ferrets stock to watch: medec limited

Ferret's Stock to Watch: MEDEC LIMITED
09:20, Wednesday, 8 November 2006

LOCAL COMPANY SPREADS ENERGY MEDICINE AROUND THE GLOBE

Sydney - Wednesday - November 8: (RWE Aust Business News)
*********************************************************

OVERVIEW
********

Shares of Medec Ltd ASX:MAA) rose strongly yesterday after the
company announced a record revenue of $4.4 million in the September
quarter.

The company attributed the surprise result to integration and
consolidation of subsidiaries acquired in July that had progressed faster
than expected.
Medec expects the integration of the Medec Health and Vitality
concept into the client service and sales program of the new subsidiaries
will continue strongly in the October-to-December period and it forecasts
50 centres will offer the concept by December 31.

The company now expects revenue to increase to between $19
million and $20 million in the 2007 year with sales revenue of Medec core
products to rise from $3 million in the 2006 year to $4.5 million in
2007.

Medec is spending $1 million on the fast integration of the new
subsidiaries and for improved marketing of its products, which will
temporarily affect profitability, but lay the foundation for further
growth in the 2008 to 2010 years.

At the end of the 2005 financial year Medec finalised most of the
research and development started in 2002 and funded by the IPO
proceeds.

The priority for the 2006 financial year therefore was to
establish a strong company-owned franchise distribution system.

In July 2005 Medec employed a new CEO and management team with
experience in marketing and sales.

The first half of the 2006 financial year was, however, affected
by this change in management.

The new team found it difficult to finalise the acquisition
projects and reach the growth targets.

Growth in revenue stopped during the year and costs increased.

When the targets were not reached by February the board asked
Josef Plattner to once again take the responsibility as the CEO for the
company.

While the 2006 result remained disappointing to the board, good
progress has been made since February to achieve the targets in the 2007
year and growth of the Medec group is back on track.

Solid growth of revenue is now once again expected for the 2007
year.

SHARE PRICE MOVEMENTS
*********************

Shares of Medec yesterday jumped 18c to 35.5c. Rolling high for
the year is 55c and low 16c. The company has 72.12 million shares on
issue with a market capital of $25.6 million.

Medec is leading in the development and growth of Energy
Medicine, one of the most exciting, newly emerging sections of medical
technology.

On an international level, Medec provides equipment and services
to measure, assess, stimulate and monitor the energy of the human body.

The core business of MEDEC is the development and sale of
advanced electronic products and systems for use in the field of health
care and energy medicine.

The products are based on a combination of scientific western,
traditional Chinese and complementary medical systems.

The Medec range of products includes the Medec Biograph, a
high-technology diagnostic system.

It has many applications in the early diagnosis and prevention of
disease, in energy monitoring and therapy control.

The Medec Bioresonance System stimulates the complete organism
inductively and regulates acupuncture points and meridians.

It is designed for private use at home, but it is also
increasingly used and supported by doctors, medical institutions and
high-profile professional athletes.

BACKGROUND
**********

Medec is Australian based and was established in May 2002 to
consolidate several developing health care equipment interests into a
viable international business.

Following the initial public offering, official quotation of the
company's securities began on the Australian Stock Exchange in October
2003.

The Medec group of companies has several product ranges,
including the award-winning Athlegen brand, which is Australia's market
leader in treatment tables for the wellness and health industry and the
innovative Medec energy medicine products.

Medec has manufacturing facilities in Australia, Germany and
China and operates showrooms in all Australian states and in Germany.

It has an active market-orientated research and development
department which continues to commercialise and deliver new marketable
products.

The company has grown rapidly and has acquired several
international franchise companies for the distribution of the health &
vitality concept.

Medec is expected to grow substantially in the 2007 financial
year.

The Medec technology has its origins in Germany and Austria. The
founders of Medec emigrated to Australia from Germany at the end of 1997,
transferring the business, intellectual property, products and marketing
expertise to Perth.

The company can draw on 10 years of experience with high-tech
electronic therapy and diagnostic systems that have been exceptionally
successful in the European market.

The vision of the company is to create, develop and implement a
new corporate concept of complementary health care through the
application of modern research and the development of the fundamental
philosophy of energy medicine.

The alternative health and wellness market is one of the fastest
growing industries worldwide and Medec is well positioned to benefit from
this market development.

Medec today has a unique product range, an experienced team of
managers, marketing experts, engineers, a medical support group with the
highest international reputation and an extensive international network
of business partners.

The company is established in five continents (Europe, Asia,
Africa, North America and Australia) with an extensive network of
subsidiaries, distributors and consultants in over 20 countries.

ENDS

Copyright © 2006 RWE Australian Business News. All rights reserved.