Overview

The third quarter of fiscal 2008 was a period of substantial growth that increases the Company’s unique expertise in resuscitative care and dramatically enhances future revenue potential from product sales. Following the acquisition of three trauma products from BCI International, Pyng is now selling a complimentary portfolio of market leading products through an expanded international distribution network into large markets, including hospitals, emergency medical services and military forces worldwide. With our enhanced management team, we look forward to commercially launching CRIC™ Cricothyrotomy System upon receipt of US FDA clearance expected this fall, followed by our second generation FASTx™ IO System during the first half of 2009.

Pyng Medical Releases Strong Third Quarter 2008 Results

Pyng’s unaudited third quarter fiscal 2008 results for the period ending June 30, 2008, marked the Company’s seventh consecutive quarter of growth and profitability. Third quarter revenues of $1,624,967 exceeded the prior year period by 20%. Pyng also achieved two priority business development milestones during the quarter which significantly enhance the Company’s future revenue potential.

Pyng Receives US FDA, Health Canada and EU clearance for expanded Use of FAST1®

In May 2008, Pyng received regulatory clearance from the US Food and Drug Administration (FDA) and Health Canada for the expanded use of its proprietary FAST1® Intraosseous Infusion System to include adolescent patient populations, in addition to adults. FAST1® is also cleared for adolescent and adult use in the European Union (EU) through its CE Mark.

Pyng Expands Product Portfolio and Enhances Management Team

In June, 2008, the Company expanded its product portfolio by acquiring the trauma assets of California-based Bio Cybernetics International (BCI), including the market leading T-POD® Pelvic Stabilizer, MAT® Tourniquet and CRIC™ Cricothyrotomy System.

For more information, please visit our recently enhanced website at www.pyng.com.

Pyng Medical Enhances Distribution Network & Secures German Military Order

Subsequent to the quarter, Pyng shipped an initial order of 200 FAST1® Sternal Intraosseous Infusion Systems for use by the German military, transacted through a newly appointed regional German distributor, Weromed.

Pyng has recently added several additional leading European distributors including, Medicare Biomedizintechnik GmbH in Germany, Infiniti Medical in Sweden, and NGC in Italy. These three national distributors compliment an additional six new national distributors in Europe, as well as HUMED Co., Ltd in Asia and MEDDEC cc in Africa, resulting from the Company’s trauma asset acquisition in June of 2008.

In The News

The Return of Tourniquets, August 1, 2008, JEMS, Vol. 33, No. 8

Original research evaluates the effectiveness of prehospital tourniquets for civilian penetrating extreme injuries.

A literature review of scientific research published in a leading international trade journal demonstrates that tourniquets improve patient outcomes in prehospital civilian trauma care. To review the story featuring MAT®, please visit:http://www.jems.com/news_and_articles/articles/jems/3308/the_return_of_the_tourniquets.html.

US FY09 Defense Appropriations Bill

On July 30, Congressman John P. Murtha, Chairman of the House Appropriations Subcommittee on Defense, issued a news release summarizing the details of the $487.7 billion Fiscal Year 2009 Defense Appropriations Bill.

Highlights include:

• Increase of $28.4 billion above the F08 funding level
• Emphasis on “looking beyond Iraq” with additional resources available to prepare the military for future threats and conflicts
• $100 million for orthopedic research and treatment
• $150 million above the President’s request to supply equipment for both field hospitals and military medical treatment facilities
• $450 million for military medical treatment facilities
• Budget request for on-going operations in Afghanistan and Iraq

This enhanced commitment is good news for the men and women serving in the US Military, and further demonstrates this market is large and growing irrespective of any potential change in foreign policy. For more information, please visit http://www.pyng.com/wp/wp-content/uploads/2008/08/murthasubmarkup.pdf.

Enhanced Management & Sales Team

Pyng is pleased to announce the appointments of two former BCI executives responsible for the commercial acceptance of the acquired trauma assets. Julee Arbuckle has joined Pyng as the Product Specialist responsible for sales of T-POD® and MAT®. Julee has increased revenues from product sales of T-POD® and MAT® by approximately 30 percent annually since market launch in 2004 and 2005, respectively. Mr. Royce Rumsey, inventor and developer of CRIC™, has also assumed the position of Vice President, Business Development, responsible for the commercialization of CRIC™.

Royce has effectively combined product design acumen and marketing sensibilities to create, launch and support some of the most successful products, designs and brands in both consumer and medical product arenas. He has provided creative design and management services to some of the world’s largest companies and best known brands including Tonka Corp., Bandai Corp., Fischer-Price, Mazda Motors, Universal Pictures, NASCAR, and Penske Racing.

In addition, Pyng is pleased to announce that Nicole Ranger has been promoted from Engineering Manager to an expanded role as the Company’s Director of Product Development. Nicole has made significant contributions to the success of Pyng over many years through her masterful execution of past responsibilities with the Company’s lead clinical product.

Nicole Ranger is responsible for all product development, engineering projects, and intellectual property. A Professional Engineer, Nicole brings over 13 years of experience in product development, engineering, process improvement, and project management with almost 10 years in the medical device industry.

Pyng has also appointed its former European Sales Agent, Mr. Leonhard Braunizer, as the Company’s new International Sales Manager. Mr. Braunizer has considerable experience in overseas medical device markets, and conducts business fluently in multiple languages with a broad network of national and regional distributors. With an expanded product portfolio and almost 20 distributors worldwide, Leonard’s unique expertise will facilitate rapid expansion in our overseas markets.

International expansion is fundamental to Pyng’s continued strategic growth and diversification initiatives as the Company continues to commercialize multiple complimentary trauma and resuscitation products for several large and emerging markets.

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