly describe such risks and uncertainties, statements with the terms "believes," "belief," "expects," "plans," "anticipates" and similar statements should be considered uncertain and forward-looking. Factors that might cause such a difference include, without limitation: the uncertainty of the Company's ability to meet capital needs and as further set forth in our public filings filed with the Commission and our press releases.

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