News is out:
Thursday February 25, 7:48 am Eastern Time
Company Press Release
SOURCE: National Boston Medical
National Boston Medical Acquires Flex Marketing; Profitable New Subsidiary Brings Highly Successful Consumer Product
TAUNTON, Mass., Feb. 25 /PRNewswire/ -- National Boston Medical (OTC Bulletin Board: NBMX - news) announced that it has acquired Flex Marketing, Inc. (FMI), a product development and marketing firm headquartered in Canfield, Ohio.
FMI has developed or obtained the marketing rights to several consumer products with strong market potential in the healthcare, fitness, and recreation markets. It currently markets an innovative new product known as the Backstroke® back massager.
The Backstroke is an award-winning product that has been endorsed by the World Federation of Chiropractic and featured on television infomercials and fitness programs nationwide, including FoxSport (Fit TV) and QVC.
The product has consistently yielded high returns from advertising dollars, in ratios exceeding 2.8 to 1. ''These far exceed industry norms of 1.3-1.9 to 1,'' said Flex Marketing president, Ernest Zavoral, who will remain as head of the new subsidiary, ''And there is still room for improvement.''
The company is presently spending more than $50,000 per week on television advertising, with unlimited media funding available from Media Funding Corporation, as test markets prove successful and the company is able to fill demand. The company plans to introduce the Backstroke to the retail market in 12-15 months.
The Backstroke is a body massager and healthcare device designed by a chiropractic physician. It provides valuable muscle stimulation, enhanced circulation, and therapeutic accupressure throughout the back and torso.
Its unique benefits are derived from 28 specially designed ball-shaped foam massage elements mounted on a sturdy 18x36-inch polymer frame. The device is placed horizontally on the floor, where the user lies on his back and rolls back and forth.
The elements vary in size and firmness, and are placed in a specific pattern in order to provide the correct stimulation and accupressure throughout the entire back. The unit includes an adjustable neck support roller, comfort cushion and videotape instruction.
''Flex offers a tremendous opportunity for NBM to realize immediate revenues and profits from this popular, highly respected healthcare product,'' said Daniel J. Hoyng, president of NBM. ''And we picked them up at an ideal time, after they dramatically reduced unit cost and initiated a new national marketing campaign -- allowing the product to reach a broader demographic and return to high-profile venues such as QVC, while maintaining attractive margin levels.''
In 1997, the Backstroke was awarded the Silver Medal at INPEX XIII, America's largest invention trade show. The show featured more than 1,500 products from 30 countries.
The patented Backstroke is the only therapeutic product that provides complete accupressure and stimulation of circulation in the back -- two key factors in effective massage therapy. It is offered for the unbeatable list price of $59.95, as compared to competitive systems that sell for $200-$500. Recent design improvements and changes in manufacturing have dropped unit cost by more than half.
Success of the Backstroke may be largely tied to its vast and growing market. More than 130 million Americans suffer from back pain, and according to the statistic published by Metropolitian Life Insurance Company, as many as four out of five adults complain of back pain at some point in their life. The MET Life report also states that 20% of American workers suffer at least one week of back pain annually. Some 54% of primary-care physicians and family practitioners said they would encourage their patients to pursue massage therapy as a complement to medical treatment.
These factors help explain why Americans spend more than $2 billion annually on visits to massage therapists, while back pain remains the single most costly type of occupational health disorder in terms of lost wages, absenteeism, insurance claims and medical bills.
The ''graying of America,'' coupled with an increasing level of activity among all Americans, is making massage-related consumer products the fastest- growing segment of the personal care industry.
National Boston Medical is a distributor of quality healthcare products. Its Medical Advisory Board consists of some twenty-five award-winning medical professionals. NBM is the exclusive provider of Bontempi instruments in North America -- general and specialized instrumentation for the dental, medical and veterinary fields. NBM is also the developer and marketer of SAFESHIELD(TM), a topical polymeric barrier that can replace the need for latex gloves or frequent hand washings. NBM markets Vertason and VertaVac, environmentally friendly enzymatic cleaning solutions for use in the dental industry.
For further information, visit the company's web site at: nbmedical.com.
Company contacts: Daniel J. Hoyng, president of NBM, (877) 628-5267; Ernest Zavoral, president of Flex Marketing, (330) 533-9642; Len Harris or James Dryer, investor relations, (561) 655-7575, fax (561) 655-2171, e-mail: jamesdryer@aol.com.
This press release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Although such statements are based on reliable information and past experience, operating results are affected by variety of factors, many of which are beyond the control of the Company. These factors include the levels of order which are received and can be shipped in a quarter; whether and when order options are exercised; customer order patterns and seasonability; contract mix and shifting production and delivery schedules; manufacturing capacity and yield; cost of labor, raw materials, supplies and equipment; technological changes; competition and competitive pressures on pricing; economic conditions in the United States and worldwide, as well as other risks that are detailed from time to time in the Company's filings with the Securities and Exchange Commission. |
