PLANTATION, Fla., Sept. 20, 2005 (PRIMEZONE) -- MEDirect Latino Inc. (Pink Sheets:MLTO) (http://www.medirectlatino.org) today announced that the company has secured a satellite distribution and customer service facility located in San Juan, Puerto Rico, which represents the company's first expansion beyond its home office in Florida. MEDirect Latino plans to staff the facility with customer service representatives and logistical support personnel to expand current distribution services and reduce operating costs. Additionally, the company, through this local presence, will expand reimbursement services to the commonwealth's dually eligible, Medicare-Medicaid market. According to recent commonwealth data, this expansion adds 253,000 potential customers to the company's market penetration plans in Puerto Rico, with a total dually eligible market potential of $334 million.
The company will utilize this facility to directly distribute products to its Puerto Rican customers, currently being serviced from the company's 6,000 square foot office/warehouse facility in Florida. Drop shipments of pharmaceutical products to the San Juan facility by suppliers is estimated to reduce operating cost 2.5 percent, with a corresponding increase in the company's net profits. The company will utilize its customer service representatives to call on general practitioners and endocrinologists who service the diabetic community in Puerto Rico, thereby expanding its products and services for the first time into the general commercial market.
"The expansion of services and products to the dually eligible Medicare-Medicaid market through the opening of our first expansion office further enhances the mission of the company in fulfilling the critical link between the Hispanic Medicare-eligible beneficiaries and their health care needs," stated MEDirect Latino Inc. president, Ms. Debra L. Towsley. "By expanding our reimbursement model to Medicaid beneficiaries, as well as our traditional market of Medicare beneficiaries, MEDirect has immediately grown our potential customer base. The company is committed to the development of non-traditional revenue streams, which are outside of the typical DME (Durable Medical Equipment) business model. We will continue to add complimentary products and services which stimulate our rapid growth. Our recently reported results include a 100 percent increase in gross revenues for August as compared to July, and we expect to achieve similar or better results in September from August."
Mr. Raymond Talarico, co-chairman of the board of directors and CEO of MEDirect Latino added, "The national launch of our products and services begins today on the Telemundo television network. As we gain a foothold in the U.S. domestic market, we intend to duplicate our facility expansion in other areas of the country as our sales justify the need, or when we believe that a particular state's Medicaid reimbursement system is ideal for our customer profile. In Puerto Rico, we will realize a substantial savings per package by shipping our local customer orders directly from our Puerto Rico facility. These savings fall directly to our earnings and therefore enhance our overall valuation. Furthermore, our growth in Puerto Rico certainly justifies this expansion. Currently, we deal with well over 1,800 primary care physicians on the island. We intend to utilize our San Juan staff to directly market to additional health care professionals and further expand our branding." Further stated Mr. Talarico, "It is very satisfying that the our largest referral source comes from physician offices whose patients use our services and inform the doctor of how pleased they are, and the physician then recommends MEDirect to his or her other patients."
Additional company information may be obtained by reviewing a detailed analytical profile generated by small-cap analyst, Mr. Gerald Kieft, president of Wall Street Resources, Inc. The 27-page report includes detailed information on the company's business model, products, industry, valuation, management, and risks.
The free report is available at: http://www.wallstreetresources.net/pdf/fc/MLTO.pdf.
About MEDirect Latino
MEDirect Latino (Pink Sheets:MLTO) (www.medirectlatino.org) is a rapidly growing, uniquely positioned provider of direct-to-consumer Medicare-reimbursed medical products focused exclusively on chronic diseases afflicting the Hispanic community in the United States and Puerto Rico. MEDirect is the only company positioned to serve the U.S. Hispanic health care market as a direct-to-consumer Medicare provider on an authentically national level. The company's current focus is the distribution of products for the treatment of Type II diabetes specifically because of its disproportionate impact and increasing diagnosis rate within the U.S. Hispanic population, noting an incidence of 120 percent higher than among non-Hispanic whites. Type II diabetes was also targeted because of its unique status within the Medicare reimbursement regime and because of its high degree of correlation to other chronic conditions such as high blood pressure and heart disease. These other conditions represent considerable future market potential that will allow MEDirect to efficiently scale its model by leveraging its existing client base and infrastructure.
The current Hispanic market for MEDirect's products is conservatively estimated at approximately $650MM in the continental United States. The size of the opportunity is understated by such figures as an estimated 925,000 of the over 3.1 million Hispanics in the United States over 65 eligible to receive Medicare benefits are currently collecting these benefits with an estimate that over 1.4 million of those Medicare-eligible Hispanics have diabetes (implying a potential continental U.S. market for MEDirect products of approximately $1 billion).
Forward-Looking Statements
Statements about the company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. The company's actual results could differ materially from expected results. The company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release; the company will appropriately inform the public.
The MEDirect Latino Inc. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1873