Simulated Environment Concepts’ Current Contracts Boost Revenue Potential to an Estimated $15,000,000

Global Sales Increase; Manufacturing Cost Projected to Decrease; Company Intends to Engage Independent Research Analyst

MIAMI–(BUSINESS WIRE)– Simulated Environment Concepts (PINK – News), the manufacturer and developer of medical, aesthetic and wellness equipment, announced today that the Company will engage a research analyst to conduct and prepare independent research reports; offering greater transparency to shareholders while demonstrating what management believes is the Company’s unrealized value in light of the fact current contracts have an estimated value as high as $15mm.

“We believe that our Company is substantially undervalued when compared to our current and growing operations,” stated Dr. Ella Frenkel, President & CEO of Simulated Environment Concepts, Inc. (SE Concepts). “SE Concepts is approaching its 11 year anniversary, but in the past 15 months, we’ve made significant progress. We’ve secured short term financing, improved our business model, established multi-million dollar – multi-year international distribution contracts, reduced sales related expenses and have begun to employ a cost reduction strategy in manufacturing.”

Currently ahead of 2010 sales projections, SE Concepts continues to grow as a leading provider of the medical grade high pressurized dry water massage therapy system; SpaCapsule. Currently used in 37 countries around the world, the Company believes it is on track to see substantial growth in the upcoming year with the SpaCapsule’s weight-loss and medicinal attributes leading the way to increased sales.

“We’ve been consistent, usually generating average annual revenues of between $1.8mm and $2.2mm,” stated Dr. Ilya Spivak, Marketing Director of SE Concepts and Co-Inventor of the SpaCapsule. “However, this year has been remarkable. Strengthening our sales model has allowed us to secure close to 600 units in manufacturing and distribution contracts,” – a total estimated value of between $12,000,000 and $15,000,000; to be satisfied within 4 years. “Not only are we ahead of the projected sales schedule for this year, we intend to engage an additional distributor by year end.”

Typically, commanding a retail price as much as $30k capsule, in years past, SE Concepts averaged 80 units yearly – approximately $2,400,000 per year. If based solely on current distribution contracts, the projected minimum sales of 120 units per year, over the next four to five years, is estimated to potentially produce revenues of between $3mm and $3.75mm per year – up nearly a 78% increase over the 10 year revenue average. This projected sales increase, along with the Company’s plan to substantially decrease manufacturing costs, may contribute to a possible increase in profitability of nearly 50% per unit. Investments focused on increasing manufacturing capacity and decreasing production costs have already begun. The company is actively deploying its plan to accomplish this along with a look at expanding its weight-loss and physical therapy markets.

“In seeking FDA registration, receiving excellent results of the Dermscan Group’s study, being featured on such shows as CBS’s ‘The Doctors’, Good Morning America, and recent introduction into various fitness programs like the BodySmart program and LadyFitness Europe, has significantly increased our exposure and broadened our markets,” stated Dr. Frenkel. “We believe that an independent research report will provide further confirmation to the markets of our viability, both as a product and an investment opportunity. As always, we will continue to work diligently in an effort to deliver greater shareholder value in the coming fiscal quarters.”


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