CEDAR KNOLLS, NJ., April 12, 2004 (PRIMEZONE) -- Scantek Medical, Inc. (Pink Sheets:SKML), recently issued a letter to its stockholders which indicated that management believes that the year 2003 was the turning point in the Company's history.
On December 9, 2003 the Company announced that it had entered into a contract with Instituto Cultural Do Trabalho ("Instituto Cultural"), a non-profit organization which is a division of Central Geral Dos Trabalhadores ("Central Geral"), for the sale of its BreastCare(tm) in Brazil. Pursuant to the terms of the contract, Instituto Cultural will purchase 240,000 units of BreastCare(tm) at the rate of 20,000 units each month for 12 months. The aggregate selling price for such units will be in excess of US$3,400,000. The Company anticipates sending the first shipment of 20,000 units no later than April 2004 and it will make monthly shipments thereafter. The contract is guaranteed by Central Geral, a major Brazilian union organization, which includes 20 unions which represent an aggregate of in excess of 18 million workers.
Previously, on October 28, 2003, the Company announced that it had received two orders for the sale of its BreastCare(tm)/BreastAlert(tm) Differential Temperature Sensor product ("BreastCare(tm)") in Brazil: one order, for 10,000 units of BreastCare(tm) from the Workers General Confederation, a Brazilian workers' union, which the Company anticipates shipping in April 2004.
Although the Company has not yet received approval from the Brazilian National Institute of Cancer ("INCA") with respect to BreastCare(tm), the aforementioned orders are not dependent upon such approval. Other significant pending orders may not be subject to INCA approval. The Company has made an application for INCA approval and it has accepted the Company's protocol in the approval process. The Company is confident that it will receive approval from INCA in the near future. Once INCA approval is obtained, all Brazilian Federal Agencies and municipalities will be able to purchase BreastCare and the government will subsidize those purchases.
The Company looks to the coming year with great confidence and enormous optimism. Although, the Company will require additional financing, it is confident that its sales in Brazil will facilitate its ability to obtain such financing, as it demonstrates a monthly cash flow.
The Company plans to file updated reports to become current with its filings with the Securities and Exchange Commission and then reapply to the Over-the-Counter Bulletin Board.
Statements in this press release which are not historical, including management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the risk factors and other information set forth in the Company's filings with the Securities and Exchange Commission. Actual results could differ materially from any forward-looking statements and may vary from management's expectations and cannot be guaranteed.