BOYNTON BEACH, Fla., Nov. 12, 2003 (PRIMEZONE) -- Harvey Grossman, President and Chief Strategic Officer of Jacobson Resonance Enterprises, Inc. (OTCBB:JRSE), announces today an exciting new joint venture with The CSB5 Management Company, Limited, in New Providence, Nassau, Bahamas, that we believe will tap into a $300 Billion+ worldwide market space in pain management and the leisure/spa arena. This joint venture, "Magnetic Resonance Therapy, Bahamas, Limited" is scheduled to open this December. These projections are based on our rebuilt management team's current analysis of market trends. The projections flow from our newly identified target markets, reasonable time lines for execution, and a growing scientific and technology base. We believe that our business model for 2004 and 2005 is important as this acts as a launch pad for subsequent success.
The principles in this venture include Dr. Conville Brown and Dr. Corrine Sin Quee, located on the campus of the new Bahamas Heart Center Expansion, the Centereville Medical Pavilion. Preliminary plans have been outlined for a second center to be located in Freeport, Grand Bahama. The Nassau collaboration enables JRSE to treat patients as an adjunct therapy in a world-class, state-of-the-art, integrated medical center. This medical center is comprised of a Comprehensive Cardiac Center, including the Bahamas Heart Center, a Comprehensive Cancer Center, including Radiation Therapy Services Bahamas, Ltd., Medical Oncology Associates, and the Chemotherapy Center (operated by staff from The Detroit Medical Center), our joint venture, Magnetic Resonance Therapy, Bahamas, Limited and other adjunct and complementary modalities such as acupuncture, hyper-baric treatments, nutritional counseling, and more.
JRSE's commercial focus will begin in the pain management area and the leisure/spa arena that broadly includes relaxation and rejuvenation. Patients and clients will be drawn from the local population, tourists visiting Nassau from around the world, the Caribbean Basin and the United States and Canada. In Nassau, we will be able to treat and work towards mitigating the effects of a wide range of ailments, syndromes, diseases and disorders. Various case-controlled and double blind clinical studies are being planned.
The Company plans call for additional clinical treatment centers throughout the Caribbean Basin and in leisure settings in hotels, resorts, spas, cruise ships and more.
Quoting Dr. Jerry I. Jacobson, Chairman, Chief Executive Officer and Chief Science and Technology Officer of JRSE; "The founding of this company represented the open door to research and practical application of my life's work for the betterment of humanity. The expansion of operations to the Bahamas represents the actual progression to clinical research opportunities as broad and encompassing as my dreams, and with this the advantage of penetration to commercial markets allowing access to those suffering the human condition, as well as the enhancement of shareholder value. To all those who believed in the promise of our technology, I promise to dedicate my energies towards the development of the science and technology to fully realize and fulfill our mutual aspirations."
Breakout Of Worldwide Commercial Initiatives
The foundation for our projected commercial success in the first couple of years would be based on worldwide initiatives (except in the USA) in pain management and the leisure/spa relaxation and rejuvenation arenas. In the Bahamas both arenas are open to our patented technologies.
JRSE Revenue Projections For The Bahamas Joint Venture
In US Dollars For 2004 - 2008
2004 2005 2006 2007 2008
Bahamas Joint 235,378 4,290,000 5,148,000 6,177,600 3,432,000
Venture/
Treatment
Centers (Note 1)
Illustration -- Chronic pain has been said to be the most costly health problem in America according to NewsRx.com, the American Pain Foundation, National Institute of Neurological Disorders and Stroke and the Bureau of National Affairs. Approximately seventy (70) million Americans suffer from chronic pain from all causes. It costs America about $100 billion annually. These annual costs include forty (40) million doctor visits and five hundred and fifteen (515) million lost workdays. The statistical percentages for chronic pain sufferers in the European Union and associated nations (23 nations with 600,000,000 people) match the USA. Therefore, in Europe we estimate that approximately 152,000,000 people suffer from chronic pain at an annual cost of about $218 billion.
Our goal at JRSE is to penetrate 3% to 5% of this $300 billion+ chronic pain market segment within ten years. (Note 2)
Illustration -- The Leisure/Spa Industry provides an interesting and lucrative opportunity on a global basis (except in the USA) for Jacobson Resonance technologies. A good deal of the services provided at leisure resorts, hotels, spas and cruise ships deal with relaxation and rejuvenation. According to the American Massage Therapy Association a total of 18% of the adult population in 2002 had a massage. Among people who had experienced severe back, neck or shoulder pain, the rate of massage therapy increased from 14.6% in 1996 to 19.4% in 1999. Among Fortune 200 companies, 14% offer massage as part of their employee benefit program. In the USA alone there are about 275,000 massage therapists who generate about $5 billion in revenues annually. In Europe medical and rejuvenation spas dot the landscape and are often visited as part of vacation time. We estimate that massage therapy alone in Europe generates about $10 billion in revenues. JRSE has submitted a 513(g) application for the non-medical application of our technology for "Non-Invasive Resonator System For Relaxation."
Throughout the world, using our patented Magnetic Resonance Therapy (MRT) in Institutional Review Board approved clinical research projects, and more particularly in clinical settings in Europe and Canada, thousands of people have reported profound and long-lasting relief from pain whatever the cause. Many clients reported quality of life restored. Along with profound pain relief, the overwhelming majority of research subjects and clinical clients report a deep sense of relaxation, and as days passed, many felt rejuvenated. This relaxation market is open to JRSE throughout the world in the Spa/Leisure industry including the Caribbean, most likely in Europe and Canada and on the high seas. Upon FDA clearance in the USA, certain segments of this relaxation arena may be available to apply our breakthrough technology.
Once again, the goal at JRSE is to penetrate 3% to 5% of this $15 billion (minimum, massage only as an example) relaxation and rejuvenation segment within ten years. (Note 2)
JRSE is an emerging worldwide leader in magnetic resonance technology, whose main focus is the eradication of human suffering. The Company's technology base has the potential for multiple industry applications including the fields of medicine, spa and leisure arena, food and beverage, pharmaceuticals, energy and the environment.
Note 1: Although we believe that our treatment center(s) in the Bahamas will become a destination for patients from all around the world seeking therapies to be offered, there is no assurance that our revenue projections will be fully realized. We also are, to some extent subject to the performance of our partner, the operator of the clinic of which our treatment center is a part.
Note 2: Although we have set what we believe is a responsible goal there is no assurance that we will achieve this anticipated market penetration. We recognize that there is competition in this marketplace, and that to achieve our goal, we will need to establish significant revenue streams to avoid the need for additional funding, as well as FDA, EU and Health Canada clearances for certain applications of our resonator technology.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters covered by such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to differ materially from those contemplated or implied by such forward-looking statements. Included in these risks and other factors are funding availability, competition from better-funded companies and required regulatory clearances. For further information, contact Harvey Grossman at (561) 752.4141.