Pyng Medical Corp. Reports Second Quarter 2010 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2010) - Pyng Medical Corp. (TSX VENTURE: PYT) today reported its financial and operating results for the three months ended March 31, 2010. All amounts are in Canadian dollars.

The total sales for this quarter were $1,578,715, an increase of 14% compared to $1,385,177 for the same period of last fiscal year, which resulted from the greater shipments of products during this quarter. The gross margin was $1,075,565, up 11% compared to $972,948 for the same period of last fiscal year. Operating expenses for the three months ended March 31, 2010 rose to $1,350,593, a 22% increase from $1,110,875 for the same quarter of last fiscal year. The increase was primarily due to the increase in wages and benefits, professional fees, amortization on deferred product development costs, interest on convertible debenture and foreign exchange loss.

For the second quarter, the Company recorded net loss of $275,028, or loss $0.02 per share, compared to a net loss of $137,926, or loss $0.01 per share for the same quarter of last fiscal year. Earnings before interest, depreciation, amortization and taxes (“EBITDA”) from continuing operations were loss $52,397 for the quarter ended March 31, 2010, compared to EBITDA of $14,573 for the same period of last fiscal year. The increase in operating expenses contributed to the majority of the increases in net loss for this quarter.

As at March 31, 2010, the Company had a cash balance of $164,090 and working capital of $224,137, representing an increase of $11,559 in cash and a decrease of $430,469 in working capital compared to the year ended September 30, 2009. The Company generated a negative cash flow of $42,274 from operating activities in this quarter which was mainly due to the increased cash outflow on the operating expenses.

During this quarter, the Company received regulatory clearance from Health Canada and European CE Mark to market its new products FASTx and CRIC. As a result, FASTx and CRIC are ready for sale in Canada, Europe and other countries which accept these regulatory agency approvals.

Full audited financial results for fiscal year ended September 30, 2009 are available on SEDAR at www.sedar.com.

About Pyng Medical Corp.

Pyng Medical Corp. commercializes award-winning trauma and resuscitation products for front-line critical care personnel. Creators of the FAST1® Intraosseous Infusion System, Pyng’s expanded product portfolio includes a variety of innovative, lifesaving tools. With growing markets in North America, Europe and Asia, Pyng offers user-preferred medical devices for use by hospital staff, emergency medical services and military forces worldwide. Pyng has received the exclusive 2008 Medical Device Company of the Year Award from Life Sciences British Columbia for its sustained achievements in commercializing the Company’s proprietary FAST1®, the only medical device able to provide rapid sternal access for administering drugs and fluids to the heart in seconds. The Company was also selected in the “2007 TSX Venture 50" Top 10 companies in Life Sciences based on solid financial metrics for the year ending December 31, 2006.

Safe Harbour Statement; Forward-Looking Statements: This release may contain forward-looking statements based on management’s expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects”, “anticipates”, “plans”, “intends”, “projects”, “indicates”, and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents which may be filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as other USA Commissions, could cause results to differ materially from those stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.