FEATURED COMPANY

EQ LABS INCORPORATED (OTC: EQLB)

Detailed Quote: www.otcpicks.com/quotes/EQLB.php

Company Profile: http://www.otcpicks.com/eq-labs.htm

Headquartered in Las Vegas, NV, EQ Labs, Inc. manufactures and markets the EQ Smart Energy Drink®, which is an effervescent tablet that provides an instant energy drink once added to any beverage. Consisting of a blend of essential vitamins, a single tablet of EQ Smart Energy Drink® (containing no sugar and only 5 calories per serving) is the equivalent of one can of any competing energy drink on the market. EQ is sold in packets of one single tablet or 3-inch tubes of six tablets, and no refrigeration is required. A single tablet or 3-inch tube containing six tablets can be transported in a pocket or purse, and is immediately ready for use. The company presently distributes its products through national and regional distributors.

EQLB News:

May 14 - Over 500,000 Potential Consumers Exposed To EQ Smart Energy Drink

EQ Labs, Inc. (OTC: EQLB) launched its internet-based product promotion campaign, issuing a news release titled, “EQ Labs, Inc. Offers Free Samples of Its Innovative Smart Energy Drink®.” Based upon site statistics, visitor traffic to the Company’s corporate web site increased almost one thousand percent during the twelve hours following the launch of this marketing campaign. The news release invited readers to visit the company’s web site and register to receive a free sample of the EQ Smart Energy Drink® (effervescent) tablets in a three-inch tube that contains 6 tablets. The free samples were restricted to only the first 1,000 people to register.

“Needless to say, we received our initial 1,000 requests within the first few hours after the news release was published,” stated Chris LaFrinere, the information and technology manager at EQ Labs, Inc. “This marketing campaign exceeded our expectations, and was definitely a huge success. The company is making an effort to mail the tubes of EQ to these individuals within the next 30 days,” he went on to say.

“During the month of April, we had approximately 84,250 unique visitors come to our corporate web site, yet, within a matter of less than twelve hours after the introduction of our free sample marketing campaign, we experienced over 775,000 hits to our site. From that traffic, we had over 7,000 visitors actually register at www.drinkeq.com for the free sample.” LaFrinere continued, “We’ll have other on-line promotional activities later this summer for everyone who registers at our site as we introduce three new flavors and announce new point-of-sale locations. This database of registered users will enable us to communicate directly to potential consumers, informing them of upcoming corporate developments and when EQ becomes available in their geographic areas.”

FEATURED COMPANY

ADVENTURE ENERGY INCORPORATED (OTC: ADVE)

Detailed Quote: http://www.otcpicks.com/quotes/ADVE.php

Company Profile: http://www.otcpicks.com/adventure-energy/adventure-energy.htm

Adventure Energy, Inc., is an independent energy company principally engaged in the acquisition, exploration and development of mature long-lived oil and natural gas properties. The company's current operations are concentrated in the Appalachian Basin within the states of Kentucky and West Virginia.

ADVE News:

May 13 - Adventure Energy, Inc. Acquires Additional Leaseholds in Kentucky

Adventure Energy, Inc. (OTCBB: ADVE), an energy exploration company with operations in the Appalachian Basin, announced today that the Company has acquired two additional oil and gas leases, totaling 373 acres, in Kentucky.

The Company will maintain a 100% working interest, 87.5% net revenue interest in each of the 33 acre and 340 acre tracts located in Greene county and Monroe county respectively. The acquired leaseholds are in close proximity to the Company's current drilling programs. With conservative spacing estimates, the Company projects that it will be able to drill up to 20 wells on the newly acquired leaseholds.

“We are pleased to announce the expansion of our oil and gas acreage position in Kentucky,” said Wayne Anderson, President of Adventure Energy, Inc. “Our position in this highly productive resource play is well situated among both productive and highly prospective acreage. If anticipated down-spacing occurs, our exposure grows significantly. We expect to begin developing this acreage in the next 90 days, and are excited to add this leasehold to our portfolio of producing properties.”

