BOYNTON BEACH, Fla., Oct. 9, 2003 (PRIMEZONE) -- Harvey Grossman, President and Chief Strategic Officer of Jacobson Resonance Enterprises, Inc. (OTCBB:JRSE) announces today the Company's estimated European revenue projections for the years 2004 through 2008. We believe that the Company's estimated worldwide revenue projections for the years 2004 through 2008 will tap into a 200 billion dollar + market space. These projections are based on our rebuilt management team's current analysis of market trends. The projections flow from our newly identified target markets, reasonable time lines for execution, and a growing scientific and technology base. We believe that our business model for 2004 and 2005 is important as this acts as a launching pad for subsequent success.
Chronic pain has been said to be the most costly health problem in America and Europe. According to NewsRx.com, the American Pain Foundation, National Institute of Neurological Disorders and Stroke and the Bureau of National Affairs, approximately seventy (70) million Americans suffer from chronic pain from all causes. It costs America about $100 billion annually. These annual costs include forty (40) million doctor visits and five hundred and fifteen (515) million lost workdays. The statistical percentages for chronic pain sufferers in the European Union and associated nations (23 nations with 600,000,000 people) match the USA. Therefore, in Europe approximately 152,000,000 people suffer from chronic pain at an annual cost of about $218 billion annually.
Our goal at JRSE is to penetrate 3% to 5% of the European $200+ billion chronic pain market segment within ten years. (1)
The Leisure/Spa Industry provides an interesting and lucrative opportunity on a global basis (except in the USA) for Jacobson Resonance Technologies. A good deal of the services provided at leisure resorts, hotels, spas and cruise ships deal with relaxation and rejuvenation. As an illustration, according to the American Massage Therapy Association a total of 18% of the adult population in 2002 had a massage. Among people who had experienced severe back, neck or shoulder pain, the rate of massage therapy increased from 14.6% in 1996 to 19.4% in 1999. Among Fortune 200 companies, 14% offer massage as part of their employee benefit program. In the USA alone there are about 275,000 massage therapists who generate about five billion dollars in revenues annually. In Europe medical and rejuvenation spas dot the landscape and are often visited as part of vacation time. We estimate that massage therapy alone in Europe generates about $10 billion in revenues.
Throughout the world, using our patented Magnetic Resonance Therapy (MRT) in Institutional Review Board approved clinical research projects, and in clinical settings in Europe and Canada, thousands of people have reported profound and long-lasting relief from pain, whatever the cause. Many clients reported quality of life restored. Along with profound pain relief, the overwhelming majority of research subjects and clinical clients report a deep sense of relaxation, and as days passed, many felt rejuvenated. This relaxation market is open to JRSE throughout the world in the Spa/Leisure industry including the Caribbean, most likely in Europe and on the high seas.
Once again, the goal at JRSE is to penetrate 3% to 5% of this ten billion dollars (minimum, massage only as an example) relaxation and rejuvenation segment within ten years. (2)
JRSE Revenue Projections in US Dollars From Europe, 2004 - 2008
2004 2005 2006 2007 2008
(3) Europe 494,555 1,319,778 1,649,722 3,010,455 5,762,919
Breakout Of Worldwide Commercial Initiatives
The foundation for our projected commercial success in the first couple of years is based on worldwide initiatives (except in the USA) in pain management and the leisure/spa relaxation and rejuvenation arenas.
Europe is positioned to move forward and expand the applications of Jacobson Resonance. The CE-MARK has been granted for the reduction of pain for knee arthrosis. Patients in twenty-three hospitals in Spain and one in Portugal are being successfully treated with an efficacy rate of about 78%. This Magnetic Resonance Therapy (MRT) is the first of its kind approved in the European Union. Together with BioRes Medical, and JRSE's newly envisioned European management company, we plan on expanding throughout the European Union and associated countries during the next five years.
We are submitting a study to the health authorities in Spain for approval on the reduction of pain caused from cervical arthrosis. A study is being planned for the alleviation of lower back pain, and it is our hope that by the end of 2004 we will be able to treat the entire spine for the reduction of pain. It is further hoped that with additional studies in 2004/2005 that the treatment for full-body pain will be approved no later than the end of 2006. There may also be an opportunity to enter the leisure/spa arena using Jacobson Resonators for relaxation purposes in this ten billion dollar (massage therapy as example) European market segment.
It is also our desire to execute double blind randomized placebo controlled studies in Europe and in the USA for the amelioration of Alzheimer's disease in 2006/2007. The Alzheimer's Association estimates that four and one half million Americans (1% of the population at age 65 and 10% over 65) suffer from this devastating disease. Societal costs surrounding Alzheimer's are estimated by the Association to be at least 100 billion dollars annually in the USA. The percentage of afflicted is similar in the European Union and associated countries (23 countries and 600,000,000 people) with nearly nine million people affected. The cost for European society is estimated to be at least 200 billion dollars annually. If approved for treatment, revenues may modestly begin to flow in 2008.
Penetrating 3% to 5% of the Alzheimer's segment within ten years of approvals is JRSE's goal. (4)
JRSE is an emerging worldwide leader in magnetic resonance technology, whose main focus is the eradication of human suffering. The Company's technology base has the potential for multiple industry applications including the fields of medicine, spa and leisure arena, food and beverage, pharmaceuticals, energy and the environment.
(1), (2), (3), (4) Although we have set what we believe is a responsible goal there is no assurance that we will achieve this anticipated market penetration. We recognize that there is competition in this marketplace, and that to achieve our goal, we will need to establish significant revenue streams to avoid the need for additional funding, as well as FDA, EU and Health Canada clearances for certain applications of our resonator technology.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters covered by such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to differ materially from those contemplated or implied by such forward-looking statements. Included in these risks and other factors are funding availability, competition from better-financed companies and required regulatory clearances.