Medical Services International Inc has received the independent test results back from India. The test results showed that the VScan rapid test kit for HIV 1&2 was 100% accurate. Based on the results obtained in the independent testing, the Company's Exclusive Sales Agent in India -- Global Connect Technologies has signed a distributor agreement with a large pharmaceutical company with an excellent distribution network throughout India.

Based on their own initial market research results, the results of the testing of the VScan test kit and the ease of use of the VScan test kit, they estimate that the market potential for the VScan HIV test kit is 1,000,000 test kits per month.

The registration process in India is going smoothly. The endorsement of the pharmaceutical company and their independent testing will be very helpful in this process. Medical Services anticipates that the process can be completed within 45 days.

The VScan rapid test kit is a single use, disposable, accurate (greater than 99%), cost effective, easy to use, test for rapid screening of HIV 1&2 and subgroup O, Hepatitis B&C, and Tuberculosis (TB). The VScan rapid test kit produces results in under 15 minutes which are easy to interpret without medical or skilled personnel. The VScan test kit requires no refrigeration or electricity and can safely be stored at room temperature. A built-in control mechanism ensures the integrity of the kit. The kits cannot be sold in Canada.