MLTO Medirect Latino Inc (CE)

MEDirect Latino Inc. (OTC:MLTO), http://www.medirectlatino.org, today announced its gross revenues have greatly exceeded its preliminary projections, with same period results up over 422% with its on-going focus on the Hispanic Medicare eligible diabetic consumer. "The results generated by the Company's aggressive acquisition of Hispanic Medicare customers continues to add tremendous value to the Company and places us squarely in-line to hit or exceed our target revenue projections for our fiscal year ending May 31, 2006 of over $10 million of gross revenues and $2,000,000 of net profits," stated, MEDirect Latino Inc., Co-Chairman and CEO, Mr. Raymond J. Talarico. "The expansion of our media campaign, coupled with our increased market share and the growth of the customer response rate, continues to validate the MEDirect Latino Medicare reimbursement model we are pioneering. We felt that the results achieved during the first few months of our expanded Puerto Rican launch were so significant that they required this interim update to our shareholders and the market." Added Mr. Talarico, "MEDirect continues to fulfill the critical link between the Hispanic Medicare community and their healthcare benefits, which have been under addressed prior to the formation of our company." On May 3, 2005, the Company announced it was expanding services to all of Puerto Rico's 78 municipalities. Results from the Company's increased media campaign through the Puerto Rico expansion include the following: New customers added during this period have increased an average of 135% monthly, since the expanded service campaign began. Combined growth of new customers for this period is 550%. The Company is currently adding over 500 of new customers per month from its expanded campaign in Puerto Rico, and expects significantly greater customer addition rates when its national campaign begins late this month. Each new customer will average $765.00 of new gross revenues to the Company over a twelve month period. Revenues continue to grow and are up during the same period an average of 42.6% monthly. Unaudited gross revenues from the expanded Puerto Rico campaign for the period ending July 31, 2005 were: $312,676.00. May 2005 revenue period was up 4.7% over April 2005, June 2005 revenue was up 57% over May 2005 and July 2005 revenue was up 67% over June 2005. From early results to date, the Company anticipates comparable percentage increases for August 2005. The revenue trend is indicative of the customer cycle associated with the Medicare reimbursable model. This cycle represents a revenue lag of 30 days from customer response to revenue, based on determination eligibility, and adherence to Medicare reimbursement procedures. Response rates for the Company's media campaign are achieving results 68% higher than projected. The average monthly increase of the customer response rate based on the Company's media campaign is 46%. May 2005 response rate was up 32% over April 2005, June 2005 response rate was up 42% over May 2005 and July 2005 response rate was up 62% over June 2005. The customer response rate represents a lagging indicator of potential revenue generated as a result of the media campaign, and the Company projects both response rates and revenues will continue to outpace its projections. After the close of the Company's first quarter, September 30, 2005 for the new fiscal year, the Company will announce actual results and revised projections for the second quarter and the remainder of the fiscal year. Management expects those projections to be significantly higher than originally anticipated. MEDirect Latino continues to apply proprietary algorithms and formulas, which it then blends with information received from the U.S. Department of the Treasury, U.S. Social Security Administration, U.S. Census Bureau and Centers for Disease Control and Prevention (CDC). This combined data, when integrated using the Company's algorithms, with published information from the Centers for Medicare & Medicaid (CMS), produces micro-demographic indicators, which pinpoints key target markets for aged Hispanic population centers. Testing of MEDirect Latino's proprietary algorithms has confirmed the Company's research, which has proven counter-intuitive to any known market studies on the aged Hispanic community. Stated MEDirect Latino Inc. COO, Mr. Charles W. Hansen, "Without the in-depth market knowledge developed as a result of our algorithms, other providers looking into this space will find it very difficult to navigate and achieve success." Closing, Mr. Hansen added, "The Hispanic consumer requires a provider, such as MEDirect Latino, to understand his or her needs and associated socio-economic considerations, and to direct not only our media campaign to these needs, but also our products and our customer support. MEDirect has spent considerable time and capital in understanding these issues, which is reflected in the results that we are releasing today." The management of the Company will discuss these results, its national launch and other key operating issues on a scheduled conference call today, Wednesday, August 10, 2005 at 4:15 PM Eastern Daylight Time. -0- *T Interested parties may hear the conference call by telephone. Instructions for hearing the conference call: To hear the conference call as it takes place: Call 1-800-434-1335 in the United States or Canada or; Call 1-404-920-6620 in the Atlanta Area or Internationally Pin Code: 078975 Exclusive: For Expedited Entry into the Conference: Please register via this link for your Direct Access 800 number. http://www.AccuConference.com/MLTO To hear a recording of the call (available immediately following the call by telephone for 30 days after the call takes place): Call 1-800-977-8002 in the United States or Canada or; Call 1-404-920-6650 in the Atlanta Area or Internationally Pin Code: Press the star key then 078975 *T Additional Company information may be obtained by reviewing a detailed analytical profile generated by small cap analyst, Mr. Gerald Kieft, President of Wall Street Resources, Inc. The 27-page report includes detailed information on the Company's business model, products, industry, valuation, management, and risks. The free report is available at: http://www.wallstreetresources.net/pdf/fc/MLTO.pdf About MEDirect Latino: MEDirect Latino (OTC:MLTO) (www.medirectlatino.org) is a rapidly growing, uniquely positioned provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community in the United States and Puerto Rico. MEDirect is the only company positioned to serve the U.S. Hispanic healthcare market as a direct-to-consumer Medicare provider on an authentically national level. The Company's current focus is the distribution of products for the treatment of Type II diabetes specifically because of its disproportionate impact and increasing diagnosis rate within the US Hispanic population, noting an incidence of 120% higher than among non-Hispanic whites. Type II diabetes was also targeted because of its unique status within the Medicare reimbursement regime and because of its high degree of correlation to other chronic conditions such as high blood pressure and heart disease. These other conditions represent considerable future market potential that will allow MEDirect to efficiently scale its model by leveraging its existing client base and infrastructure. The current Hispanic market for MEDirect's products is conservatively estimated at approximately $650MM in the continental United States. The size of the opportunity is understated by such figures as an estimated 925,000 of the over 3.1 million Hispanics in the United States over 65 eligible to receive Medicare benefits are currently collecting these benefits with an estimate that over 1.4 million of those Medicare-eligible Hispanics have diabetes (implying a potential continental U.S. market for MEDirect products of approximately $1 billion). Forward Looking Statements: Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; the Company will appropriately inform the public.