MLTO Medirect Latino Inc (CE)

MEDirect Latino Inc. (OTC:MLTO) - http://www.medirectlatino.org -, the leading provider of direct-to-consumer Medicare reimbursed healthcare products to the Hispanic community, today announced record results for August 2005 in gross billings, new patient shipments, call volume and average opening orders. MEDirect Latino reports gross billings of $145,984 during the month, a 75% increase over July billings of $83,658. The Company realized gross product profit margins of 74% during the period, compared to 68% in July. During the month, the Company's media campaign produced patient intake call volume of 1,956 calls, an increase of 34% over July. Total patient orders for August numbered 1,150, which included 638 new patient shipments, and an additional 512 patients approved, but pending shipment for regulatory processing. MEDirect Latino expects to monetize its approved/on-hold patients in September, which is typical to the industry model. The Company's closing ratio during August was 58% of the total response rate from the media campaign. New patient shipments in August increased 110% over new patient shipments in July. Mr. Raymond Talarico, Co-Chairman and CEO of MEDirect Latino, in discussing the Company's August results stated: "We continue to show significant increases on a monthly basis in all areas of operations. This indicates that the Company's business model is proving extremely successful in Puerto Rico. Due in large part to these results, we expect our gross revenues to increase dramatically in conjunction with the scheduled launch of our national media campaign on the Telemundo broadcast television network. I expect that our national campaign may result in an increase over current results by 400% or better on a monthly basis, as we expand our reach into the national Hispanic healthcare marketplace. Our overall program in Puerto Rico has gained significant traction in recent weeks as evidenced by the 512 pending patient shipments. What I find even more exciting, is the fact that in the first six working days of September, we have already processed 714 new patient orders, which is more than we processed in the entire month of August. Based upon this present run rate, the Company will exceed 1,800 patient shipments in September; more than six times our patient shipments in July. The Company's results in the Puerto Rico market have greatly exceeded our expectations, and is tracking such, that present projections of $10,000,000 of gross revenues and $2,000,000 of operating profits, for our current fiscal year, may be achieved in Puerto Rico alone, without taking into consideration results from our national campaign roll out. Therefore, we are now in the process of substantially increasing our guidance for gross revenues and profits for our fiscal year ending June 30, 2006, which we will announce after the close of this quarter on September 30th." The Company also announces the introduction of additional product line extensions, supplemental to the needed diabetic testing products and services, through the offering of the Cara Smart Switch Heating Pad, designed to increase circulation for diabetic patients, and the Uplift Power Seat to increase mobility. Both products were offered beginning August 19th, and the Company sold 165 heating pads for $127 per order, and 95 chairlifts at $396 per order in the last 8 working days of the month. These two new product offerings, plus increased market penetration, assisted the Company in achieving a record average new patient order of $330, up 59% from the average of $207 per new customer order in July. Ms. Debra L. Towsley, President, MEDirect Latino, who directs strategic alliances and product development for the Company stated: "The Company's mission has always been two-fold: to become the leading provider of direct-to-consumer Medicare reimbursed healthcare products to the Hispanic community, while simultaneously achieving our goal of improving the quality of life of each of our customers. Many of these elderly individuals experience both circulation and mobility problems associated with their diabetic conditions, and have requested heating pads and devices to increase their agility. We targeted our product line expansion program based upon our customer's requests and our ongoing market research. The initial response to these types of product extensions have exceeded our expectations with 60% of our new orders including one or both products, along with their diabetic testing supplies. As we follow our plan to introduce a minimum of one new product or service to our customer base every 60 days, we will continue to increase our gross profit margins in both our average new customer order, and the recurring diabetic testing supply reorders, without having to increase our customer acquisition costs." The Company will continue to announce its monthly operational results during the first ten days of each succeeding month. 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) - http://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.