Simulated Environment Concepts to Initiate a Plan Reducing Authorized Shares

MIAMI, July 21, 2011 (GLOBE NEWSWIRE) — Simulated Environment Concepts (Pink Sheets:SMEVNews), the manufacturer and developer of medical, aesthetic, weight loss, wellness, and slimming equipment, announced today that the company will seek to reduce its Authorized Shares by the month’s end.

Dr. Ella Frenkel, President, CEO and Co-Founder of Simulated Environment Concepts (SE Concepts) stated, “I am a vested shareholder just as many of our investors. Where there is market dilution, I hear about it from our shareholders. When there is a decrease in share value, it affects me personally as well, and where necessary action must be taken to override current perception, I will take the appropriate measures as circumstance permits and do so to the best of my ability. In this instance, we are responding to our shareholders and we are beginning to initiate a multiphase plan to reduce the current Authorized Share amount.”

Along with other items — such as the audit — reducing the authorized shares was one of the tasks to be addressed during the last shareholder conference call. Management indicates that while the intent is to bring the authorized share amount to the low 10 digits, this will have to be accomplished in phases. The reduction in Authorized Shares is yet another management promise coming to fruition.

Allen Licht, Chief Operating Officer of Simulated Environment Concepts (SE Concepts) stated, “As we are working through the data for the audit, we’ve been able to identify several reasonable methods of protecting company’s interest while also further securing the interest of fellow investors and shareholders. As we’re able to put those protections into place, we can continue reducing the authorized shares responsibly, one step at a time.”

People close to the company suggest that while the first reduction phase may drop the current authorized down from double digits to the high single digits, the anticipated second phase, which is likely to occur after the audit’s completion, could further reduce the Authorized Shares amount; perhaps considerably lower. There is also anticipation that if the company is successful in securing a significant investment from current suitors, not only will the company further reduce authorized shares, but it will also take measures to greatly strengthen corporate structure and prepare itself to acquire other similar business and/or patents.

Dr. Frenkel said that it was likely she’ll, “Make a personal concession to have the initial phase work.” This would seem to suggest that not only will the authorized shares be decreased, but Dr. Frenkel herself may reduce her own personal equity during this structuring as well.

Dr. Frenkel concluded, “While we cannot always satisfy every request of each individual shareholder, we do listen, and we encourage our fellow shareholders to be in communication with us through email, Facebook, Twitter and of course our corporate blog. We have one goal and that is to build a strong and profitable company. We will do this by producing and selling globally successful products like the SpaCapsule and consciously making decisions that we hope will continue to positively impact and strengthen shareholder value.”

Simulated Environment Concepts to Push Major Branding Initiative — T.V., Films, Music

MIAMI, July 20, 2011 (GLOBE NEWSWIRE) — Simulated Environment Concepts (Pink Sheets:SMEVNews), the manufacturer and developer of medical, aesthetic, weight loss, wellness, and slimming equipment, announced that the Company has begun planning for a major branding initiative to more aggressively market, promote and sell its flagship product, SpaCapsule, within the U.S. domestic markets.

“Our International market is continuously growing due to the distributorships we’ve successfully been able to develop and will continue to develop,” stated Allen Licht, Chief Operating Officer of Simulated Environment Concepts (SE Concepts). “However, with increasing interest domestically coming from physical therapy facilities, corporations offering ‘wellness’ centers and break rooms to employees, retailers, weight loss and fitness franchises, we want to do everything possible to assist our customers in educating users and driving traffic to their locations.”

Management indicates one area where the company’s new initiative will become most evident is in the form of product placement and celebrity endorsement. The company anticipates making a few major appearances on television, featured films, and music videos throughout the next year.

Mr. Licht concluded, “Given our schedule for certain ‘media rich’ year-end events, we expect everything to soon be in place to begin one of the most aggressive media pushes this company has yet to see.”

A Winning Report..

Grassroots Independent Research Report SMEV

On Monday, July 12, 2011, Cohen Independent Research issued their analyst report on our company Simulated Environment Concepts (we make the SpaCapsule) through its Grass Roots Research firm.   This of course was a tremendous day as once again the items we covered in our first shareholder conference call have once again come to fruition.  Not to mention, with a $0.29 price target, despite our still feeling undervalued, represents a potential win for our investors… especially the long-term supporters.

