PRESS RELEASE

MedChannels to Open Regional Distribution Hub

LAS VEGAS, NV, Dec. 02, 2006 /PRNewswire-FirstCall/ -- MedChannels, a state of Ohio limited liability corporation, announced yesterday that they will be opening a regional distribution hub in Columbus, Ohio.

MedChannels, an emerging life science commercialization company, and ApotheTech International, a premier provider of Integrated-Distribution and Logistics Automation for the healthcare industry, today announced the opening of the Great Lakes Logistics Hub at ApotheTech's production facility in Columbus, Ohio. This strategic partnership, which involves an innovative supply chain process – - the first of its kind for the industry - - will handle all of MedChannels domestic logistics requirements.

Martin James, President, MedChannels, commented: "The U.S. is a key growth market for MedChannels. The setting-up and opening of our logistics hub in Ohio is a complete overhaul of the MedChannels supply chain, maximising our efficiency whilst allowing us to be more flexible and responsive to meet the needs of a diverse and growing market. We are extremely impressed by ApotheTech’s capabilities, track record and their approach to our needs. They are an ideal partner for MedChannels and we have found synergies in our corporate values and culture. Ohio’s many strengths - – its infrastructure, skilled workforce, geographical location and strong history of medical research - – made it the region of choice over its many competitors for managing the logistics side of our business in the eastern U.S."

Martin James, Group Managing Director of ApotheTech, added: "This regional hubbing service for MedChannels demonstrates ApotheTech’s strength in offering customised regional logistics and supply chain solutions to customers. Our state-of-the-art Automatic Storage and Retrieval System (ASRS) technology is ideally suited for quick-response hubbing and value-add regional supply chain services. The flexibility we are able to offer ensures that MedChannels can respond rapidly to demand and future growth. We see this as the first stage in a long-term, successful relationship that will develop along with MedChannels expansion."

The MedChannels Logistics Hub makes use of the leading edge technologies available from ApotheTech, such as the advanced ASRS and digital imaging capabilities, as well as its controlled substance-bonded area and temperature-controlled zones, to improve process efficiencies and ensure the quality of the products. As a result of the new facility, average product lead-times for MedChannels products, from production through to point-of-sale, will be cut from 8-10 weeks down to 1-3 weeks.
The facility will store MedChannels inventory to the value of $20 million USD and will complete the final market-specific labelling and packaging (known as postponement) at the last moment on bespoke, high-speed, semi-automated production lines. This will allow one-off initiatives – - such as small volume, formulation packaging and labeling - – to be rolled out quickly and to a high standard. Postponement is a common supply chain process for the electronic industry and some parts of the Fast Moving Consumer Goods (FMCG) industry; however this will be the first supply chain of this type for the life science research industry.

MedChannels will have a dedicated production hall for the automated labelling and finishing of its products, using equipment and operating processes tailored by ApotheTech for MedChannels.
ApotheTech, incorporated in 1993 with headquarters in Columbus, Ohio, is a pioneer in automated supply solutions for the healthcare industry. As the only privately held corporation still in existance offering automated supply solutions for the healthcare industry, ApotheTech continues to enhance its reputation as the premier partner focused solely on automating the healthcare supply chain.
MedChannels, with headquarters in Las Vegas, NV, is a leading provider of life science development and commercialization services, Its principal activities are to provide integrated product development and commercial enrichment solutions to the pharmaceutical, biotechnology and medical device industries. The Group operates in three business segments, namely Product Development, Commercialization Services and the Informatics group. The Product Development group is primarily responsible for all phases of pre-clinical and clinical research. The Commercialization Services group is primarily responsible for sales force deployment and strategic marketing services including healthcare policy research and consulting services. The Informatics group is primarily responsible for providing market research solutions and strategic analyses to support healthcare decisions.
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Statements in this release concerning expectations for the future are forward-looking statements. A variety of known and unknown risks, uncertainties and other factors could cause actual results, performance and expectations to differ materially from anticipated results, performance or expectations. These risks, uncertainties and other factors are discussed in the company's annual report and other documents filed from time to time with the appropriate regulatory agency.

http://tbutton.prnewswire.com/prn/b1690X77317545
SOURCE: MedChannels, Inc.
Web site: http: //www.medchannels.com
CONTACT: John Davidson, Investor Relations of MedChannels, Inc., +1-614-730-1345

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