American Scientific Resources, Inc. Issues Corporate Update

WESTON, Fla., May 25 /PRNewswire/ -- American Scientific Resources, Inc. (the "Company" or "ASR") (Pink Sheets: ASFX) announces the following update in the affairs of the Company.

Introduction

This update is being provided by ASR to address the many inquiries received, and to also give some detail on the Company's development and growth. ASR also plans on updating the public continually with monthly updates.

ASR continues to implement its business plan and improve on a number of initiatives and procedures including already announced projects, new initiatives and products and creating a better position with regard to financials, procedures, accounting and many other areas.  

Numerous previously announced projects are progressing well.

Communication has improved with the Company's valued shareholders through improved Investor Relations and the soon to be released upgraded Investor Relations section of the corporate website. ASR has also taken steps to become even more transparent, specifically by making the recent Annual Report available on Pink Sheets.  As always, the Company urges all shareholders to regularly visit the corporate website or view the filings on Pink Sheets.

Achievement highlights over the past year include:

• Financial improvement, and an increase in shareholder value
• The settlement or dismissal of legal actions
• The removal of the Caveat Emptor designation by Pink Sheets
• Fully current on all financial reporting
• All financial reporting and audits are up to date, and 2009 audits are complete
• New thermometer conception-to-production occurred within 6 months
• New Investor Relations firm
• New Board Members
• Operating under the ISO9001/13485 Directive of Quality Systems Manual and Good Manufacturing Practices to become fully approved FDA manufacturing facility
• New FDA approved products owned by the Company.  Food and Drug Administration approval is being sought for new products.
• Significant private label thermometer and Disintegrator deals near completion
• New and exclusive distribution deals signed for other products
• Worldwide distribution agreements for multiple products executed
• Worldwide advances in legislation and awareness supporting the Needle Destruction Device (NDD)
• Significant media uptake on Company products

Both the new non-contact thermometer and Disintegrator production runs are on schedule for delivery to satisfy existing contracts with others in the pipeline.

2009 Results, Discussion and Comment

With the expansion of the management team and the implementation of the Company's restructuring and growth plan beginning in June 2009, substantial progress has been made; this work is reflected in the significant increase in traded market value of the Company's stock over the past 9 months.

• Assets are up due to the purchase of the Disintegrator patent
• Liabilities were  $4,103,000 for the year ended December 31, 2008 and $3,500,000 for the year ended December 31, 2009, a reduction of  $603,000. Current liabilities are down, including reductions of certain debt obligations.
• ASR is designated on Pink Sheets as having "current information".  All of the audited financial statements are up to date and filed with the SEC along with other required disclosures.

Conception to Consumer

The process in taking a product conception to the retail shelves is quite an enormous undertaking.  From design, to prototype, to tooling, to first articles to global distribution, ASR was able to complete this normally lengthy process for their new thermometer within the condensed time of 6 months in order to make it available for the 2010/2011 Cold/Flu season.

Since the Company decided to not just be a distributor, but also a manufacturer of medical devices, they have not only been operating under the ISO9001/13485 Directive of Quality Systems Manual and Good Manufacturing Practices, but ASR is preparing for an FDA audit as well as an ISO audit.  Upon the successful completion of these audits, ASR would be a fully accredited manufacturer of medical devices.

Disintegrator Update

ASR is excited about satisfying the demand for the FDA approved Disintegrator and Disintegrator Plus. Ongoing sales are targeted both in the United States and overseas.

Manufacturing is well underway, and an announcement on developments and contracts will be out shortly.

During the first quarter of 2010, the Company received a follow on order from Bayer Sante.  Additional orders are anticipated. Production of these customized units is well underway with delivery scheduled. Bayer Healthcare is one of the world's leading pharmaceutical companies, and utilizes the Disintegrator by providing it to patients who administer its Betaferon medication by injection. Disintegrator units are manufactured with Bayer Healthcare specific colors and logos, and are currently in daily use in France.

Jason Roth, ASR's Senior Vice President, commented, "Bayer Healthcare represents a world class partner for American Scientific.  We are pleased to continue with the Bayer contract, and look forward to the additional stages of the contract as well as our continued relationship with them and with other customers and users worldwide."

