SOURCE: MedSpas of America, Inc.

February 07, 2007 08:30 ET

MedSpas Identifies 250 Acquisition Targets

Acquisition Plans to Acquire 50 Medspas in Next 5 Years

ATLANTA, GA -- (MARKET WIRE) -- February 7, 2007 -- MedSpas of America, Inc. (PINKSHEETS: MDSP) ( today announced the company has identified approximately 250 medspas in the USA that fit its acquisition profile.

Paul R. Smith, CEO of MDSP, stated, "There are approximately 1,500 medspas operating in the USA today. One-third of these medspas are performing very well yielding 15% to 25% net operating profit. Another third are new and just moving through their break-even point. The balance, or approximately 500 medspas, are facing challenges as a result of poor locations, undercapitalization, partnership disputes, or lack of marketing.

"It is in this under-performing category where the opportunity lies for the company," further states Mr. Smith. "Of the 500 medspas that are under-performing, one-half is due to location problems. We cannot solve this problem. That leaves approximately 250 medspas in the USA where the application of our acquisition and brand conversion model provides the solution to these under-performing medspas. As the industry maintains its incredible growth rate, the pool of acquisition candidates will continue to grow over the next five years."

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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