Wound Management Technologies President Writes Letter to Its Shareholders; Cites 3x Revenues Increase Over 2009; CellerateRX® Gaining Traction

FORT WORTH, Texas, April 20, 2011 /PRNewswire/ -- Wound Management Technologies, Inc., (OTCQB: WNDM | WNDM.PK) a leader in advanced wound care solutions, today released a letter from its president, Deborah Jenkins Hutchinson to update the shareholders on the current status of the company.

April 20, 2011

Dear Wound Management Technologies Shareholder,

I'm writing to inform you that our Company has entered an exciting new chapter in its development and to provide you with details on a number of initiatives that we believe will favorably impact our business in 2011.

When I joined Wound Management in January of 2010, my primary challenge was to develop a sales engine for our existing line of wound treatment products.  I am pleased to tell you that Wound Management Technologies' (WNDM) 2010 revenues were over three times 2009 revenues and that the commercialization plan that we initiated last year is gaining traction. Our CellerateRX® activated collagen wound care product line sales have increased both in the United States and international markets.  Furthermore, in January of this year we forecast $6M in revenues for 2011, an increase of over six times 2010, and we believe we will meet or exceed that number.  WNDM is now rapidly emerging and we believe that we will be both cash flow positive and profitable in the upcoming 12-18 months. You can find further details about our operational progress in the company's 2010 Form-10K filed on April 14, 2011.

One of our challenges in 2010 was to secure adequate financing for inventory to meet anticipated product order growth.  That process took a few months longer than we hoped, but we were able to raise the $2 - $3M that we discussed in last year’s letter in increments. We received inventory in the 4th Quarter and have ordered more since.  Those small financings and some business transactions have given us the ability to more aggressively market the CellerateRX® products.

CellerateRX® Activated Collagen™

CellerateRX® targets a multi-billion dollar domestic and international wound care market with over 60% profit margins. A large part of the growth in the wound care markets is from diabetic ulcers. The advanced wound care market is over $5B worldwide now and forecasts show that by 2025 just the Global Diabetic Market could have in excess of 48 million patients that could be a candidate for CellerateRX®.

CellerateRX®'s activated collagen (approximately 1/100th the size of native collagen) delivers the essential benefits of collagen to a wound immediately, where other forms of native, intact collagen in commercially available products require time for the body to prepare the collagen for use in the wound healing process.  In people with compromised health or circulation, the difference in wound healing can be significant. You can read through numerous evidence-based studies on the www.celleraterx.com website.

CellerateRX® is FDA cleared for all wound types except for 3rd degree burns and is available in both powder and gel form. The products have HCPC codes for reimbursement by Medicare and other insurers.  In addition to being used in healthcare settings throughout the country, CellerateRX® is easily applied by patients by themselves at home.  CellerateRX® is safe, non-toxic, and easy to use. Wound Care Innovations, LLC (WCI), a wholly owned subsidiary of WNDM, has the exclusive worldwide licensing and distribution rights for CellerateRX® advanced wound care collagen products.

New Product Pipeline

While we have been commercializing the CellerateRX® business we have also been strategically planning the market launch of products in our pipeline from our Resorbable Orthopedic Products (ROP) subsidiary and our Secure eHealth subsidiary.  ROP plans to file 510ks for resorbable bone wax and bone void filler products in the next few weeks. Secure eHealth and its secure healthcare communications tools were featured in the Interoperability Showcase at the Health Information Systems Society meeting in February 2011 in Orlando.  Look for more about both of these on our website and in our news.

Here is a brief recap of some key items over the past year:

