BOYNTON BEACH, Fla., Oct. 13, 2003 (PRIMEZONE) -- Harvey Grossman, President and Chief Strategic Officer of Jacobson Resonance Enterprises, Inc. (OTCBB:JRSE) announces today the company's estimated revenue projections (except in the USA) from worldwide treatment centers and battery powered portable resonator sales for the years 2004 through 2008:
We believe the Company's estimated worldwide revenue projections for the years 2004 through 2008 will tap into a $300 billion+ market space. 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 and acts as a launching pad for subsequent success.
As an illustration, chronic pain has been said to be the most costly health problem in America, according to NewsRx.com, the American Pain Foundation, National Institute of Neurological Disorders and Stroke and the Bureau of National Affairs. Approximately seventy (70) million Americans suffer from chronic pain from all causes. It costs America about $100 billion annually. These annual costs include forty (40) million doctor visits and five hundred and fifteen (515) million lost workdays. The statistical percentages for chronic pain sufferers in the European Union and associated nations (23 nations with 600,000,000 people) match the USA. Therefore, in Europe approximately 152,000,000 people suffer from chronic pain at an annual cost of about $218 billion.
Our goal at JRSE is to penetrate 3% to 5% of this worldwide chronic pain market segment within ten years. (1)
The Leisure/Spa Industry provides an interesting and lucrative opportunity on a global basis (except in the USA) for Jacobson Resonance Technologies. A good deal of the services provided at leisure resorts, hotels, spas and cruise ships deal with relaxation and rejuvenation. 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 $5 billion in revenues annually. In Europe medical and rejuvenation spas dot the landscape and are often visited as part of vacation time. We estimate that massage therapy alone in Europe generates about ten billion dollars in revenues. Throughout the world, using our patented Magnetic Resonance Therapy (MRT) in Institutional Review Board approved clinical research, 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. This relaxation market is open to JRSE throughout the world in the Spa/Leisure industry including the Caribbean Basin, on the high seas and most likely in Europe and Canada. Upon FDA clearance in the USA, certain segments of this relaxation arena may be available to apply our breakthrough technology.
Once again, the goal at JRSE is to penetrate 3% to 5% of the worldwide relaxation and rejuvenation segment within ten years. (2)
JRSE Revenue Projections in US Dollars For Off Shore Clinics And
Worldwide (except in the USA) Battery Powered Portable
Resonators For 2004 - 2008
2004 2005 2006 2007 2008
------- --------- --------- --------- ----------
(3) Worldwide
Portable
Resonator
Royalties/
P.E.R.,
Inc. 142,879 171,454 314,317 444,215 689,752
------- --------- --------- --------- ----------
(4) Worldwide
Treatment
Centers -- 3,545,500 4,431,875 6,235,856 9,899,348
------- --------- --------- --------- ----------
Total 142,879 3,716,954 4,746,192 6,680,071 10,589,100
Breakout Of Worldwide Commercial Initiatives
The foundation for our projected commercial success in the first couple of years is based on worldwide initiatives (except in the USA) in pain management and the leisure/spa relaxation and rejuvenation arenas. The out-years begin to see revenue streams from various initiatives and multiple regions of the world.
Worldwide Portable Resonator Sales for Human Usage - An exclusive line of battery powered portable resonators is about to be introduced on the world scene (except in the USA). Personal Electromagnetic Resonators, Inc., will manufacture and market these lightweight miniaturized devices. The patented technology being employed has achieved Canadian clearance and European approval. This technology has been known to aid in the alleviation of pain and discomfort and relax soft tissue tension, as in muscles. These resonators will be available through the Internet, opt-in e-mail advertising, print media advertisements in major cities, at off-shore clinics, storefront retail where available, and eventually through infomercials. The resonators should be available Q1/Q2 of 2004. A double blind randomized placebo-controlled study for FDA clearance is being planned for 2005. Revenues for sales in the USA, after the projected FDA clearance, are reflected in years 2006-2008.
Worldwide Treatment Centers -- Our master plan for operating Magnetic Resonance Therapy (MRT) treatment centers calls for penetration into every region of the world (outside of the USA) in the next ten years. It is our desire to either introduce or widen the coverage of our breakthrough medical and leisure technologies to: The Caribbean Basin, Canada, Mexico, Latin America, Europe, Russia, China, India, The Pacific Rim including Japan, Australia, South Africa, Israel and the Middle East. Our first treatment centers will be in territories with liberal regulatory policy. We will move deliberately and prudently during the first five years with about twenty-two centers operating by 2008. The first target region is in the Caribbean Basin.
In the first two years the emphasis will be on pain management and relaxation and rejuvenation in the leisure/spa arena. In years three, four and five we anticipate phasing in treating people with cardiovascular disease and neurological disorders. We will also increase our research, clinical studies, and the treatment of cancer sufferers both for pain and with the hope of aiding in the mitigation of the disease itself.
The structure of royalty agreements will vary from region to region. Thus, the projections are conservatively based upon patient revenues from clinical operations whether wholly owned, partially owned or simply royalty based without ownership by JRSE. The projections are based upon forecasted numbers of clinical facilities operating in regions throughout the world from which royalties will be derived not withstanding direct sales to hospitals, etc. Projections are based upon the assumption that necessary capital, personnel and key opinion leaders will be of sufficient resource such that regulatory approvals, legal requirements and business opportunities will avail JRSE technology of market penetration as estimated.
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) 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.