POMPANO BEACH, Fla., June 28, 2006 (PRIMEZONE) -- MEDirect Latino Inc. (Pink Sheets:MLTO) (www.medirectlatino.org), the first national provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community, today announced that based on preliminary review of its May 2006 results, the Company expects to achieve its first month of profitability. The Company has registered it first profitable month during the period ending in May 2006, recording $34,441 of profit on revenue of $1,294,852.
Ms. Debra Towsley, President/CEO, stated, "During the initial stages of our national advertising campaign, we made the deliberate decision to invest heavily in the business, in order to expand our capabilities, enhance our infrastructure and add key personnel to quickly attack the sizeable market opportunities we had identified. As a result of these initiatives, we are generating very strong month over month growth and are surpassing our fixed cost threshold three months ahead of schedule. Profitability is an important milestone for the Company, and we will continue to focus our efforts on minimizing costs and maximizing profits, while we continue our program of aggressive customer acquisitions, which our much larger facility further allows us to accomplish. We have all the right pieces in place to continue our strong double-digit revenue growth and margin expansion through 2006 and beyond. Management will continue to apply our proprietary knowledge of the Medicare eligible Hispanic customer and their needs, as we continue to carve out market share."
MEDirect Latino also announced today that founding shareholders, Ms. Debra Towsley, President/CEO and Mr. Raymond Talarico, EVP/Co-Chairman, have rescinded their original management/consulting agreements with the Company effective immediately. Mr. Raymond Talarico, stated, "We have been sensitive to those agreements for some time, and based upon input from our shareholders and board of directors, Ms. Towsley and I felt it was important to rescind those agreements and directly align our interests with our shareholders. Originally, these agreements were designed for a start-up business with an unproven future, and an inability to pay current compensation commensurate with our management positions. Now that MEDirect Latino is reaching maturity and profitability, those agreements are outdated. We believe in the value of our stock and we have a vested interest in maximizing the share price for all shareholders. Any future compensation plan for management, which may be considered by the board of directors of the Company, will be structured along industry lines and provide the proper incentive for management to perform at the highest level in order to create maximum value for all shareholders."
ABOUT MEDIRECT LATINO:
MEDirect Latino (Pink Sheets:MLTO) (www.medirectlatino.org) is the first national provider of direct-to-consumer Medicare reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community. MEDirect Latino is rapidly growing and uniquely positioned to service the Hispanic community in the United States and Puerto Rico. MEDirect is the only company currently positioned to serve the U.S. Hispanic healthcare market as a direct-to-consumer Medicare provider on an authentically national level. Type II diabetes was targeted because of its unique status within the Medicare reimbursement regime and due to its high degree of correlation to other chronic conditions such as high blood pressure and heart disease. These and other conditions represent considerable future market potential, MEDirect will scale its model by leveraging its existing client base and infrastructure in introducing new products and services to existing customers as they are identified.
The MEDirect Latino Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1873
Safe Harbor Disclosure:
This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.