SOURCE: MedSpas of America, Inc.

February 06, 2007 08:30 ET

MedSpas Announces Brand Conversion in Birmingham, AL

Brand Conversion Expected to Double Annual Revenues in First Year

ATLANTA, GA -- (MARKET WIRE) -- February 6, 2007 -- MedSpas of America, Inc. (PINKSHEETS: MDSP) (www.medspasofamerica.com) today announced that it is currently completing the brand conversion of its medspa in Birmingham, Alabama to VIRTUOSO MEDSPAS.

Paul R. Smith, CEO of MDSP, stated, "The brand conversion of our Birmingham medspa is scheduled for completion by the end of March 2007. We have completed our logo development and related creative imagery. Our next step is to apply the brand changes to the facility. While this being completed, our marketing team is preparing a strong advertising and sales program that will be implemented concurrent with the completion of the facility changes.

"We anticipate that our revenues will double at this location to $750,000 within the first year following the completion of the brand conversion. We further expect this location to generate $1.3 million in annual revenues in the second year maturing at $1.8 million in annual revenues by year three," further states Mr. Smith. "Upon achieving these projected revenues, this location is anticipated to yield a net operation profit of 20% on annual revenues."

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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