FEATURED COMPANY

GREEN STAR ALTERNATIVE ENERGY INCORPORATED (OTC: GSAE)

Detailed Quote: www.otcpicks.com/quotes/GSAE.php

Company Profile: http://www.otcpicks.com/Newsletter/GSAE_eProfile_091708.htm

Green Star Alternative Energy is an environmentally conscious, renewable energy producer. The Company is working to develop more than 300 MW (megawatts) of clean electricity through wind energy. The corporate revenue model is two-fold: the use of a renewable resource allows not only for the creation of environmentally friendly energy, but the granting of carbon (greenhouse gas) emission credits which may be traded and sold. Green Star is pursuing a significant opportunity to provide clean energy to the growing Republic of Serbia and neighbouring European countries. Through a joint venture with key wind farm and power trading company Notos, Green Star will become the nation's first developer of wind power. GSAE is focussed on green technology and sustainable energy programs like wind turbines, hydro electric power generation, and other renewable electricity models.

GSAE News:

May 13 - Small Cap Sentinel: From Barack to Belgrade

The winds of change in alternative energy are clearly not limited to the continental United States, with President Obama's Inaugural Address declaration, “We must harness the wind,” resonating far and wide. Now, it appears that powerhouse General Electric Co. (NYSE: GE) is interested in harnessing the winds of Southeastern Europe.

According to a recent release from Green Star Alternative Energy, Inc. (OTC: GSAE), General Electric's GE Energy Development Group is pursuing talks with Notos, the Serbian company in a wind development joint venture with Green Star in Serbia. This represents a strong forward step for an American business icon in a country seemingly eager to find Western investment and new sources of revenue. For Green Star and Notos, it's a powerful move toward entrenching them as leaders in the wind energy space in Serbia and beyond.

Green Star has made significant efforts to bolster its Serbian credentials in recent months, announcing negotiations for a 60 MW wind energy partnership project, and potentially other future projects with Vintim d.o.o., a private Serbian wind research company, and adding veteran Serbian businessman Mike Andric as CEO and Chairman. Now, with GE Energy in talks with Notos, that joint venture partner seems to have been the right strategic move for Green Star.

Green Star Alternative Energy is an environmentally conscious, renewable energy developer. The Company is working to develop more than 300 MW (megawatts) of clean electricity through wind energy. The corporate revenue model is two-fold: the use of a renewable resource allows not only for the creation of environmentally friendly energy, but the granting of carbon (greenhouse gas) emission credits which may be traded and sold. Green Star is pursuing a significant opportunity to provide clean energy to the growing Republic of Serbia and neighboring European countries. Through a joint venture with key wind farm and power trading company Notos, it will become the nation's first developer of wind power.

May 12 - General Electric in Discussion With Notos on the Green Star/Notos JV Projects in Serbia

Green Star Alternative Energy, Inc. (OTC: GSAE) announces negotiations with 'GE Energy' Development Group for South East Europe. Executives from 'GE Energy' met with Green Star's Serbian partner — Notos — in Belgrade for an exchange of experience and knowledge in the area of wind data collection, and to consider the future of wind power development in the Republic of Serbia.

The two day meeting was initiated by GE and organized within the context of the GE 'Strategy for South Eastern Europe.' The appropriate and skilled expansion of wind energy into the South East European electricity market was the foremost topic on the agenda. This focus will provide the foundation for GE to work in partnership with Notos in establishing the necessary framework for the development and execution of future alternative energy projects.

GE intends to do so specifically "... by increasing the cooperation between experts from GE and Notos in evaluating and organising the platform from which the projects will be executed. This shall be achieved with close cooperation with the Serbian government and Ministry of Energy." Mr. Neven Pecotic, Director of the GE Energy Development Group for South East Europe, elaborates, "After several years of preparatory activities and cooperation with the Balkan State Members, GE has been instrumental in helping them develop balanced national energy strategies, set up inter-ministerial coordination mechanisms, and create national focal points and energy information networks. Now, we distinguish in Notos, a young company with the necessary qualities and management acumen to see projects through the development phases on to completion."