What we feel many investors don’t understand is the naturally inherent broad functionality of the SpaCapsusle.   You see… we’re not deliberately attempting to be all things to all people.  All we want to do is produce the best functioning medical device to act as a means to the overall good health and wellness of society.   It just so happens that a myriad of groups and industries have gravitated toward the SpaCapsule all on their own and for uniquely different reasons; inadvertently affording us the ability to essentially become “all things to all people.” This research report, in our opinion, may for the first time bring clarity to this.

Our potential reach and penetration is increasing constantly, but the report focused on:

The physical therapy market: A $10 billion dollar U.S. market.

Weight Loss: Where the treatment cost for obesity represents $147 billion dollars in domestic healthcare cost annually with well over 3,000 facilities dedicated to offering services for weight control.

Fitness centers: Accounting for nearly $15 billion dollars in domestic revenues with nearly 25,000 fitness centers across the country.

Massage Therapy:  An estimated $16 – $20 billion dollar industry in 2009; where franchises like Zen Massage Center and Massage Green have rapidly expanded to satisfy demand.

Franchise Market (massage Therapy):  Where massage therapy centers like Massage Envy have over 600 locations in 42 states with hundreds of millions of dollars in value.

The report also sheds light on a topic not normally discussed; company’s market sector.   While we’re not totally of the opinion we fall entirely into the Medical Appliances & Equipment Industry (a subsector of Healthcare), as the report suggest, it is not a bad title to carry.

SE Concepts, does in fact at this moment design, develop and manufacture aesthetic medical products.  According to this report, aesthetic medical products are normally produced by companies within the Medical Appliances & Equipment Industry… a $900+ billion dollar market.  We also seem to be in good company here with likes of Medtronic, Inc. and Edwards Lifesciences Corporation (trading on the NYSE) – sector competitors.   However, where the report really seems to drive this proposition home is in the discussion of our direct competition with Syneron Medical, LTD (NASDAQ: ELOS), makers of VelaShape™.

VelaShape™, a FDA cleared device that according to its website, effectively and safely contours, shapes and slims the body by reducing cellulite and firming problem areas in as little as 4 treatments, claims to be used by over 10,000 patients daily, Worldwide; aiding in Syneron Medical’s 52 week trading range of between roughly $7.00 and $15.00 per share and boasting a market cap of close to $500 million dollars.   This may very well be the clearest indication of where SE Concepts and the SpaCapsule could at the very least achieve.

At the end of the day, we’re very happy with what we have achieved and know very well the fullest potential of our company and the SpaCapsule.  With almost 900 capsules (an approximate $27,000,000 value) expected to be purchased over the next four years through our current distribution contracts, along with the three additional distributors we anticipate engaging, we strongly believe that our presence will be felt globally.   And as the Research Report leads us to reasonably conclude, with the various vertical markets accessible to us along with the sheer size of our addressable market place, even if we only managed to perform nominally, the potential to generate revenues in excess of $20,000,000 yearly appears to be all within the realm of possibility.

This research report was a win for us!

Grassroots Independent Research Report SMEV

SpaCapsule Now Used in Neuroxcel’s C.A.S.T. Program to Aid in Spinal Cord Injury and Stroke Rehabilitation

Medical Industry Continues to Embrace Simulated Environment Concepts’ Technology

MIAMI, July 12, 2011 /PRNewswire/ — Simulated Environment Concepts (Pink Sheets:SMEV.pkNews), the manufacturer and developer of medical, aesthetic, weight loss, wellness, and slimming equipment, announced today that its flagship product, the SpaCapsule, has been incorporated into Neuroxcel’s Comprehensive Activity-Based Strength Training program (C.A. S.T.) to assist with the rehabilitation of patients who have experienced Spinal Cord Injury (SCI), Strokes or other neurological disorders.

Dr. Ella Frenkel, President, CEO and Co-Founder of Simulated Environment Concepts (SE Concepts) stated, “This is just another testament to the dynamic properties of the SpaCapsule and the spectacular growth potential of our company.   For our technology to prove invaluable in such a tedious and sensitive therapy, speaks volume to the dedication our team has committed to the development of this product; ultimately for the overall health and well being of others.”

