SYDNEY, Australia--(BUSINESS WIRE)--July 27, 2006--The Board of Directors of Advanced Medical Institute Inc. (Pink Sheets:AVMD - News) announced today that the Company’s indirect wholly owned subsidiary, Intelligent Medical Technologies Pty Limited (IMT) has terminated its license agreement with Sheiman Ultrasonic Research Foundation Pty Limited (SURF), related to the use of certain ultrasonic nebulizer technologies. The termination was effected as a result of SURF’s failure to deliver to AVMD information concerning updates and advances on the technologies. The termination does not affect AVMD’s rights to use the technology -- the only effect is to terminate the royalty payment obligations under the license. Additionally, IMT has exercised its option under the agreement to take the worldwide right and license to use the nebulizer technology in the treatment of prostate diseases. AVMD was entitled to exercise the option without the payment of any additional funds to SURF.