Preparations are currently underway for the follow-up meeting which will take place in Belgrade during the month of May. Notos and the expert group from GE will chart the course of action on the implementation of renewable energies, in South East Europe, from 2009 onwards.

Mike Andric, CEO of Green Star Alternative Energy, stated: "I believe GE values our Serbian expertise, and I look forward to furthering our discussions on the development of alternative energy in the region."

FEATURED COMPANY

BABY BEE BRIGHT CORPORATION (OTC: BBYB)

Detailed Quote: http://www.otcpicks.com/quotes/BBYB.php

Company Profile: http://www.otcpicks.com/baby-bee-bright/baby-bee-bright.htm

Baby Bee Bright Corporation manages the Baby Bee BrightTM brand. Its executive staff, composed of professionals with over 30 years of experience in engineering research and marketing, have developed an innovative prenatal communication system, servicing the rapidly expanding expectant mother/prenatal market. The company has a patented, audio directional technology for its communicator which is designed for expectant mothers to safely and efficiently transmit music and sound to their babies. It allows mothers and family to bond with their babies before birth. Lullabies and classical music provide the baby with soothing sounds before and after birth.

BBYB News:

May 11 - Baby Bee Bright Corporation is Developing Its Retail Markets

Baby Bee Bright Corporation (OTC: BBYB), developer of a unique prenatal communication system, announced today it is exploring various directions for marketing distribution of its retail products while raising capital to achieve this goal. Several retail outlets have been identified and plans are being developed for these contacts. Fred Dahlman, CEO, said, “We feel many of the retail stores that have baby departments will benefit from our products. With aggressive promotions we feel that Baby Bee Bright products not only will add to the retail outlet’s bottom line, but it will make our products more accessible to the customers. So frequently we are receiving calls from potential customers wanting to know what stores sell our products. Selling on line is a good method but now is the time to add retail outlets to our marketing plan.”

FEATURED COMPANY

THRESHER INDUSTRIES INCORPORATED (OTC: THRR)

Detailed Quote: www.otcpicks.com/quotes/THRR.php

Company Profile: http://www.otcpicks.com/thresher-industries.htm

Thresher Industries focuses on the design, engineering and manufacturing of eco-friendly precision aluminum and advanced metal matrix composites. The Company's alloys are made from 100% recycled aluminum and all metal matrix composite alloys are manufactured using clean-burning, easily reclaimable materials. The Company provides engineering, metallurgical and sales support as well as access to unique bio-degradable technologies such as its Nautilus Core system. Thresher Industries sells to the aerospace, automotive, defense and industrial markets in U.S. and Europe. The Company's 30,000 sq. foot, ISO9000-certified foundry is located in Central California in Hanford.

THRR News:

May 13 - Thresher Industries, Inc. Prepares for Rapid Revenue Growth

Thresher Industries, Inc. (OTC: THRR), a California-based manufacturer of precision aluminum and advanced metal matrix composite parts, is pleased to announce that the Company is actively pursuing numerous bids that could generate millions of dollars over the next several years. Thresher Industries, through its global sales representative Advanced Technology Sales Associates, has been negotiating with a variety of companies to provide alloy castings across several vertical markets for Thresher's high pressure casting group.

Thresher Industries has provided several quotes for manufactured automotive parts as well as research and development costs that could generate between $150,000 and $300,000 in revenues for 2009 and $500,000 to $750,000 in 2010. Once the Company begins full production to fill orders generated from these bids, revenues could increase between $3.5 million and $8.5 million in 2011 and grow to approximately $14 million in 2012. Thresher Industries also placed several bids to a lighting company to supply parts for heat sinks and other related parts that could generate additional revenues between $125,000 and $450,000 in 2009 and $450,000 to $2.4 million in 2010 for each part.

"We have submitted quotes to several companies and are actively negotiating to close them in the near future. Once closed, these new projects could bring in a significant amount of revenue for Thresher Industries over the next several years," stated Tom Flessner, CEO of Thresher Industries, Inc.