SE Concepts covered the particulars of this announcement yesterday in the late afternoon on its corporate blog (www.spacapsule.wordpress.com).   This announcement furthers management’s contention [in prior release] that they had seen a trending surge in the medical use of the SpaCapsule globally as more physicians and health professionals seem interested in incorporating the equipment into rehabilitation and other physical therapy practices.  Neuroxcel, a unique state-of-the-art strength training facility offering various levels of specialized neuro-recovery therapy to patients suffering from various forms of spinal cord injury, utilizes robotic gait strengthening, repetitive treadmill stepping, weight bearing, and among other things, the SpaCapsule – as part of the C.A.S.T. program.

Dr. Ilya Spivak, Marketing Director and Co-Founder of SE Concepts stated, “The continued embrace from the medical community further substantiates that a portion of our ultimate value will likely come from our being partially identified as a healthcare stock.   These types of companies are generally considered recession proof.  Which if we fell into this category, it could partly be the reason we’ve been in continued operation for over 10 years.  However, regardless of sector, there is no doubt in my mind that wherever in the world there is a person who has pain, wishes to lose weight or simply wants to relax, the SpaCapsule will soon be available at a location near them.”

The Medical Appliances & Equipment Industry (a segment of the healthcare industry), under which SE Concepts could be categorized, currently has a market cap of over $900 billion.   Yet, with all of the vertical markets the SpaCapsule enjoys (Physical Therapy, Weight Loss, Fitness, Massage Therapy Franchises, Corporate Relaxation, etc.), the potential of its sector classification would seem to be but a small part of SE Concepts’ bigger story.

Spinal Cord Injury + Stroke Recovery = SpaCapsule

The SpaCapsule is proving to be useful in so many areas of life.  Be it leisure, medical, weight loss, and/or relaxation, when it comes to total health and wellness, the SpaCapsule massage therapy system possesses the ergonomics (or Human Factors) designed to assist the human body’s healing process.

Let’s take Spinal Cord Injury (SCI) as an example.  Spinal Cord Injury (SCI) occurs when there is trauma to the spine.   This can be caused by an array of injuries that could arise from events such as car accidents, falls and neck impacts from sports such as football and, swimming, etc.   SCI can also be caused indirectly by such ailments as rheumatoid arthritis, osteoporosis and spinal stenosis.

These types of serious injuries and conditions can tremendously affect a person’s quality of life if not completely destroy it. SCI can result in the complete loss of movement, loss of sensory sensation, loss of bowel or bladder control, loss of sexual function, loss in respiratory control and bouts of uncontrollable painful stinging sensations throughout the body caused by damage to the nerve fibers.

So where does the SpaCapsule enter the picture?  Can the SpaCapsule aid in the treatment and reversal of SCI??   We say the answer is a resounding yes, and we are not the only one with this opinion, Neuroxcel seems to think it is very possible as well.

Neuroxcel is a unique and state-of-the-art strength training facility sought by people who have suffered spinal cord injuries, strokes and other neurological disorders.   With clients who come from all over the world, the Palm Beach facility maintains a waiting list as it receives a tremendous amount of traffic from patients hoping to use Neuroxcel’s system to optimize recovery from spinal and neurological problems.

Neuroxcel employs its C.A.S.T. Program (Comprehensive Activity-based Strength Training) as a means of offering various levels of neuro-recovery.   The C.A.S.T. model is based on building strength, independence and functionality through advanced neuro-recovery training within a single system at a single location.  C.A.S.T. incorporates robotic gait strengthening, repetitive treadmill stepping, weight bearing, etc..  and you guessed it, the SpaCapsule.

Within the C.A.S.T system, the SpaCapsule is very effective in addressing painful and stiff joints, muscle tension, muscle pain, muscle spasticity and poor circulation.  The atrophy fighting attributes of the SpaCapsule greatly assist Neuroxcel’s clients who have decreased mobility and an inability to exercise.  Keeping the body from atrophy due to immobility is crucial to recovery treatment; a primary function of the SpaCapsule within this program.

