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Simulated Environment Concepts, Inc. (SMEV.PK) Announces Anticipated European Sales Increase as French Distributor Exceeds Expectations

Simulated Environment Concepts, makers of the high pressurized dry water massage and relaxation station SpaCapsule, today told investors that its French distributor may outpace estimated distribution schedules for the 250+ capsule production and distribution deal inked at the close of 2009.

“We are preparing our third shipment of SpaCapsules to Zen & O,” stated Dr. Ella Frenkel, Chairman and CEO of Simulated Environment Concepts, Inc (SE Concepts). “This is a strong indication of the SpaCapsule’s success in France, not only as a highly seductive relaxation vehicle, but as a well regarded tool to aid in weight loss and cellulite reduction.”

Zen & O, which wanted to test the waters first, seems to already be taking a swim. The French distributor’s roll out schedule for 2010 initially consisted of only 25 of the 250+ units, but at the current pace will double the distribution estimate. This pace would put sales estimates well over 100 machines in 2011.

Stephan Tournier, President of Zen & O, commented, “We are very happy with the opportunity to work with SE Concepts by distributing the SpaCapsule in France. We have generated a significant amount of interest in just six months, and we’re just getting started.”

“We have successfully begun to install the SpaCapsule within the Lady Fitness Franchise in Paris, Lyon, and Luxembourg,” Mr. Tournier continued. “Weight loss and cellulite reduction is big business here. Within our health and fitness circles, the SpaCapsule is seen as a post workout apparatus that both relaxes and calms the mind and body while continuing to effectuate weight loss and tackle undesired cellulite. Response from our clientele, and particularly women, has been overwhelmingly positive.”

Tournier concluded, “We have also been successful at placing the SpaCapsule in many of the prominent malls around France and intend to increase our scope of distribution after attending one of the year’s largest pan-European cosmetic shows in October.”

At the current pace, SE Concepts could realize the total value of its multi-million dollar agreement with Zen & O up to a year earlier than expected — potentially increasing yearly cash flows from this contract significantly. The company also believes that a similar situation could play out with their new UAE distributor, I. SEPTA Co., LTD.

Dr. Ilya Spivak, Marketing Director at SE Concepts, said, “We’re planning on pulling out all the stops. We will diligently strive to not only accommodate the increase in production capacity at our Miami factory but to achieve greater financial benefit in the process. We are hiring new assembly personal, increasing our inventory levels and making considerations toward additional means to produce an even higher quality product, faster and at lower cost. Ultimately, we will be able to expedite the shipping of new orders which will assist us in securing the current market penetration we’re enjoying abroad.”

SE Concepts has maintained a steady sales pace while focusing on fortifying its business model. With approximately 60 orders in the pipeline, and less than a third of those belonging to Zen & O, SE Concepts anticipates possibly exceeding its 2010 milestone while looking forward to a very prosperous 2011.

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