PRESS RELEASE

MedChannels to Open Regional Distribution Hub in Texas

LAS VEGAS, NV, Aug. 20, 2006 /PRNewswire-FirstCall/ -- MedChannels, a state of Ohio limited liability corporation, announced yesterday that they will begin buildout of a new warehouse and regional distribution hub in San Antonio, Texas. This latest hub, joining one that the company opened in 2004 in Columbus, Ohio, will become MedChannels southwestern regional hub.

MedChannels President Martin James said the setting up of the Texas regional hub was aimed at concentrating its activities in the fast-growing southwestern region. "We are increasing our investment in new plants, partnerships and service sites and are implementing the regional hub in Texas as a common homebase for the control of our activities in the region. The implementation of this hub is our acknowledgement of this important growth area domestically and this expansion enables us to address growing customer and distributor needs more quickly and efficiently. Specifically, the new facility allows us to offer more products and services closer to the sites we need to service."
Managed by the Product Development group, a shared sales and service platform is being set up that will grant customers easier access to MedChannels products on a global scale. The concept promotes a distinct presentation for the brand, together with an enduring improvement for brand presence. Last year, the first distribution hub was inaugurated in Columbus, Ohio. The company plans to establish further bases in other growth regions during the next few years, including prospective sites in China and India.
MedChannels is a leading provider of life science development and commercialization services and has regional distribution hubs in Columbus, Ohio with headquarters in Las Vegas, NV. 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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