VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- November 20, 2006 -- Meridian Co., Ltd. (“Meridian” or the “Company”) (OTCBB: MRDAF) an industry leader in the research/development, manufacturing and sales of integrative medical diagnostic equipment, is pleased to announce that its exclusive North American distributor, British Columbia, Canada-based Meridian Medical Inc. (“MMI”), has entered into the Letter of Intent referred to in the Company’s press release dated October 2, 2006.
The Letter of Intent outlines the framework for the execution of a definitive contract with a subcontractor under a US federal government prime contract to supply the Company’s Digital Pulse Analyzer (“DPA”) (and related training and other services) over a five year term. Based on sales projections from the prime contractor, the Company expects product revenues of between $24,800,000 USD and $28,000,000 USD, depending on volume discounting variables. After payment of agency fees to MMI, the Company will be entitled to approximately 90% of revenues from unit sales, resulting in potential revenues to the Company during the five year term of the contract of between $22,320,000 USD and $25,200,000USD. The contract details to be finalized include the implementation and execution of training, servicing, and U.S./Korean manufacturing plans. The contract has additional features and benefits which will require further negotiation, but all parties are eager to move ahead to finalize the deal. A meeting involving the prime contractor, the subcontractor and the U.S. Department of Defense is scheduled in the near term to determine payment terms and a delivery schedule for the DPA units to be supplied under the prime contract.
The Company anticipates execution of a definitive contract within 30 days.
The Digital Pulse Analyzers purchased by the subcontractor will be used to provide cardiovascular testing services to military and other US federal government personnel.
“We at Meridian are very excited about the potential of this opportunity,” commented Mr. Hyeon Seong Myeong, President of Meridian. “It will give us a much larger pool of research data which we can use to refine our product and ultimately improve its effectiveness in assisting health care practitioners in the diagnosis and treatment of cardiovascular disease, in addition to the obvious financial benefits resulting from dramatically increased revenues.”
The October 2, 2006 news release concerning final negotiations is hereby amended by the information contained in this press release. In particular, the two year term referred to in the October 2, 2006 press release is now a five year term. The Company intends to update this news release with information on purchase orders under the anticipated definitive contract, to give investors a better sense, from time to time, of when the Company expects to realize revenues.
More About: Digital Pulse Analyzer (“DPA”)
The DPA accurately measures the elasticity of small and large arteries and provides health care practitioners with critical information regarding arterial aging. This FDA-approved device is inexpensive, non-invasive, and can provide results in minutes. Accumulating evidence suggests that abnormalities in the pulsatile characteristics of arteries occur early in the disease process associated with increased cardiovascular risk, and can be favorably modified by therapeutic interventions.
The Company feels that use of the DPA can help caregivers reduce cardiovascular disease in their patient populations through early detection and prevention, and ultimately assist to decrease the associated financial costs placed on the health care industry. Cardiovascular disease is the number one killer in the United States with an estimated economic cost of approximately $298 billion.
More About: Meridian
Meridian is an established leader in the research/development, manufacturing and sales of integrative medical equipment. The Company sells its products and equipment to a wide range of customers in the global health care industry. The Company presently holds a total of 18 worldwide patents on its technology, and has received FDA approval, as well as other international regulatory approvals, for many of its products.
On Behalf of the Board of Directors, Hyeon Seong Myeong President
This press release may contain certain forward-looking information and statements concerning the company’s operations, performance and financial condition. These statements are based upon a number of uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. This document is not intended to be and is not an advertisement for any securities of the Company.
Contacts: Meridian Co., Ltd. Peter Holeczek Corporate Communications 1-866-736-3306
SOURCE: Meridian Co., Ltd.
