SOURCE: Pyng Medical Corp.

March 02, 2005 09:00 ET

Pyng Medical Corp: Strong Growth in First Quarter 2005

RICHMOND, BC -- (MARKET WIRE) -- March 2, 2005 -- Pyng Medical Corp. (OTC: PYNGF) (TSX-V: PYT) continues to have strong growth in the first quarter of fiscal 2005 ending December 31st, 2004, with sales this quarter of $423,410. Strong Civilian and Military sales to date and expanding market potential in Europe all contribute to put us on track to achieve our sales target for this fiscal year.

With the announced endorsement of a strong recommendation from the Committee on Tactical Combat Casualty Care (CoTCCC) for the US Forces of the F.A.S.T.1 System as the Intraosseous Infusion System of choice for the US Military and Civil Defense, we also expect continued military growth in 2005 and beyond.

We have also begun a concerted effort to increase awareness in Europe and the Middle East. Pyng Medical Corp. has been informed by our current European and Middle East distribution channels to expect orders very soon for our F.A.S.T.1 product in those areas as they are now actively quoting, which will also help to continue growth in 2005.

Pyng Medical Corp. has prepared the financial statements, in accordance with the new and current GAAP rules. Pyng Medical is fully compliant with all of the new accounting requirements. The quarter report was filed with SEDAR and is available at www.sedar.com. We have also sent the mail outs to stockholders of record.

Financial Highlights: Pyng Medical Corp. generated sales of $423,410 in this first quarter of 2005 compared to sales in the same period last year of $286,650. This is a gain of 48%. Gross Margin for the year to date increased to $255,669 (60.40%).

Total expenses incurred during this period were $321,262, which includes $35,102 for Amortization and Depreciation associated with deferred research and development and other capital assets. Expenses of $21,183 are included for repayment of a MED TAP Grant from Industry Canada and $20,368 for stock option based compensation.

The depreciation of the U.S. Dollar in this quarter had a negative effect as the majority of sales are in US Dollars. The foreign exchange loss accounted for $8,791 for this period. Net loss inclusive of amortization, depreciation, and stock based compensation was $65,549, or $0.01 cents per share. Excluding depreciation, amortization, and stock based compensation, the loss is reduced to $10,079.

Pyng Medical Corp will be taking measures to counteract the effects of the depreciation of the U.S. Dollar effective in the second fiscal quarter of 2005.

On Behalf of the Board,

Michael W. Jacobs,
Chairman, Pyng Medical Corp
The Toronto Venture Exchange has neither reviewed nor approved of the contents of this News Release. Safe Harbor Statement: This release may contain certain forward-looking statements including without limitation, projections, assumptions, expectations, product development objectives, commercial introduction, and potential advantages of the F.A.S.T.1 System. Actual events or results may differ from the Company's expectations as a result of risk factors discussed in Pyng Medical Corp. reports on file with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's report on Form 20F for the year ended September 30, 2004.

Contact Information

  • Contact:
    Michael Jacobs
    President
    Pyng Technologies Corp.
    (604) 303-7964