SCI was once considered completely irreversible.   However, many scientists are optimistic that advances in medical research will soon make total repair of SCI possible.   In the meantime, advanced methods in rehabilitation and physical therapy treatments have allowed sufferers of both stroke and SCI the ability to regain control of their bodies and their lives.  This is the power of the SpaCapsule.

Simulated Environment Concepts’ Research Report to be Released – Domestic Sales Force Established

Analyst Finalize Research Report for Week’s Release while SpaCapsule Manufacturer Sees Value Opportunity in Building Domestic Sales Force

MIAMI, July 5, 2011 /PRNewswire/ — Simulated Environment Concepts (SMEV.PK), the manufacturer and developer of medical, aesthetic, weight loss, wellness, and slimming equipment, announced today that the Company expects an analyst research report to be released within the next five business days.

Allen Licht, Chief Operating Officer of Simulated Environment Concepts (SE Concepts) stated, “We received word from Grass Roots Research that an analytical reporting on our company will likely be available for release within the week.   While we aspire to be on the ‘watch list’ of many financial analysts, this first report is the advent of serious analytical assessment of our great company as the completion of the SMEV audit is clearly eminent.  This report is just the first of many I’m sure, yet, it shall nonetheless prove very valuable to our current and prospective shareholders.”

Management believes this research report will not only provide additional transparency, but foreshadow what tremendous value the next two quarters may hold for SE Concepts; particularly after completion of the audit and anticipated up-listing.  Combine this with management’s reports of continuous sales increase and ongoing market expansion, growth opportunities may be endless.  This [growth opportunities] may certainly be reflected in the company’s decision to re-establish its domestic sales force.

Dr. Ilya Spivak, Marketing Director and Co-Founder of SE Concepts stated, “Initially, at the behest of our lead consultant, we focused our attention toward distributorships within the international market as a means to stabilize revenues and thwart the U.S. recession.  The unexpected growth fueled by this decision has not only opened us up to new sales opportunities globally but has rekindled domestic demand quite considerably.   Luckily, this domestic demand comes during a time where financing options for U.S. vendors and other interested domestic purchasers of the SpaCapsule, is becoming readily available once again as the economy strengthens.”

The company plans to immediately begin a cost effective domestic sales program employing completely independent sales associates.   Management indicates this method controls cost and will encourage sales reps to procure hefty purchase orders – possibly securing sales to big corporations such as Google, fitness franchises like Bally Fitness and professional athletic leagues such as the NHL.

Mr. Licht concluded, “As we reduce production cost, domestic sales of the SpaCapsule will help to substantially increase profitability.  With approximately 900 units contracted for purchase through our international distributorships, we are confident we can surpass that same twenty-seven million dollar revenue potential from international sales, domestically, within the next twenty-four months.”

With recent U.S. sales to announce, the company seems to be well on its way.

Just A Few Action Steps Remaining – Audit Update

Friends & Fellow Shareholders,

We believe we have entered into what should be the final phase of the audit. We also expect that much of the difficult items in prepping the audit may be done with.

For all of you who have never prepared and/or paid for an audit, this is a serious and expensive endeavor.  However, we are certainly more knowledgeable now about the public auditing process then when we initially offered a completion date timeline.  It goes without saying, while there is still a lot to learn and do, we are growing more comfortable with the hurdles that have to be jumped in order to complete this task.

Based on all of the new information in front of us, while the date timeline is now certainly pushed back, we feel much more comfortable in suggesting that barring the unforeseen, our audit can be completed either by the end of this third quarter or inside of October.

This is certainly not a date timeline we ourselves expected; nor is the mounting expense something we enjoy.  However, this is what needs to be done for greater shareholder value and investor confidence, and we are absolutely committed to seeing the task completed as best as humanly possible.

We are looking to make a transition on to the OTCQB asap.  So it goes without saying, we are certainly excited about completing this audit, up-listing and becoming the half a billion dollar (at the very least!!) company we believe we’re on the verge of becoming.

In the meantime, to make this all a reality, we’ll continue working for you all, selling more capsules, inking more deals, and opening up more markets; all things to discuss next week.

Have a great weekend!