Financial Results – Q2 2009

The Company’s sales for the fiscal 2009 second quarter ending March 31, 2009 was $1,385,177. On a year to date basis, sales were $3,019,163 which was a 10% increase over the same period for fiscal 2008. Gross margin for the second quarter was $972,948 or 70% of sales. Year to date, gross margin of $2,138,100 or 71% have increased compared to $1,917,283 or 70% for fiscal 2008.

Operating expenses of $958,627 for the second quarter have also increased compared to $705,675 for the same quarter in fiscal 2008. The increase in operating expenses was due to greater efforts in sales and marketing and product development to further penetrate the EMS and hospital markets. Net loss for the quarter was $137,926 and net loss for year to date was $183,915.

CEO Update

The Company announced in March that it was restructuring its executive to address its strategic plan and business objectives. Effective immediately, David Christie no longer holds the positions of Chief Executive Officer and President (note David also subsequently resigned as a director).

Bob DiSilvio (currently a Pyng Director) was appointed as interim-Chief Executive Officer of the Company. The Company is currently seeking a permanent CEO and a replacement director for David.

The Board of Directors thanks David Christie for his contributions to Pyng over the past two years and also wishes him well in his future endeavors.

Tradeshow and Conference Review

Over the last quarter, the Pyng Medical sales staff were busy attending a number of tradeshows and conferences displaying our suite of award-winning medical devices to specialists in the areas of EMS, Hospital and Military. At all conferences, Pyng received excellent reception on all products – especially the much anticipated release of the CRIC and FASTx™.

The National Association of EMS Physicians (NAEMSP) was held in Jacksonville, FL this past January. In attendance were over 500 EMS professionals including key decision makers and medical directors. A focus group was held on the upcoming release of the FASTx™, where we gained valuable feedback from key industry personnel.

In association with our distributor New Medical Center, Pyng exhibited at Arab Health in Dubai, UAE in January. With over 50,000 professionals from healthcare sectors all over the world, this is a new market for Pyng and the products here were very well received.

The EMS State of the Science Conference, also known as “A Gathering of Eagles” was held in February and attracted over 450 pre-hospital emergency care providers such as physicians, paramedics, EMT’s, first responders, EMS system directors, fire chiefs, medical directors, educators, emergency nurses and researchers. The “Eagles” are comprised of most of the jurisdictional EMS Medical Directors for the nation’s 20 – 25 largest cities 911 systems as well as the FBI and the U. S. Secret Service.

In March, our VP of Business Development, Royce Rumsey, attended Resuscitation 2009 in Las Vegas. This was the perfect opportunity for him to demonstrate and have medical professionals try the CRIC for themselves. Response here was very favourable.

EMS Today, held in Baltimore in March, is one of the largest shows of the year for Pyng. This year, with over 4000 EMS professionals in attendance, Pyng was very happy with the response and number of quality leads generated from this event.

At the end of April, Pyng also attended Marine South, a military exposition that attracts thousands of military professionals and key decision makers from all of the Armed Forces in the United States. Amongst the showcasing of defense equipment, Pyng Medical’s products were displayed and proved how effective they could be on the battlefield.

For a listing of upcoming shows that Pyng will be attending, please visit our website at the following link: www.pyng.com/contact-us/conferences/.

US Patent Application for the MAT® – Mechanical Advantage Tourniquet

Pyng Medical has just received notice that our patent application for the MAT® has been allowed by the United States Patent and Trademark Office.

Product Development and IP Portfolio

Pyng Medical expanded its intellectual property portfolio with 29 patents / patent applications through product acquisitions and product development efforts, industrial design and numerous trademark filings.

The development of the FASTx™ Sternal Intraosseous (IO) Device is proceeding following a successful showing of the first BETA prototype version at SOMA 2008. The next generation FASTx™ is an all in one Sternal IO device that will incorporate the direct pull-to-remove low profile flexible infusion tube, is light, single-handed use, and features integrated sharps protection. The FASTx™ Sternal Intraosseous Device is illustrated on Pyng Medical’s new product website at:
www.pyngmedical.com/fastx/index.html.

The Pyng team is also working on preparing the CRIC Cricothyrotomy Kit for its first customer shipment. The CRIC will be manufactured in Brea California by one of our outsourced partners and will be launched once FDA and international approvals have been received.

Also being launched later this summer is the SEATD™ Airway Trainer (Stock Emergency Airway Training Device). The SEATD™ provides dynamic anatomical replication, enabling superior, realistic teaching and training scenarios for all surgical airway instruments and techniques. It is the first and only flexible training device that replicates the tracheal anatomy, integrating skin, cricothyroid structure, membrane and trachea in an economic, replaceable module.

Further information on these exciting new products will be available through the summer months and in subsequent issues of this newsletter.

From the Field

Our VP of US Sales, Nadine Gaston, and Product Manager, Julee Arbuckle, recently trained 120 representatives and managers of a major hospital distributor at their regional meetings in the sale of FAST1® and T-POD®. More news to follow on this exciting development.

As states and counties across the US implement new EMS protocols that now include the use of a tourniquet, we’ve seen our revenues more than double for the MAT® Tourniquet in the last quarter with forecasted rapid expansion in this market.

Distribution Network Update

In a strategy to stabilize and improve Pyng’s global distribution capabilities, we began the process of rationalizing poor performing channel partners and the contracting of the best-in-class international market segment distribution channel leaders. The contracting, training and launching of the new international distribution channel partners will be completed in June, to take advantage of the international sales launch of CRIC, now that we have obtained a CE mark.

New Pyng Website Update

If you have not visited the Pyng website in a while – you are in for a pleasant surprise. The site was updated and re-designed approximately a year ago. Each of our products (FAST1®, T-POD®, MAT® and CRIC) now have its own individual website where you will find information on the product, as well as how it works, demonstrations, testimonials, research papers, articles and much more.

The Pyng website also houses all of our corporate and investor related materials. Under the Investor and News sections of the website you will find quarterly financials, presentations, corporate backgrounders, news releases and newsletters.

We are continually making upgrades to the site and our most recent addition is the availability of FAST1® Online Training Materials. Now FAST1® users can access training materials at their own leisure. Included on the FAST1® site are the following training materials:

• FAST1® Product Brochure
• Training Manual
• Insertion Instructions
• Training Video
• Removal Instructions
• Training Presentation (PowerPoint)

To access these training resources, simply go to the following link: www.fast1sternal.com/how-fast1-works/training/.

Quality Assurance / Regulatory Affairs

Pyng Medical Corp. continues to maintain its quality management system in accordance with ISO 13485:2003, ISO 9001:2000 and 21CFR Part 820. We are currently seeking clearance for the CRIC Cricothyrotomy Kit in the US, Canada and Europe. We recently had a very successful meeting with the FDA concerning the 510(k) submission for the CRIC Cricothyrotomy Kit and look forward to working with the FDA on getting clearance for the device. A Health Canada License Application has been made and we hope to hear from Health Canada in the near future. The CE Mark for CRIC is under review.

Chest is Best Achieves US Trademark Certification

Pyng Medical is happy to announce that we have recently been approved by the US Patent and Trademark office for the FAST1® tagline, Chest is Best. All future literature and mention of this tagline will now display the registered trademark symbol – Chest is Best®.

As always, we encourage all shareholders to contact Pyng Medical Corp. with any questions or recommendations @ 1-800-349-7964.