Pyng Medical Corp

Financial Results – Q3 2009

Pyng Medical’s June 2008 asset acquisition of BioCybernetics International products is beginning to pay dividends, both in revenue contribution and our strategic objective to diversify the customer base. The company’s focus on building the EMS and Hospital customer base is evidenced by the Q2 to Q3 revenue growth in the MAT® Tourniquet of 96% and a 174% increase in the T-POD® Pelvic Stabilizer binding system. The company’s CRIC™ Cricothyroidotomy System, having received the European medical CE mark, is expected to be shipped in September to Canada, Europe and Asia-Pacific distributors.

The Company’s sales for the third quarter of fiscal 2009 were $1,288,743 and sales for year to date were $4,307,905; which was comparable to $4,380,943 for fiscal 2008 year to date. Our flagship product, the FAST1® Intraosseous Infusion System, is the largest selling Sternal IO System with over 197,000 units shipped to-date.

Cost of sales for the third quarter of fiscal 2009 was $388,451 providing a gross margin of $900,292 or 70%. Total operating expenses for the quarter decreased from $922,528 for the third quarter of fiscal 2008 to $879,603 for the third quarter fiscal 2009. On a percentage basis, operating expenses increased from 57% of sales for the quarter ended June 30, 2008 to 68% for the quarter ended June 30, 2009. The Company recorded a net loss before tax of $101,518 for the quarter ending June 30, 2009. This was attributed to the sales of the FAST1® Intraosseous Infusion System which were negatively impacted due to diminished military offensive operations and less severe injuries sustained by military personnel and civilians.

Full financial results for third quarter fiscal 2009 are available on SEDAR at www.sedar.com.

Pyng Signs Exclusive Agreement with Tri-anim Health Services

Tri-anim Health Services, a national distributor of healthcare products, is now the exclusive hospital distributor for Pyng’s FAST1® Intraosseous Infusion System and the T-POD® Pelvic Stablizer in the United States.

The Tri-anim’s 100 person direct sales team will serve as a key resource in accessing the US hospital distribution channel and promoting Pyng’s award winning products.

To read the full press release, click here.

New Pyng Staff Announcements

Over the past few months we have had two new members join the Pyng team:

Bill Saltztein – Vice President of Engineering

Bill has been working with Pyng over the past few months on a contractual basis, assessing our engineering and product development process. Effective July 20, 2009, Bill joined the Pyng team full time as the Vice President of Engineering.

Bill’s extensive background in technology and medical device design will assist Pyng in developing new solutions for trauma medical care, as well as enhancing the company’s existing product lines. Bill founded Code Blue Communications in 2000 to bring Bluetooth wireless technology to medical and industrial markets. For the past several years, Code Blue has primarily provided consulting services to large and small medical device companies in the areas of program management, technology and product development. In 2006 Bill took 2 years off from Code blue to lead the development of a revolutionary home safety product at LifeTone Safety.

Prior to founding Code Blue Communications, Bill served as Director of Advanced Development at Medtronic Physio-Control in Redmond, WA. Before joining Physio-Control, he led product and business development teams at Instromedix and Hewlett-Packard developing both diagnostic and interventional cardiology equipment for Emergency Medicine and Hospital customers.

Bill holds 20 patents associated with battery-powered and portable medical devices, communications and other technologies. His active professional memberships include AAMI, IEEE, and Bluetooth SIG.

Elizabeth Farasy – Regional Sales Manager

Elizabeth Farasy joins Pyng in the newly created role of Regional Sales Manager.

Coming most recently from Medtronic Physio-Control, Elizabeth’s consultative sales approach resulted in converting some of the biggest competitive civilian and VA hospitals in the Western US. Her consistent top-tier performance selling into the Emergency Medical Market, calling on the very key customers that make the buying decisions for our suite of trauma products, will translate well as she works closely with our partners and end customers to expand the breadth of our market presence into hospitals, EMS, and Law Enforcement.

Prior to working for Medtronic Physio-Control, Elizabeth served as District Sales Manager for Vistakon, a division of Johnson and Johnson. Based out of Denver, Colorado, Elizabeth will start by working with and across the entire US market, eventually focusing on the West.

CEO Update

Bob DiSilvio, who assumed the role of interim Chief Executive Officer when Pyng underwent an executive restructuring in March, will now take on the role of President and Chief Executive Officer on a permanent basis.

Tradeshow Review

Pyng just attended the ATACCC show, Advanced Technology Applications for Combat Casualty Care, in Florida. ATACCC is the DOD’s premier scientific meeting that addresses critical advances in trauma medicine and the unique medical needs of the war fighter. On display was our FAST1® Intraosseous System, the MAT® Tourniquet, the T-POD® Pelvic Stabilizer and the CRIC™ Cricothyroidotomy Kit. Reception for all products was very positive.

Pyng has a busy fall tradeshow season coming up, with some of the largest shows of the year.

ACEP, The American College of Emergency Physicians annual Scientific Assembly is being held in Boston, MA this year from October 5-8, 2009. Every year this event draws emergency physicians from all over the United States including medical directors, physicians, nurses, residents, practitioners, and paramedics.

EMS Expo is known as the largest gathering of EMS professionals in North America with over 6000 professionals from 50 states and 32 countries in attendance at the 2008 show. Held this year from October 26-30, 2009 in Atlanta, GA, Pyng will be present at this show yet again with a display of all of our products.

SOMA, the Special Operations Medial Association Annual Conference, is taking place from December 12 -15, 2009 in Tampa, FL. SOMA members are directed toward the education and training of the Special Forces/Special Operations Forces Medic, who often alone and unsupported, in perilous tactical or non-tactical circumstances, are responsible for the health care of the team and surrounding indigenous population (including non-combatant civilians).

Pyng Creates Senior Advisory Board

In June, Pyng Medical created a Senior Advisory Board to advise its Board of Directors. Lead by Pyng’s director, Mr. L. J. “Bud” Evans, the initial appointees consist of:

• Dr. Blanck, D.O. is Vice Chairman & Partner of Martin, Blanck & Assoc. and Former Surgeon General of the US Army & Commander of the US Army Medical Command, Lt. General US Army (Ret.)
• Dr. Charles Harvey Roadman II, MD, CNA is Chairman of the Board of Trustee of the Altarum Institute and a Former President and CEO American Care Health Association and served as Surgeon General USAF, Lt. General USAF (Ret )
• Mr. Bristol, M.B.A., Ph.D., was most recently Senior Managing Director and Head of Investment Banking at W. R. Hambrecht + Co from 2003 to the present.

Pyng Announces Closing of Private Placement

Further to its press releases dated May 14, 2009, May 25, 2009 and July 9, 2009, that it has closed the first tranche of its non-brokered private placement (the “Private Placement”) of secured subordinated convertible notes (the “Notes”) and common share purchase warrants (the “Warrants”). Total gross proceeds of $547,725 were raised through the sale of $545,000 principal amount of Notes and proceeds of $2,725 for 2,725,000 Warrants.

For details of the Notes and Warrants, please refer to the Company’s press releases dated May 14, 2009, May 25, 2009 and July 9, 2009.

All securities issued or issuable pursuant to the first tranche of the Private Placement are subject to a hold period expiring December 11, 2009. Proceeds of the Private Placement will be used by the Company for general working capital and continued development of its products.

The Private Placement is subject to the final approval of the TSX Venture Exchange.

US Patent Update for the MAT® – Mechanical Advantage Tourniquet

Pyng Medical has just received issue notice by the United States Patent and Trademark Office that our patent application for the MAT® will issue on 1 September 2009 as United States Patent No. 7582102.