Swiss Medica Announces Record Third Quarter Results

TORONTO, Oct 19, 2005 (BUSINESS WIRE) -- Swiss Medica, Inc. (OTCBB:SWME) third quarter revenues for the three months ended September 30, 2005, revenues grew to a record US$1.77 million - an increase of more than 28 percent over the Company's second quarter revenues of US$1.38 million. Nine month 2005 revenues exceeded US$4.28 million, a 583%-percent increase over full year 2004 revenues.

"While we are pleased with the 28 percent quarter over quarter revenue growth, we are disappointed that our revenues were lower than previous guidance" said Chief Executive Officer, Raghu Kilambi. "Several US orders for O24 Fibromyalgia did not materialize prior to September 30th as previously expected, and Canadian regulatory delays did not allow Swiss Medica to launch PMS Escape and O24 Fibromyalgia in Canada in the third quarter. The good news is that in October to date, we have started to receive more US orders for O24 Fibromyalgia, and we now are able to sell O24 Fibromyalgia and PMS Escape in Canada."

Highlights in the Third Quarter included:

- Continued increased distribution for Swiss Medica's flagship O24 Pain Neutralizer. O24 Pain Neutralizer is now available in over 19,000 retail outlets in North America, including the top three drugstore chains in the United States and all major retailers in Canada.

- Swiss Medica launched PMS Escape in the United States and has distribution in over 5,000 pharmacy outlets. PMS Escape is the first patented, over-the-counter and clinically proven product to deal with the mood and appetite symptoms related to pre-menstrual syndrome. PMS Escape will be launched in Canada in the fourth quarter and will continue to get increased USA distribution.

- O24 Fibromyalgia continues to gain pre-retail excitement as the first clinically tested product specifically for Fibromyalgia. The National Fibromyalgia Association, based in California, has given O24 Fibromyalgia its first and only Seal of Approval. O24 Fibromyalgia will be available nationally in the United States and Canada during the fourth quarter of 2005.

"We continue to be optimistic about Swiss Medica's growth prospects given our three patented, clinically tested chronic ailment products will be available nationally in the United States and Canada during this fourth quarter ending December 31, 2005", said Mr. Kilambi. "However, due to delays in launching new products noted above and to be conservative, we are lowering our revenue guidance for 2005 and the fourth quarter ending December 31, 2005. For the three months ending December 31, 2005, Swiss Medica expects net revenues in excess of US$2 million. That would translate to fiscal 2005 revenues in excess of US$6.3 million. Despite the lower 2005 revenues, our strong gross margins should allow Swiss Medica to report positive EBITDA for the fourth quarter ending December 31st."

Swiss Medica defines EBITDA as earnings before interest and financing fees, taxes, depreciation, amortization, and other non-cash charges. Full second quarter results, for the period ending 30 September 2005, will be included in the Company's 10-Q, which will be filed with the U.S. Securities and Exchange Commission by November 15th.

About Swiss Medica, Inc.

Swiss Medica commercializes proprietary bioscience products that relieve chronic ailments. We increase our market share through focused distribution strategies in multiple sales channels. Swiss Medica's mission is to be a world leader in the commercialization of life enhancing bioscience products that improve quality of lives. Please visit our websites at , and

Swiss Medica's flagship product, the O24 Essential Oil Pain Neutralizer, holds US Patent #6,444,238B1. The O24 pain relief solution has been used, recommended and praised for its fast-acting and long-lasting benefits by healthcare professionals and athletes in the United States, Canada and in Europe. O24 is widely available throughout the United States and Canada in leading pharmacies and other retailers. Customers can also visit, for ordering details and store locators for the nearest pharmacy.

Swiss Medica is launching the patented O24 Fibromyalgia pain reliever (US Patent #6,444,238B1) over-the-counter in North American retailers in the fall of 2005. The National Fibromyalgia Association (NFA) recently awarded O24 Fibromyalgia their first NFA Seal of Approval. Upwards of 11 million Americans suffer from the long-term pain associated with fibromyalgia. In a randomized double blind clinical trial, more than 90 per cent of the patients who used O24 Fibromyalgia reported mild to markedly better improvement, versus only 7 per cent who used the placebo. Customers can visit for information on O24 Fibromyalgia and to order the product online.

Swiss Medica also manufactures PMS Escape(R) which holds US Patent #'s 5760014 and 5612320. PMS Escape(R) is a specially formulated group of carbohydrates, vitamins and minerals, clinically proven to reduce changes in mood and appetite that women experience during the premenstrual period. Customers can also visit: for additional information and ordering details.

Forward-looking statements in this news release are made pursuant to the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to international sales and purchases and potential foreign currency exchange fluctuations, continued acceptance of Swiss Medica's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Swiss Medica's periodic reports filed with the United States Securities and Exchange Commission and other regulatory authorities.

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