Medical Services International Inc has signed a non exclusive patent license agreement with the United States Public Health Service covering production of and detection of Antibodies to HIV-1. Completion of this agreement is the crucial first step in the approval process for the VScan HIV test kits in the United States. Medical Services will continue with the necessary steps for full regulatory approval in the United States.

In conjunction with the process for approval in the United States, the Company is also in active discussions with potential marketing partners in the United States.

To date the Company's sales and marketing activity has been focused exclusively on the registration and licensing of the VScan products in developing countries, with excellent results. Even though not required, the Company feels that its international marketing efforts will be further enhanced by registration and approval of the product in the United States.

The VScan rapid test kit is a single use, disposable, accurate (greater than 99%), cost effective, easy to use, test for rapid screening of HIV1&2 and subgroup O, Hepatitis B&C, and Tuberculosis (TB). The kits cannot be sold in Canada.