Sales & Marketing Initiatives

• We created a channel map and identified major areas of sales opportunities from retail sales (since our products do not require a prescription), to hospital, health system, pharmacy, podiatry, surgeons, home care, wound care centers and international markets.  We have gained customers in all of those areas.
• We hired a Sr. VP of Sales & Marketing and hired a small direct sales team to grow customer awareness and sales
• Channel Partners: We announced a strategy to seek channel partners and major distributors. Just last week we announced a strategic channel partner, Juventas, who has certain exclusive rights to sell the CellerateRX® powder products in North America.  Juventas is an affiliate of Biomet Texas, Ltd., the largest Biomet Distributor. This multi-year agreement has escalating target sales with 2012's minimum sales of CellerateRX® powder set at $9 million in order for Juventas to retain such exclusive rights.
• Distributors: McKesson Pharmaceutical joined the growing list of CellerateRX® distributors in 2010, as did regional wholesalers Central Medical Systems, and Omni Medical Products.
• Major Healthcare Systems:  After an extensive formulary review, CellerateRX® was recently placed on formulary in a major national health care system. Look for upcoming news about this and other major healthcare system clients.
• Government: By December 2010 we had 10 VHA hospitals using CellerateRX® and in December 2010 we engaged Government Marketing and Procurement to assist us with procuring more VA hospitals and getting on their GSA schedule.
• Retail (TV/Internet): In 2010 we signed a distribution agreement with MED3TV for them to market CellerateRX® 28g gel via TV spots.  March 2011 the TV spot campaigns began to air and sales are escalating. You can preview the campaign on their website:  www.GetCellerateRX.com.   In March 2011, Riptide Software began marketing a trial size 6g gel tube of CellerateRX® via the Internet, mainly targeting first aid care.  You can view their campaign at www.MyCellerateRX.com.   Market awareness: In addition to sales, these programs are making more and more patients and providers aware of CellerateRX® and its unique capabilities.
• International:  After two plus years of work, in 2010, CellerateRX® received government approvals and reimbursement codes for sales in South Africa and sales are steadily building.  Other distribution began in The Bahamas and Central America. The CE mark for European distribution is closer to completion and our Italian distribution partner is poised to begin marketing.  Contract negotiations are underway in many other countries as well.
• PharmaTech International Joint Venture:  Our joint venture for sales within the Middle East stalled last year after an initial sale in Lebanon in February 2010. On April 7, 2011 we announced a new sale to Lebanon with more to quickly follow both there and throughout the region. PharmaTech International has been working diligently in the region to gain necessary government and health system approvals. Keep an eye out for more news in the upcoming weeks

WNDM in the Press

CellerateRX® is gaining respect in the medical community and in the press. You can learn about recent exposure on our websites and on our You Tube channels (just click the You Tube icon from www.wmgtech.com or www.celleraterx.com ). Among "new" news is:

• WFLA Florida, Channel 8 highlighted CellerateRX® in an evening news segment about wound care on February 28, 2011. You can watch it here:  http://www.celleraterx.com/trainingandvideos.htm
• Drug Topics Magazine highlighted CellerateRX® in the February 15, 2011 issue.

Investor Relations / News / Reports

Over the past year WNDM has spoken at numerous investment conferences and meetings to educate investors about WNDM and our growth. We have spoken at Undiscovered Equities Conferences, NIBA (the National Investment Banker's Association), LifeTech Capital's Miami Medical Investors Conference, OneMedForum, and the National Eagles and Angels Association (NEAA).  This has led to Independent Research reports about us – one from Mithra in the summer of 2010 and one from NEAA last week.

Upcoming

• Hear WNDM speak at the One Med Forum New York meeting on June 23rd. Details will be forth coming and our presentation will be available from a live webcast.
• Look for a new www.wmgtech.com corporate website in the next 30 days with extended content including more investor information.

Our 18 Month Value Growth Milestones – announced in January 2011

• Targeted to be cash flow positive and profitable
• US market rollout will include direct to consumer sales (TV and Internet), at least 3 major US healthcare systems, and substantial sales to US government agencies
• At least 2 major International Distributors will be actively selling products
• New Resorbable Bone Wax products will be approved and in the market
• Move to Nasdaq or AMEX exchange

Stay In Touch With Us

If you aren’t getting copies of our press releases, customer newsletters and corporate news events, opt-in on our websites for the mail list. You will automatically be notified when something major occurs and you can receive copies of the quarterly CellerateRX® Newsletter.

As you can see, a lot has happened in the past year. We have entered a new chapter in our history as we move towards profitability and growing market share.  More and more people know about WNDM and about CellerateRX®. The distribution and marketing channels in the US and internationally continue to expand because our products uniquely fill a need in the growing advanced wound care market.  At the same time, we are also working on our product pipeline initiatives to add enhanced value in the future.  We are focused on making Wound Management Technologies a strong healthcare company for our customers, our employees and our shareholders.

Respectfully,
Deborah Jenkins Hutchinson
President

About Wound Management Technologies, Inc.

Wound Management Technologies, Inc. is an emerging commercial stage company with its primary products in the $5B worldwide advanced wound care market. Wound Management's primary focus is the distribution of its unique, patented collagen product, CellerateRX®, which is FDA cleared and reimbursable under Medicare Part B. Wound Management has other advanced biotech products in development including a patented resorbable bone wax line that is in late stages of development, as well as a subsidiary focused on technology for secure healthcare data collaboration and storage.  More information can be found on the company's web sites: http://www.wmgtech.com and http://www.celleraterx.com.

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Safe Harbor Statement:

The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from new products in development and any other statements not constituting historical facts are "forward-looking statements," within the meaning of and subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, the ability to consummate and integrate acquisitions, and other risks, contingencies and uncertainties detailed in the Company's SEC filings, which could cause the company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.

For Wound Management Technologies Shareholder Information please call (917) 974-9872 or visit http://www.wmgtech.com

SOURCE Wound Management Technologies, Inc.