Med-Emerg International Inc. reports second quarter results



    TORONTO, Aug. 14 /CNW/ - Med-Emerg International Inc. (OTCBB - MDER)
reported today a loss attributable to common shareholders for the second
quarter of 2007 of ($193,225) ($0.00 per share), compared to income of
$692,565 ($0.01 per share) in same period of 2006. The income in the second
quarter of 2006 was related to the recovery of income taxes that was recorded
in the period. In the second quarter of 2007, the Company incurred a loss from
discontinued operations of ($64,369), resulting from losses at its Family
Medical Clinic operations. Effective July 31, 2007, the Company sold one of
its two remaining Family Medical Clinics.
    Revenues from continuing operations for the three months ended June 30,
2007 increased 12% compared to the corresponding period in 2006. The increase
in revenue reflects the growth of the Company's Medical Services business,
where the Pain Management and Infusion Services business increased revenues
89% and 54%, respectively. For the three months ended June 30, 2007, the
Company incurred a loss from continuing operations of ($128,856) compared to a
gain of $145,177 in the corresponding period in 2006. The loss reflects the
reduced number of clients in the Staffing Solutions and Healthcare Consulting
businesses and costs of the planned expansion of infrastructure in the Pain
Management business. The Staffing Solutions business lost two significant
contracts in the second half of 2006. Actions taken to remedy this situation
have caused costs to increase in the short-term. The Healthcare Consulting
business had fewer contracts in the second quarter of 2007 as compared to the
second quarter of 2006. During the fourth quarter of 2006, the Pain Management
business increased its operating capacity by hiring a Director of Operations,
a full-time recruiter and a training coordinator. As well, certain start-up
costs were incurred during the first quarter of 2007 in opening four new pain
centers. These costs enable the business to meet the continued growth plans in
Pain Management.
    Dr. Ramesh Zacharias, Chief Executive Officer of the Company, stated,
"Our Medical Services business, both Pain Management and Infusion Services,
showed positive results. Revenue in the Medical Services business increased
72% on a year-over-year basis. Results for the Staffing Solutions and
Healthcare Consulting businesses were unacceptable and steps are being taken
to correct the situation."
    The Company's financial statement information for the three and six
months ended June 30, 2007 is summarized below:

    
    (US$000's except            Three Months Ended       Six Months Ended
     share information)               June 30                June 30
                              ----------------------- -----------------------
                                    2007        2006        2007        2006

    Revenue                        5,352       4,757      10,423       9,041
    EBITDA                           (43)        210        (193)        316
    Income (loss) from
     continuing operations          (129)        145        (359)        125
    Income (loss) from
     discontinued operations         (64)        547        (121)        636
    Net income (loss) attributable
     to common shareholders         (193)        693        (480)        761

    Net income (loss) per common
     share (basis and diluted)
      Continuing operations        (0.00)       0.00       (0.01)       0.00
      Discontinued operations      (0.00)       0.01       (0.00)       0.01
    Weighted average shares
     outstanding, basic       58,277,696  58,277,696  58,277,696  58,277,696



      (US$000's)
                                                           June      December
      Balance Sheet Data:                                30, 2007    31, 2006

        Working Capital Surplus                            2,898       3,912
        Total Assets                                       7,808       7,901
        Notes Payable                                        378         453
        Shareholders' equity - Canadian GAAP               1,042       1,424
        Shareholders' equity -  US GAAP                      722         907
    

    MEII specializes in the coordination and delivery of health care services
in Canada. These services include community-based infusion centers, an
integrated chronic pain management program, healthcare consulting, and health
human resource management, including physician and nurse staffing.

    All statements included in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. The words "plan", "expect",
"believe", "intend", "anticipate", "forecast", "target", "estimate" and
similar expressions identify forward-looking statements. Forward-looking
statements are based on assumptions made by and information currently
available to the Company. Investors are cautioned that these forward-looking
statements are neither promises nor guarantees, and are subject to risks and
uncertainties that may cause future results to differ materially from those
expected. These risks and uncertainties are outlined in the Company's Annual
Report on Form 10-K for 2006, its Quarterly Reports on Form 10-Q, and such
other documents as are filed with the Securities and Exchange Commission from
time to time. The Company does not undertake to review or update these
forward-looking statements. The Company qualifies all of the information
contained in this press release, and particularly its forward-looking
statements, by these cautionary statements.

    %SEDAR: 00014075E




For further information:

For further information: Ramesh Zacharias, CEO, Med-Emerg International
Inc., Tel: (905) 858-1368, Email: rzacharias@med-emerg.com

Organization Profile

MED-EMERG INTERNATIONAL INC.

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