FEATURED COMPANY

MP2 TECHNOLOGIES INCORPORATED (OTC: MPTO)
"Up 27.27% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/MPTO.php

Company Profile:
http://www.otcpicks.com/mp2-technologies/mp2-technologies.htm

MP2 Technologies, Inc. serves as a holding company for technology and service related businesses that can share common management resources and access to marketing channels. New acquisitions will be announced over time as opportunities that fit the company's acquisition profile become available. Acquired companies will benefit from MP2's public company expertise, executive management, and sales and marketing contacts throughout the world. More information on the company can be found at www.mp2technologies.com.

MPTO News:

May 7 - MP2 Technologies' Subsidiary, Weatherly Aircraft, Begins First Revenue Generating Parts Order Shipments

MP2 Technologies (OTC: MPTO) (MP2) announced that its wholly owned subsidiary, Weatherly Aircraft Nevada, Inc.(Weatherly), launched its parts and services business with the shipment of its first orders for aircraft parts for the Weatherly 620B aircraft. The announcement is especially important as it represents the initiation of support for approximately 200 existing aircraft that have not been supplied with spare parts for over three years. The Company stated that the demand for parts is increasing daily as the industry becomes aware of the Company's capabilities. Weatherly anticipates that it will take several months to service its existing backlog and expects the orders to grow in the months ahead.

Richard Corline, CEO of Weatherly, stated, "We have just begun to address the incredible demand for Weatherly aircraft parts for the planes currently in operation. We expect that as the industry begins to realize that we are ready to ship parts and build the Weatherly aircraft, we will create significant demand that will accelerate our growth. Weatherly recently announced the opening of its 50,000 sq. ft. facility in Bogalusa, LA and previously stated that it would focus initially on parts and services sales while it completes assembly of its first aircraft."

Patrick Thomas, President of MP2, said, "This is an exciting week for Weatherly. Moving from a development stage company to one that is producing revenue in such a short time puts us in position to meet our revenue projections for this year. Our challenge now is to grow the Company efficiently and cost effectively as we rebuild the Weatherly brand. There are a lot of happy Weatherly aircraft owners out there today that will breathe a sigh of relief to know that the most cost effective aircraft in its class is once again being supported and built."

In a related announcement, Weatherly further stated that its first aircraft is approximately 30% complete and is expected to be delivered in the 4th quarter of this year. The Company stated that its backlog of orders for new planes will keep it at full capacity for at least the next 18 months.

ABOUT WEATHERLY AIRCRAFT NEVADA, INC.

Weatherly Aircraft Nevada, Inc. designs, manufactures and sells cost efficient, safe and reliable aerial application aircraft for agricultural, chemical and fire fighting applications. The Weatherly aircraft are based on an FAA issued "Type Certificate" for which the Company has the licensing rights. The current fleet size of Weatherly aircraft in service on a world wide basis is in excess of 200 units. The Company intends to open its new US customer support center by March, 2009 and supply spare parts and technical support to existing customers. It is anticipated that newly built aircraft will be ready for delivery to customers in December of 2009.

STOCKS TO WATCH

NEW GREEN TECHNOLOGIES INCORPORATED (OTCBB: NGRN)
"Up 271.43% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/NGRN.php

New Green Technologies, Inc. is currently focused on using its newly acquired technology to move forward in the bio-fuel and waste flow industries. With revolutionary technology, the Company can now make significant impact in the newly emerging bio-fuel and other waste industries. New Green Technologies primary technology is the Catalytic Activated Vacuum Distillation (CAVD) system which is an exclusively patented technology which allows waste products, such as DDG, carpet waste, algae, citrus waste, tobacco waste, municipal waste, and others, to be converted into a bio-fuel and gas. The Company has also acquired a plasma arc to energy technology along with a patented technology using waste water, fluid or gas flows to create electricity. NGRN's unique hydro and gas technology is being licensed to other parties for development.

