BioMS reports consolidated net income of $6.5M for first-quarter 2010 compared to net loss of $3.8M in 2009

BioMS Medical Corp. (TSX: MS), today announced financial and operational results for the three months ended March 31, 2010.

"Our new strategy is to transition BioMS into an investment and advisory service provider for the healthcare industry and pursuant to this strategy we completed our first strategic investment in Spectral Diagnostics," said Kevin Giese, President and CEO of BioMS Medical. "We continue to evaluate numerous opportunities that could benefit from access to our capital resources and expertise, and were pleased to announce the addition of Nitin Kaushal to our team to help accelerate these activities and ensure our transition is successful."

Highlights:

- Subsequent to the end of the quarter, on May 3, 2010, the Company announced a strategy to become a service provider to the healthcare industry whereby BioMS will directly invest in and advise companies on strategy, financing, mergers & acquisitions (M&A), licensing transactions and undertake technology development. - The Company also announced it had hired Mr. Nitin Kaushal, a leading healthcare investment banker, to implement the Company's new strategy. Mr. Kaushal brings more than 25 years of financial and investment experience to BioMS and will serve as its Executive Vice President and Managing Director. - BioMS announced it intends to change its name to Medwell Capital Corp. subject to approval by the Toronto Stock Exchange and shareholders at the annual general meeting to be held on June 25, 2010. - In the first quarter, the Company completed its first investment, acquiring 30,000,000 common shares of Spectral Diagnostics Inc. ("Spectral"), representing 39.57% of its issued and outstanding common shares, and concurrently acquiring 15,000,000 common shares purchase warrants of Spectral as well. - As part of its new strategy, the Company entered into a three year services agreement with Spectral and will provide clinical, regulatory and capital markets consulting services in exchange for $3 million paid to BioMS over the term of the contract. - On March 3, 2010, Spectral received Investigational Device Exemption (IDE) approval from the U.S. Food and Drug Administration (FDA) for Toraymyxin(TM), a treatment for severe sepsis. This approval permits Spectral to initiate its planned pivotal trial for Toraymyxin(TM) in the United States. - Certain employees, officers and directors of BioMS Medical acquired 7,245,000 BioMS shares out of 12,915,365 sold by the University of Alberta on April 30, 2010.

Financial Results

BioMS is reporting results from both continuing and discontinued operations. Continuing operations consist of activities related to its new strategy of transitioning BioMS into an investment and advisory service provider to the healthcare industry. BioMS' discontinued operations relate to the late stage clinical development program for dirucotide, a drug for the treatment of multiple sclerosis.

The consolidated net income from continuing operations for the three months ended March 31, 2010 was $6.5 million or $0.07 per share compared to a consolidated net loss from continuing operations of $3.8 million or $(0.04) per share for the same period in the previous year.

Revenue earned from the services agreement initiated with Spectral during the quarter amounted to $0.3 million for the three months ended March 31, 2010. Interest income earned on funds invested was $0.03 million for the three months ended March 31, 2010, compared to $0.2 million for the same period in the previous year, due to the decrease in cash and cash equivalents. Total consolidated expenses for the three months ended March 31, 2010 were $2.3 million compared to $4.0 million in the three months ended March 31, 2009.

The consolidated net loss from discontinued operations for the three months ended March 31, 2010 was $0.2 million or $(0.01) per share compared with a consolidated net income from discontinued operations of $2.4 million or $0.02 per share for the same period in the previous year. Upon the conclusion of the MAESTRO-01 clinical trial the Company discontinued the other dirucotide clinical trials, MAESTRO-02 and MAESTRO-03, and completed final collection of data and records.

At March 31, 2010, cash and cash equivalents and short-term investments totaled $34.7 million as compared to $51.4 million at December 31, 2009. At March 31, 2010, the Company had working capital of $33.7 million as compared to $47.5 million at December 31, 2009. Management estimates that the current working capital is sufficient for the Company to meet its obligations.

As at March 31, 2010 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.