GIG HARBOR, Wash., May 2, 2006 (PRIMEZONE) -- Nannaco, Inc. ("Nannaco") (Pink Sheets:NANN) announced today that it is moving closer to the merger date whereby Nannaco will acquire Comprehensive Physics & Rehabilitation Services ("CPRS"), a Nevada corporation. Upon the closing of the merger, which is expected to be completed within the next 30 days, Nannaco will change its name to OncologyMed.
CPRS is a 12 year old firm that provides specialized Internet based treatment plans and medical physics consulting services for radiation centers. Nannaco's acquisition of CPRS will provide the potential foundation for the entity to achieve significant revenue growth from both (i) internal expansion of CPRS's existing business, and (ii) from its plan for future acquisitions in the highly fragmented radiation and cancer industries. CPRS achieved revenues of approximately $1,700,000.00 for the year ended 2005 with EBITDA of approximately $100,000.00. Management believes that the merger will provide CPRS with greater access to capital with which it intends to commence enhanced sales and marketing efforts.
Currently, there are over 2,000 radiation centers in the country providing radiation services to cancer patients. Depending on the type of cancer and condition a patient, on average, receives approximately 26 treatments during the course of radiation therapy. During the course of treatment, patient records and actual care have to be closely monitored and generally require approximately 5 patient reviews made by a qualified medical physicist. These patient or chart reviews assure proper patient care. In many radiation centers, lack of a full time available physicist can result in less than optimal patient reviews.
CPRS addresses these needs by providing a full range of patient specific radiation service treatment plans in addition to online treatment plans. This solves two key barriers of entry for radiation centers seeking to offer new technology by making available the most advanced treatment methodology to smaller radiation centers without substantial investment for equipment and staff. The Company, therefore, offers the possibility to enable radiation centers to increase revenues and profits while lowering expenses and improve quality.
CPRS Adds Community Radiation Therapy As A New Client.
CPRS announced today the addition of Community Radiation Therapy, PC in Brooklyn, New York as a new client. CPRS has provided the cancer center with equipment evaluation, solid IMRT program setup, and will provide online treatment planning services and quality assurance (QA) review for all IMRT patients treated at the center. This remote service, the first of its kind in the Brooklyn area has generated much interest and is expected to be fully implemented before June 1st of this year.
IMRT (Intensity Modulated Radiation Therapy) is a procedure for delivering radiation treatment for cancer patients in a precisely defined beam of radiation to a tumor while minimizing the radiation to surrounding tissues thus allowing for higher doses to diseased tissues.
Many linear accelerators (radiation machines) used for radiation therapy are equipped with multi-leaf collimators or MLC. These devises are used to deliver IMRT treatments which is the current state of the art treatment for cancer patients seeking radiation therapy. However, many older accelerators lack this feature and until recently were unable to offer this enhanced treatment modality to patients. However, IMRT with filters, ("Solid IMRT") can be offered locally in small or rural clinics that do not have the patient volume to justify expensive equipment upgrades. Solid IMRT filters can make any linear accelerator IMRT capable regardless of it's age, thus making this advanced technology available to tens of thousands Americans that otherwise would have to inconveniently travel for treatment, or, settle for less effective treatment options. IMRT has greatly enhanced the effectiveness of radiation therapy while at the same time reducing the undesired side-effects common with conventional radiation therapy.
CPRS will install these new filters for Community Radiation allowing them to provide solid IMRT to patients and on a continual basis will provide IMRT Internet based treatment planning services to Community Radiation patients. It is expected that the contract with Community Radiation will increase CPRS revenues by 5% -- 10% over the next 12 months.
About CPRS -- Acquisition Target of Nannaco, Inc.
CPRS is the oldest remote dosimetry service in the U.S. providing solid IMRT treatment planning anywhere in the world. CPRS provides specialized Internet based treatment plans and medical physics consulting services for cancer centers. In many radiation centers, lack of a full time medical Dosimetrist and/or medical physicist can result in less than optimal patient treatment. CPRS addresses these needs by providing a full range of patient specific radiation treatment plans over a sophisticated web based Internet system. This allows CPRS to support the use of new technologies by making available the most advanced treatment methodology to smaller radiation centers without substantial investment for equipment and staff. The Company, therefore, offers the possibility to enable radiation centers to improve patient outcomes, increase revenues and profits while lowering expenses. CPRS operates its remote treatment planning services out of a facility located on the east coast. Medical Physics services and specialty consulting are also provided at client sites.
About NANNACO, INC.
Nannaco, Inc. previously provided surface cleaning, surface protection, surface restoration and other services to commercial and industrial businesses, as well as to owners of historical buildings. The company has moved to a new line of business as a consultant and advisor to customers and is seeking to improve its financial position through the acquisition of, or merger with, companies capable of providing the best value to its shareholders.
More information about Nannaco Inc. can be found at http://www.sec.gov.
NOTE: This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) the company's limited operating history; (2) the company's ability to pay down existing debt; (3) the company's ability to retain the professional advisors necessary to guide us through our corporate restructuring; (4) the company's ability to secure necessary financing; (5) potential litigation by shareholders and/or former or current advisors against the company; (6) the company's success in securing third-party commitments, production agreements and/or licensing contracts; (7) the company's ability to comply with federal, state and local government regulations and/or unforeseen changes in federal or and government regulations; and (8) the risks inherent in the investigation and consummation of the acquisition of a new business opportunity or other factors over which we have little or no control.
For further information, please contact Steve Careaga at (253) 853-3632, or send correspondence to 4916 Point Fosdick Dr., Suite 102, Gig Harbor, WA 98335.