KENNEWICK, Wash., Feb. 5, 2008 — Advanced Medical Isotope Corporation, (AMIC), headquartered in Kennewick, Wa., has released the following Chairman’s Message to Shareholders:
What an exciting and dynamic year we experienced together in 2007! By every measure, 2007 was a year of considerable activity and advancement for your company.
During the past twelve months, your company has made significant strides towards its goal to capitalize on the significant growth in nuclear medicine, positioning itself by:
– purchasing the first linear accelerator located in North America specifically designed for the purpose of PET isotopes production, with expanded capability to produce other high demand isotopes.
– initiating construction of our Washington State isotope production center and processing laboratory, and signed our first supply contract with a regional medical center.
– completing a strategic acquisition of a competitive firm, thereby establishing our position as a marketplace supplier through international sales of the Oxygen-18 isotope.
– formalizing working relationships with three universities (SUNY Buffalo, Idaho State University, and University of Missouri) as well as with three U.S. national laboratories (Pacific Northwest National Laboratory, Los Alamos National Laboratory, and Lawrence Berkeley National Laboratory) engaged in isotope production and application research.
– licensing the intellectual property rights for an advanced neutron production device.
– initiating three international advanced technology collaborative development projects for production and isotopic separation capability to offer high-value products not available from other sources.
– initiating discussions for the construction later this year of regional PET isotope production centers in Los Angeles, California and Oahu, Hawaii.
– entering into formal negotiations for the creation of strategic relationships to produce and sell medical isotopes in Taiwan and China.
This year, in late March we will have the official opening of our Washington State production facility in conjunction with a medical isotope symposium.
The Cure Starts Here! Symposium is principally sponsored by Citizens for Medical Isotopes (http://www.medicalisotopes.org) and will highlight the research, education, production, diagnostics, and therapies for many maladies, with the primary focus on diagnostics and therapy for various cancers. Rev. Jesse Jackson as well as a senior researcher from the Albert Einstein College of Medicine (where HIV-infected cells have been targeted and killed with medical isotopes) will be among the dignitaries present and speaking at the event. For further information about attending, please contact The Maurer Group, (509) 783-4677.
Further, I am most proud of our talented and committed employees, consultants, and Board of Directors for assisting AMIC in leveraging our financial, human and scientific/technological resources. AMIC’s standard commitment to value with a strategic emphasis of cost-effective technological innovation while developing and extending long term client relationships built on trust and performance should translate to shareholder value. Our various agreements with national laboratories and universities complement our strategy by speeding the launch of a variety of different products. The long term demographic trends as well as our scientific team’s technological innovations favor our core product mix.
There are more than 15 million nuclear medicine procedures performed each year in the U.S. Approximately one-third of all patients admitted to U.S. hospitals undergo at least one medical procedure that employs the use of medical isotopes. Diagnostic radioisotopes are used for functional (as compared to anatomic) imaging of internal organs. Therapeutic isotopes are effective in treating cancer and other illnesses while substantially reducing the adverse side effects of chemotherapy or radiation. When radioisotopes are compounded with other chemicals to make a drug, they are termed radiopharmaceuticals.
Frost & Sullivan, market analysts, indicate the U.S. sales of diagnostic radiopharmaceuticals reached $1.69 billion in 2005 and are expected to rise to $3.52 billion by 2012. This forecast is based on the introduction of new products for cardiology and oncology and continued growth of PET imaging. Bio-Tech Systems, Inc., health industry analysts, project that the market for therapeutic radiopharmaceuticals would reach $1.9 billion by 2012, with accelerating growth thereafter.
Currently, the major PET radiopharmaceutical is F-18 FDG (fluorodeoxyglucose). FDG sales are projected to increase from $259 million in 2005 to $933 million by 2012. FDG distribution will continue to improve, allowing more widespread use of PET imaging in community hospitals (which is an AMIC target niche). With procedure volume increasing, PET is expected to become more profitable for providers as well as for suppliers of FDG.
In conclusion, while developing cost effective, disruptive new technologies as well as implementing superior delivery systems, I am confident that Advanced Medical Isotope Corporation will soon prove to be an innovative leader in our specialty and we will endeavor to deliver strong returns for our shareholders. We are truly a company that consists of people promoting elements of change.
James C. Katzaroff
Chairman and President
Advanced Medical Isotope Corporation
Advanced Medical Isotope Corporation is engaged in the development of advanced production systems and processes for bringing previously unavailable medical isotopes to the marketplace and advanced systems for local product production. The field of nuclear medicine has routinely utilized radioisotopes in the diagnosis of disease while new processes are being pioneered for the targeted treatment of diseases such as cancer in preference to surgical techniques. Advanced Medical Isotope Corporation products support the accessibility to these less invasive therapeutic processes by advancing systems for lower cost production and improving supply availability of medical isotopes to hospitals and clinical treatment centers. For more information, please visit http://www.isotopia.us
Except for historical information contained herein, the matters set forth in this press release, such as statements relating to the company’s ability to drive technological developments and the acceptance and timing of product introductions, are forward-looking statements that are subject to risks and uncertainties, including but not limited to, timely developments and acceptance of new products, the impact of competitive products and pricing, the timely developments and release of products by suppliers, and other risks.
Advanced Medical Isotope Corporation
James C. Katzaroff
Fax: (509) 736-4004
Source: Advanced Medical Isotope Corporation