BOYNTON BEACH, Fla., Oct. 10, 2003 (PRIMEZONE) -- Harvey Grossman, President and Chief Strategic Officer of Jacobson Resonance Enterprises, Inc. (OTCBB:JRSE) announces today the Company's estimated USA revenue projections for the years 2005 through 2008. We believe the Company's estimated worldwide revenue projections for the years 2004 through 2008 will tap into a multi-billion dollar market space and actually begin to flow in the USA in 2005. 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.
JRSE Revenue Projections From The USA, 2004 - 2008
2005 2006 2007 2008
(1) USA 400,000 1,300,000 1,755,678 3,989,725
Cleared
Treatments
(2) USA 150,000 212,345 301,893 399,782
Resonated/
Energized
Beverages
(3) USA 150,000 250,000 400,000 600,000
Veterinary
Medicine
TOTAL 700,000 1,762,345 2,457,571 4,989,507
These projections assume FDA future clearances; for example, treatments for the alleviation (relaxation) of soft tissue tension such as in the hamstring muscle, Achilles tendon and neck muscles. Long-term plans by JRSE call for clinical studies for mitigating the effects of cardiovascular disease and neurological disorders such as Alzheimer's. These studies are preliminarily scheduled for completion by the end of 2006. The projections for 2007 include modest revenues from these sources, and the projections show additional growth from these revenue sources in 2008.
Proposed Clinical Studies For FDA Clearances -- JRSE remains committed to achieving regulatory clearance by the FDA for our Jacobson Resonators. We hope to complete a double blind randomized placebo controlled clinical study for the alleviation of tension (relaxation) of soft tissue such as a tight hamstring muscle, Achilles tendon or neck muscles, and seek clearance in 2004. We will begin with one indication, such as the tight hamstring muscle, work to achieve clearance, and then move on to the next soft tissue clinical study. The next areas in medical therapeutics for which we plan to seek clearance are in cardiovascular disease, beginning with angina pectoris pain and neurological disorders, starting with Alzheimer's disease, in years 2004-2006. We also have preliminary plans to begin double blind clinical studies to aid in the mitigation of the scourge of cancer, most likely to begin in the out years 2006-2008.
Therefore, the projected revenues show gradual steady growth primarily from the anticipated clearances to treating soft tissue tension with only modest consideration in the out years for what may be the beginning of revenues from the cardiovascular and Alzheimer's market spaces. According to the American Heart Association 61.8 million Americans will suffer from some form of cardiovascular disease in 2003 and will pay about 352 billion dollars for cardiovascular disease related medical costs and disability. We expect to penetrate 3% to 5% of the market segments within ten years in those areas in cardiovascular disease in which we receive FDA clearances. (4)
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. If FDA clearance is obtained to treat and mitigate Alzheimer's we expect to penetrate 3% to 5% of this market segment within ten years. (5)
We will reflect any increased revenues from these initiatives in future announcements.
The Leisure/Spa Industry provides an interesting and lucrative opportunity on a global basis for Jacobson Resonance Technologies. This relaxation and rejuvenation market is open to JRSE throughout the world including the Caribbean Basin, most likely in Europe and Canada, and on the high seas.
JRSE will also be submitting a 513(g) application to the FDA Office of Device Evaluation, Center for Devices and Radiological Health. The purpose of this submission will be to seek the clearance for the use of Jacobson Resonators as a relaxation device.
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 in revenues annually.
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. Upon FDA clearances in the USA, certain segments of this relaxation arena may be available to apply our breakthrough technology.
It should be noted that non-significant risk status was granted to the Jacobson 18" Resonator for use in clinical studies in the treatment of knee pain. Jacobson Resonators utilize physiologic magnetic fields, that is, magnetic forces that exist naturally in the human body. MRT fields are in the pico-Tesla range, that is, millions of times weaker than the earth's natural field in which all life has evolved. Cellular telephones, power lines, electric blankets, hairdryers and household appliances produce force fields ranging from hundreds of thousands to millions of times stronger than naturally occurring Jacobson Resonance fields. The aforementioned examples in contemporary technology have been deemed safe for human exposure by consensus in the scientific community.
USA Resonated/Energized Water and Beverages -- The specialty water and beverage business has exploded into a multi billion-dollar industry. These specialty drinks range from Gatorade to Red Bull, to so-called magnetized water with claims of restructured molecules. JRSE has completed several preliminary scientific studies with water that point toward astounding results. Firstly, we have shown increased water transport across membranes. We also demonstrated changes in hardness, softness, pH, more illumination, that is, more light emanating from the water. In pre-marketing testing people felt they absorbed the water more quickly and had more energy and stamina. Additional scientific studies are anticipated and we are engaged in first and second round negotiations to tap into this lucrative market niche. We anticipate revenues from this sector to begin in 2005.
USA Veterinary Medicine -- There are 22,000 veterinary hospitals and 80,000 licensed veterinarians in the USA. A 1995 marketing study by the American Animal Hospital Association detailed a market of between 115-120 million companion animals (dogs and cats) in the United States for which animal owners spent some $20 billion for pet related products and services. The study also detailed that of the 65 million households 58.5% owned pets and 76% of these considered the animal part of the family. The medical services component of the market, that is, those services dispensed by a licensed veterinarian, accounted for $11 billion in 2001 and continues to grow.
Preliminary studies by JRSE at Mississippi State University and other sites indicate the efficacy for the treatment of animals in pain management and other maladies is analogous to humans. With no regulatory approvals necessary in this market segment, JRSE plans to tap into this segment in 2004/2005 as we show modest revenues beginning in 2005. Initial, promising discussions are ongoing with Veterinarians who are keenly interested in introducing Jacobson Resonance into the veterinary arena.
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) (5) 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. For further information, contact Harvey Grossman at (561) 752.4141.