Pyng Medical Corp

Financial Results

We have just released our strong mid-year unaudited results for fiscal 2007, covering the period from October 1, 2006 to March 31, 2007. Pyng achieved record sales of $2.1 million, an 85% increase over the previous year. Our gross margin improved to 70.5% of sales, an increase of 3.5 percentage points over the prior year first half. We increased our operating expenditures by $302K, reflecting our increased commitment to marketing and product development; this is a decrease of 14 percentage points relative to sales. Due to our strong sales and improved gross margin and operating expense ratios, our income for the first half was $227K, 11% of revenue, 2.3 cents per share.

Our working capital position at mid-year remains strong at $1,258K, with cash flow from operating activities of $458K. Earnings before interest, taxes, depreciation and amortization were $455K, or 22% of sales. We have a $500K unutilized line-of-credit and we are debt-free.

We are pleased with our strong financial results and believe that our revenue growth reinforces the strength of our core product: FAST1™ Intraosseous Infusion System. Our diversification strategy is working, with the US now representing 91% of our total year-to-date revenue, versus 97% in our prior year first-half. Our UK distributor is now our third largest distributor with sales from the UK Ministry of Defense, and our major US distributor now represents only 73% of our total world-wide sales.

Full financial results are available on SEDAR.

FAST1™ Expands Into Asia

Pyng established our first Asian distributor in the fall of 2006 with MidMed Pty in Australia, which is realizing sales in all markets. In January, we retained Business Asia Consultants (BAC) as our contract region manager to expand into twelve of the continental Asian countries, including China and Japan. We contracted with Jyton to pursue our regulatory filing with the Chinese regulatory agency, which is a process that will complete in late 2007.

Larry Kronick, principal for BAC, reports that initial sales are expected in our third quarter with his established distributors in those countries that allow rapid regulatory clearance. Once Asian sales are established we will look to further expansion, likely in Latin America.

StarFish Medical Engaged to Create Next Generation Products

StarFish Medical is an established and diversified medical device design firm that offers development, prototyping and low-volume manufacturing services worldwide from their facility in Victoria, BC. StarFish has received a mandate from Pyng to create the next generation of intraosseous infusion products that will keep us a frontrunner in IO innovation.

The design team at StarFish has been on the road meeting with end-users in all of our markets – hospital, emergency medical services, and defense. By soliciting their input, we are benchmarking against the competition, learning more about our own strengths and weaknesses, and understanding the challenges faced by the people who perform our life-saving procedure.

We also conducted our first Clinical Focus Group in Salt Lake City with thought-leaders who will continue to participate with Pyng as our medical advisory group. A recent sneak preview of our design concepts with a prospective distributor was well-received and reinforced the significant opportunity yet to exploit in our emerging intraosseous infusion market. Pyng will create new intellectual property through this process and file globally for new patents, while creating a product line to surpass anything currently available.

Strategic Planning Process

The Pyng management team left the premises for two days in late February for the second of three meetings to flesh out the details of our strategic plan. In mid-April we held the last of these meetings and finalized our plans to move the Company forward. Our expansion plans include diversification by product, clinical markets, and geography.

Intraosseous infusion is a growing and healthy industry to be in today. The FAST1™ is central to the resuscitative care of patients and provides a logical foundation around which to build a suite of products. Our intention is to leverage our strong core product and our very successful domestic and international distribution to become a world class company in the field of resuscitative care.

Customer Service and Distributor Support Launched

Pyng has created a new function for support of our distributor and end-user customers. In February we hired Katherine Mitchell, whose strong sales, service and administrative background prepares her well for the task at hand. Katherine is establishing a pro-active approach to supporting our distributors with lead generation, trade show support and by providing 9:00 – 5:00 service in all North American time zones. We believe that customer focus is key to our success, and with Katherine on board we are now able to deliver the support they need.

Clinical Director of Education Joins Pyng

We also added the new position of Clinical Director of Education, filled by Cindy Wells. Cindy’s high quality credentials and experience as an emergency medical services educator enable her to excel in bringing awareness and in-depth knowledge to Pyng’s end-users and our distributor sales force. This is a critical step in ensuring that the high quality of our product is well represented by our distribution sales force, and that our end-users receive high quality education and training.

Cindy has already completed our new education manual, trained many of our distribution sales people, and injected her infectious enthusiasm into the task of spreading the news on “IO”. People know that “IV” refers to intravenous infusion; we want “IO” to be just as routinely recognized for intraosseous infusion, and for FAST1™ to be the brand of choice.

QIS Capital Retained for Investor Relations

Doren Quinton of QIS Capital has been retained to tell the Pyng story to the micro-cap investment community, which we did at the annual Small Cap Conference at the Vancouver Trade and Convention Center on March 31. David Christie, President and Chief Executive Officer presented to a room full of engaged prospective investors. The results of this activity are evident in the increased trading volume and share price appreciation, as sophisticated investors learn why Pyng may be their best micro-cap investment value. See the presentation online.