NGRN News:

May 13 - New Green Technologies Announces Completion of on Site Work for Reactor Operations

New Green Technologies, Inc. (OTCBB: NGRN) announces it has completed all electrical work on site for the operation of its mobile waste to energy reactor unit in Palm Harbor, Florida. NGRN has now completed preparations for the running of several waste feedstocks. These feedstocks will be tested for viability and commercial exploration purposes. NGRN has made the appropriate applications for permitting which will allow testing of these waste feedstocks. The mobile waste reactor runs the patented CAVD system and has already been operated at other locations to run numerous waste feedstocks.

With the power setup in place, the mobile CAVD reactor will now be able to run several waste feedstocks from large resource heavy areas that are available to NGRN. NGRN will lock up large amounts of these waste feedstocks for the operation of much larger scale plants. NGRN has already gained preliminary lock up agreements of several waste feedstock sources. With the mobile facility coming on line, NGRN is able to use chemical testing of output of any waste feedstocks to prove out its' energy potential from the production of energy through electricity or through fuel processing. NGRN is working close in hand with environmental protection agencies to assure that all processed waste will be permitted or exempted for testing on an ongoing basis.

Once permitting and testing is completed, this plant will be able utilize a variety of different waste feedstocks including automobile shredder residue (ASR), carpet waste, citrus waste, tobacco waste, wood waste, agricultural wastes, and others to create oil and gas. The running of these different feedstocks will enable different measurement and planning for large scale plants to be built for the numerous feedstocks. It is anticipated that the results of running these feedstocks through will show the viability of using the CAVD system as a means of profitable waste remediation.

CONVERGE GLOBAL INCORPORATED (OTC: CVRG)
"Up 46.92% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CVRG.php

Converge Global Inc. is a junior mining company whose business strategy is to acquire existing gold mines as well as to explore new gold properties across the globe with a current focus on Northern Canada and South America.

CVRG News:

May 13 - Converge Global Inc. Completes Acquisition of Benson Lake Gold Property

Converge Global Inc. (OTC: CVRG) announced it has completed a major acquisition of the Benson Lake Gold property.

The Benson Lake Gold property is situated at Skead Township 12 miles South-East of Kirkland Lake, Ontario, Canada. The Kirkland Lake mining area remains the number one mining area in Ontario. The property consists of one hundred contiguous claim units. A seven-hole diamond drill program was completed by Ryan Lake Metals Ltd. on the Skead Township property during 1994. The highest drill hole at the site yielded high grade gold assays as high as 1.69 oz/ton/1.5 ft.

President & CEO, Bryan Gonzales, commented, “It is our belief that the Benson Lake property has significant potential, it also adds value to our growing portfolio. We were highly motivated to complete the acquisition after doing our comprehensive due diligence and reviewing prior drilling results.”

The company plans to update our loyal shareholders with additional information on the Benson Lake property in the near future.

CADDO INTERNATIONAL INCORPORATED (OTC: CADD)
"Up 117.50% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CADD.php

Caddo International, Inc. is a provider of products and services to the oil and gas industry. The Company provides and integrates products and services through exploration, development, production, operation and maintenance in the Louisiana and Texas regions. Caddo has approximately 15 employees. Formerly named Petrol Industries, the Company has successfully been in business for over 40 years. Currently the Company is focusing on providing contracting services in Caddo, Desoto, Bossier, and Claiborne Parishes, as well as certain areas in East Texas. Caddo intends to continue to expand its customer base while continuing to increase the depth and scope of the services it provides.

CADD News:

May 13 - Caddo International Releases Positive Spinoff Details for Petrolind Drilling Company and Plans to Announce Green Housing Spinoff Company

Caddo International, Inc. (OTC: CADD) announces key date in order to receive free shares in its wholly owned subsidiary, Petrolind Drilling Company, and releases positive spinoff details.

Caddo's board of directors announced today that they would extend the spinoff record date in order to benefit new and potential shareholders of Caddo International and Petrolind Drilling Company. Current shareholders as well as new shareholders that own or buy shares in CADD.PK on or before June 1, 2009 will receive free shares in Petrolind Drilling Company.