In addition to the Bayer Healthcare Disintegrator and the Disintegrator Plus, the Company is developing a Non Government Organization (NGO) version, designed to be taken up globally by aid providers operating in areas where injections and immunizations are key in the fight against disease. The Disintegrator NGO provides foundations and aid organizations a cost effective way of destroying harmful needles at the point of use in developing countries worldwide. The Company is working on this project with its partners in manufacturing and front line aid providers.

According to the World Health Organization (WHO), it is estimated that globally 16 Billion injections are administered annually in developing and transitional countries alone. They also indicate that each year unsafe injections cause an estimated 1.3 million early deaths, a loss of 26 million years of life and an annual burden of $535 million USD in direct medical costs.

The Disintegrator is an exciting member of the product family at American Scientific, both with the home use Disintegrator Plus and the new NGO version. Both are designed to solve a global health issue that threatens the lives of millions of people - patients, healthcare professionals, aid workers as well as the general public - every year.

Disintegrator photo and more information can be found on www.disintegratorplus.com.  

Thermometer Update

On May 10, 2010, ASR released an updated statement on how they increased production of its new line of affordable, revolutionary 5-in-1 non-contact thermometers to allow for various distribution channels to take full advantage of ASR's production capabilities.

The Company's new 5-in-1 non-contact thermometer provides a hygienic, trauma free and accurate temperature reading for the user and patient at a very competitive price. Through education and awareness, ASR aims to finally change the way the world takes a temperature.

Photo here: http://www.newscom.com/cgi-bin/pub/s?f=NCOM/prn&p1=20100507/NY01332&view=thumbnail_grid

Mebby Update

ASR placed an order with Medel Inc., (Mebby manufacturer), and is awaiting delivery of this first order. ASR is not currently selling these products, but expects to sell online in the coming months.  

Mebby has an entire line of health and safety products designed to make child care much easier. For example, the breast-pump uses patented technology that provides a comfortable sucking-motion on a woman's breast, while at the same time reducing the fatigue of the mother. Also, for greater pump capacity, a duo-pump can pump both breasts at the same time in order to save time. Both pumps come with a convenient, stylish thermal bag with hot and cold packets. Additionally, the Mebby video baby monitor enables a parent to see a real-time image of their child day or night (with infrared technology).

To help with the sales and marketing of this new line of products, initial sales are being sought after in the southern California region, and ASR will be attending the ABC show in October 2010. Visit www.mebby.com to learn more about the line of products.

Corporate Website

ASR is working to improve the corporate website at the moment, and will have an updated Investor Relations section. The Company is also going to add sections, which will showcase product developments, new projects and news and events of interest worldwide relating to their products. For example, a "What's New" section will contain exciting insights into products coming to market.

The Company will announce shortly when it is completed, and all shareholders are encouraged to visit it regularly.

Upcoming PR

The Company was recently pleased to announce a substantial follow on Disintegrator order from Bayer Healthcare and, also anticipates further announcements shortly regarding additional Disintegrator orders and orders for the new thermometer.

Closing Comments

Dr. Christopher F. Tirotta, CEO/Chairman, stated, "We have had substantial challenges over the past years, but we look forward to improved results coming from the development and marketing of new products. Our restructuring and growth plan has yielded considerable positive developments over the past 9 months."

A lot of hard work lies ahead for ASR, yet the Company has taken many giant steps forward, and continues to move in a positive direction.

ASR urges shareholders who would like to be on the Company’s Investor E-mail List in order to receive all ASR updates to please e-mail [email protected].

About American Scientific Resources, Inc.

American Scientific Resources, Inc. is both an operating company and the holding company for wholly owned subsidiary, Kidz-Med. The Company sources and designs innovative health and safety products, develops intellectual property and distributes through established relationships and channels both in-house and through its ever growing network of proven global healthcare distributors.  For more information, visit the corporate web site at www.americansci.com and the Company's subsidiary Kidz-Med at www.kidzmed.com.

Safe Harbor

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.

SOURCE American Scientific Resources, Inc.