POMPANO BEACH, Fla., Oct. 17, 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, announced today that its Board of Directors has decided to begin a process to explore strategic alternatives to enhance shareholder value in the immediate and med-term time horizon. Management of the Company intends to present the value enhancement program to the board of directors at a specially called meeting to be held by the end of the month. Such alternatives under consideration include, but are not limited to, the raising of capital for media expansion through the sale of securities of the Company, strategic acquisitions, and sale or merger of the Company with another entity. The likelihood is that the ultimate approved plan will encompass a combination of the foregoing. The Company is interviewing several investment banking houses to act as its exclusive financial advisor in this process, and should announce the selection of such investment banking firm in the near future.
In making the announcement, MEDirect Latino Inc. stated that there can be no assurance that the exploration of strategic alternatives will result in a transaction or transactions. The Company does not intend to disclose developments with respect to the exploration of strategic alternatives unless and until its Board of Directors has approved a specific transaction or transactions.
Debra Towsley, President and CEO of MEDirect Latino in discussing this announcement stated: "Because of our rapid growth and leading position in our industry, we have received unsolicited offers of financing, acquisitions, strategic relationships and possible sale of all or a substantial portion of the company. Until recently, we have been focused on our expansion and maximizing our position in the marketplace, while making sure that our customers received the best service in the industry. However, with our listing on the Bulletin Board now pending, and an application to be listed on the NASDAQ in the works, we feel that it is now time to consider all of our options. We have told our shareholders that at the appropriate time that we would entertain all options to enhance the value of their shares. Management believes that time has now arrived, and we are committed to hiring a leading investment banking firm to guide us through this process."
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.