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Simulated Environment Conceptsa? Current Contracts Boost Revenue Potential to an Estimated $15,000,000

^{Published on 2010-12-07 16:01:25 - Market Wire}
 

MIAMI--([ BUSINESS WIRE ])--[ Simulated Environment Concepts ] (PINK SHEETS: SMEV), 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 Companya™s unrealized value in light of the fact current contracts have an estimated value as high as $15mm.

"Not only are we ahead of the projected sales schedule for this year, we intend to engage an additional distributor by year end."

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

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 SpaCapsulea™s weight-loss and medicinal attributes leading the way to increased sales.

aWea™ve been consistent, usually generating average annual revenues of between $1.8mm and $2.2mm,a stated [ Dr. Ilya Spivak ], Marketing Director of SE Concepts and Co-Inventor of the SpaCapsule. aHowever, this year has been remarkable. Strengthening our sales model has allowed us to secure close to 600 units in manufacturing and distribution contracts,a a" a total estimated value of between $12,000,000 and $15,000,000; to be satisfied within 4 years. aNot only are we ahead of the projected sales schedule for this year, we intend to engage an additional distributor by year end.a

Typically, commanding a retail price as much as $30k capsule, in years past, SE Concepts averaged 80 units yearly a" 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 a" up nearly a 78% increase over the 10 year revenue average. This projected sales increase, along with the Companya™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.

aIn seeking [ FDA registration ], receiving excellent results of the [ Dermscan Groupa™s ][ study ], being featured on such shows as [ CBSa™s aThe Doctorsa™ ], 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,a stated Dr. Frenkel. aWe 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.a

About Simulated Environment Concepts, Inc.

Simulated Environment Concepts, Inc. (SE Concepts) (SYMBOL: SMEV) is an industry leading manufacturer and developer of cutting edge medical, health and wellness equipment.

SE Concepts was established in 2000 by doctors dedicated to advancements in medical technology and aesthetics. Its flagship product, SpaCapsule®, which is currently distributed in over 37 countries, is a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, cellulite management and general wellness.

For more information on SE Concepts, SpaCapsule®, PTjetCapsulea" and Celude Laboratoriesa" products you can visit the Company's product website at[ www.spacapsule.com ], the corporate website at [ www.seccorporation.com ], the corporate blog at [ http://www.spacapsule.wordpress.com ], facebook at [ http://www.facebook.com/SpaCapsule ] or request more information via email at[ ir@spacapsule.com ], or call at (888) 757-0797 or (305) 651-9200.

Safe Harbor

Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.

SpaCapsule is a registered trademark of Simulated Environment Concepts, Inc.