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5/19/2006 12:38:39 PM ET
SWISS MEDICA ANNOUCES FIRST QUARTER 2006 RESULTS AND DATE OF CONFERENCE CALL
FOR IMMEDIATE RELEASE
Stock Symbol: OTC BB: SWME
May 19, 2006
Toronto, Canada – Swiss Medica, Inc. (OTC BB: SWME) is pleased to announce that third quarter revenues for
the three months ended March 31, 2006, grew 8% over Q1 2005 quarterly results to US$1.22 million.
“While our year-over-year revenues grew, our revenues did decline from Q4 2005.” said Chief Executive Officer,
Raghu Kilambi. “As we are still in the stage of building brand awareness and gaining distribution, our quarterly
revenues will significantly fluctuate. This is due to some quarters yielding significantly larger opening stocking
orders for new channels. The good news is that through stringent inventory and cash management, we have
decreased our cash outflows from operations in Q1 2006 significantly to (US$399,000) from (US$796,000) in Q4
2005 and (US$2.75 million) in Q1 2005.”
Swiss Medica announced many significant achievements in the first 4 months of 2006 including:
- According to sales rankings from ACNielsen, the 30ml spray bottle of O24™ Pain Neutralizer was ranked the 3rd
best selling product in the topical pain relief category in Canadian drug stores in 2005, based on dollar sales at
the retail level. O24™ Pain Neutralizer was nationally launched in Canadian drug stores in September 2004.
- O24 Fibromyalgia™ was able to capitalize on its receipt of the first and only Seal of Approval from the National
Fibromyalgia Association, based in Orange, California, to gain distribution in major pharmacies in Canada and
the United States including Rite Aid, CVS/Pharmacy and Shoppers Drug Mart. O24 Fibromyalgia™ is the first
clinically tested, patented product available in national pharmacies that specifically targets the pain associated
with fibromyalgia. There are over 11 million North Americans who suffer from fibromyalgia.
- The results of a randomized double blind clinical study on O24 Fibromyalgia™ for patients suffering from
fibromyalgia was published in the Practical Pain Management Journal, (January/February 2006 issue). This
publication reaches over 37,000 medical professionals in the United States. 88 per cent of the patients who used
O24 Fibromyalgia™ in the clinical study reported mild to markedly better improvement, versus only 7 per cent
who used the placebo. A copy of the published study can be viewed at http://www.O24zone.com/Clinicals.html.
- Swiss Medica announced a U.S. healthcare industry distribution deal with North American Physicians, Inc.,
(“NAPI”) of Boca Raton, Florida. NAPI is distributing all three of Swiss Medica’s products into the healthcare
community including licensed dispensing physician offices, physician kiosks, pain management clinics, hospitals,
therapy centers, hospital pharmacies, and chiropractor and podiatry clinics. The sampling and sale of products
will be by healthcare professionals to patients in medical settings, experiencing either acute or chronic pain
afflictions as well as mood instability.
Other Marketing Activities:
- Swiss Medica attended several major, medical and biotech conferences in the United States and Canada as it
continued to gain exposure and acceptance from the medical community for its unique patented, clinically tested
OTC products. Swiss Medica continued to gain acceptance for its products as thousands of physicians in North
America requested samples of Swiss Medica products for distribution to their patients.
- Swiss Medica continued its innovative consumer brand building program of aggressive consumer sampling,
public relations and targeted media to build brand recognition of all three of its products in the United States and
Canada.
Summary of Financial Results
Q1/2006 Q4/2005 Q3/2005
Revenues 1,222 2,145 1,127
EBITDA (1,063) (708) (620)
Net Loss (1,462) (1,254) (1,027)
Cash Used in Operations (399) (796) (2,784)
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“We continue to be very optimistic about 2006 and beyond and expect significant growth as all three of our
products gain momentum in the marketplace”, continued Raghu Kilambi.
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 March 31, 2006, are included in
the Company's 10-Q, which has been filed with the U.S. Securities and Exchange Commission.
Swiss Medica’s management will host a conference call on Monday, June 5, 2006 at 4:00 pm EST to discuss the
Company’s first quarter highlights and go forward strategy. The details for dial-in and webcast will be forthcoming
in a separate press release.
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™ 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 launched the patented O24 Fibromyalgia™ pain reliever (US Patent #6,444,238B1) over-the-
counter in North American retailers in the fall of 2005. The National Fibromyalgia Association (NFA) recently
awarded O24 Fibromyalgia™ their first NFA Seal of Approval. Upwards of 11 million Americans suffer from the
long-term pain associated with fibromyalgia. In a randomized double blind clinical trial, more than 90 per cent of
the patients who used O24 Fibromyalgia™ reported mild to markedly better improvement, versus only 7 per cent
who used the placebo. Customers can visit www.O24zone.com for information on O24 Fibromyalgia™ and to
order the product online.
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.
For more information, please contact:
Swiss Medica, Inc.
Investor Relations Contact:
David Jones
(866) 485-4243
djones@swissmedica.com
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