Swiss Medica, Inc.
OTC Bulletin Board : SWME

Swiss Medica, Inc.

July 25, 2005 06:00 ET

Swiss Medica Announces Second Quarter Revenues; Re-Affirms 2005 Guidance

TORONTO, ONTARIO--(CCNMatthews - July 25, 2005) - Swiss Medica, Inc's (OTCBB:SWME) second quarter revenues grew to a record US$1.38 million - an increase of more than 22 percent over the Company's first quarter revenues. Six month revenues exceeded US$2.5 million, a 403-percent increase over FY2004 revenues.

"We continued obtaining new distribution for the O24 Pain Neutralizer product during the first six months of 2005," announced Chief Executive Raghu Kilambi. "We anticipate even stronger growth during the final six months of 2005 with pre-commitments of initial orders from major U.S. and Canadian retailers for the widespread launches of O24 Fibromyalgia and PMS Escape in addition to continuing initial U.S. and Canadian retail orders and re-stocking orders for O24 Pain Neutralizer. Based upon retailer commitments, we anticipate net revenues of US$3 million for the third quarter, ending 30 September 2005. With the O24 Fibromyalgia and PMS Escape products, we are in the enviable position of launching and marketing two new clinically tested solutions for chronic ailments, which affect many millions of consumers, and there are limited competitive alternative products. Swiss Medica will have three world-class chronic ailment products available in U.S. national retailers by the end of the third quarter."

At June's National Association of Chain Drug Stores (NACDS) Marketplace Conference in New Orleans, leading pharmacy retailers expressed exceptionally strong interest in the patented unique O24 Fibromyalgia product because there is no other focused Fibromyalgia product available to consumers. The National Fibromyalgia Association (NFA) recently awarded O24 Fibromyalgia their first NFA Seal of Approval. According to the NFA, upwards of 11 million Americans may be suffering from the long-term pain associated with fibromyalgia. This wide acceptance began with the March 29th announcement of a randomized double blind clinical trial, comparing O24 Fibromyalgia against a placebo on patients suffering from fibromyalgia. For participants who used O24 Fibromyalgia™, more than 90 per cent of the patients reported mild to markedly better improvement on the 7-point Lanier rating scale, versus only 7 per cent who used the placebo. This double blind clinical trial was conducted earlier this year by Dr. Gordon Ko (Head, Fibromyalgia Clinic) and Dr. David Berbrayer (Head, Dept. Rehabilitation Medicine) at Sunnybrook & Women's Health Sciences Centre (University of Toronto).

Retail interest for Swiss Medica's patented PMS Escape product is quickly building due to factors including: (a) two multi-site, double blind, placebo controlled clinical studies performed at Harvard's Massachusetts General Hospital, Duke University, University of North Carolina, and the University of Pennsylvania, and with results previously published in the American Journal of Obstetrics and Gynecology; and (b) the availability of the product's inventor, Dr. Judith Wurtman, research scientist, Department of Brain and Cognitive Science, Massachusetts Institute of Technology (MIT), for talk show appearances and newspaper/magazine interviews on the product. It should be noted that during Dr. Wurtman's last publicity tour, a year ago, she was featured in many major media outlets, including Time magazine and the New York Times. As a leading expert on the subject of "serotonin and nutrition", Dr. Wurtman is frequently an expert called upon by the media for commentary with regards to major nutritional trends. The PMS Escape product has been clinically proven to decrease the mood and appetite symptoms of Premenstrual Syndrome (PMS) by working naturally with the body to increase serotonin levels in the brain, an emotional and appetite benefit for the 27 million women who suffer from these PMS symptoms.

"On this basis, we are re-affirming revenue guidance for FY2005." said Mr. Kilambi. "For the twelve-month period, ending 31 December 2005, Swiss Medica, Inc. expects net revenues of between US$12 and US$14 million. We also expect to report positive EBITDA by the fourth quarter 2005."

Swiss Medica defines EBITDA as earnings before interest and financing fees, taxes, depreciation, amortization, and other non-cash charges. Full second quarter results, for the period ending 30 June 2005, will be included in the Company's 10-Q, which will be filed with the U.S. Securities and Exchange Commission by August 15th.

About Swiss Medica Inc.

Swiss Medica commercializes proprietary bioscience products that relieve chronic ailments. We increase our market share through focused distribution strategies in multiple sales channels. Swiss Medica's mission is to be a world leader in the commercialization of life enhancing bioscience products that improve quality of lives. Please visit our websites at www.swissmedica.com, www.O24zone.com and www.pmsescape.com

Swiss Medica's flagship product, the O24™ Essential Oil Pain Neutralizer, holds US Patent #6,444,238B1. The O24™ pain relief solution has been used, recommended and praised for its fast-acting and long-lasting benefits by healthcare professionals and athletes in the United States, Canada and in Europe. O24 is widely available throughout the United States and Canada in leading pharmacies and other retailers. Customers can also visit www.O24zone.com, for ordering details and store locators for the nearest pharmacy.

Swiss Medica also manufactures PMS Escape® which holds US Patent #'s 5760014 and 5612320. PMS Escape® is a specially formulated group of carbohydrates, vitamins and minerals, clinically proven to reduce changes in mood and appetite that women experience during the premenstrual period. Customers can also visit: www.pmsescape.com for additional information and ordering details.

Forward-looking statements in this news release are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to international sales and potential foreign currency exchange fluctuations, continued acceptance of Swiss Medica's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Swiss Medica's periodic reports filed with the United States Securities and Exchange Commission and other regulatory authorities.

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