All shareholders of CADD.PK on the record date of June 1, 2009 will receive 1 share of Petrolind Drilling Company for every 20 shares they own of CADD.PK. Petrolind Drilling Company has already drilled and completed over 10 oil and gas wells, and has a commitment to drill several more over the next couple months. In addition to the spinoff, Caddo will be offering a warrant. The warrant will be for 100 shares at 50 cents.

Petrolind is a booming drilling company with a fully equipped drilling rig. Petrolind's rig can productively drill down to 3,000 ft, however the company is also looking to acquire an additional rig that can go down from 7,000 to 10,000 ft in order to rapidly expand. Even in this economy, there is still a demand for drilling rigs. Petrolind has been capitalizing on having their own rig, and has been taking advantage of that high demand. Petrolind Drilling Company is currently in talks and actively seeking other acquisitions including existing oil and gas wells. There are several opportunities that have presented themselves to be very attractive for the current market conditions and we look to take full advantage of these opportunities.

We also look to announce another exciting and positive spinoff company we have developed in the Green Housing Market. More information on this company will be announced very soon.

BEACON REDEVELOPMENT INDUSTRIAL (OTC: BCND)
"Up 100.00% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/BCND.php

Beacon Redevelopment Industrial Corporation specializes in acquiring undervalued properties that offer the potential for above average return on investment along with multiple assets and development ability at distressed prices, the properties must offer recyclable/salvageable materials, energy resources or mineral rights along with the potential for redevelopment and or desirable development potential; the company also seeks along with the above for mentioned, properties that have the possibility for governmental grants, tax rebates or deferments as part of their criteria for acquisition.

BCND News:

May 14 - Beacon Redevelopment Industrial Corporation Receives Buyout Offer

Beacon Redevelopment Industrial Corporation (OTC: BCND) announced that it has received an offer to buy out the controlling interest in the company.

The offer is subject to the buyer's terms and requirements including full review of its properties and contracts.

It is also understood that all executives will resign and be replaced with the buyer's team upon closing of the transaction. The company will continue to update its shareholders as this proposed transaction develops.

ZCOM NETWORKS INCORPORATED (OTC: ZCNW)
"Up 100.00% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/ZCNW.php

Zcom is a multi-industry company with two core businesses: Media Broadcasting/Home Shopping Division and Mineral rights/Real Estate Division. Zcom offers radio and video content delivered live and on demand over the internet. Audiences can access programs 24 hours a day, seven days a week, directly or via podcast. The company is in the process of launching a Direct Broadcast Satellite (DBS) and IP TV broadcast that will reach over 10 million households in the US, Canada and Mexico. Zcom also offers products and services through its Home Shopping Network marketed and promoted through the company's TV/IP TV broadcast resources and through its affiliate network. Existing products/services include Super Fuel and TV Box. Zcom's Mineral Rights/Real Estate Division owns a mining development, exploration and extraction company with a 160 acre gold, silver, tungsten, platinum and copper placer mining claim -- CLS #12 in Ridgecrest, California. Additionally, Zcom is a joint venture partner in the Playa Paraiso Development Project in Panama, which includes the construction and sale of 5 beachfront villas and 20 condominiums.

ZCNW News:

May 13 - Zcom Networks Executes LOI for Acquisition of Southern California Telecom Company

Zcom Networks, Inc. (OTC: ZCNW) announced that it executed a binding letter of intent regarding the acquisition of a southern California Telecom Company. The LOI was signed after recently announced negotiations last week concluded with the valuation of the successful voice and data provider, which is profitable and generated in excess of $16,000,000 in annual revenues in 2008. Management noted that the target will remain undisclosed pending the execution of definitive agreements per customary non-disclosure terms agreed on by the parties during the due diligence period of the LOI. "This is a well-established company providing high quality voice and data termination for both fixed and fixed-to-mobile services. Capitalizing on its extensive and cost-effective, proprietary TDM/IP hybrid network in conjunction with its POPs globally, it offers extensive international routes and connectivity," said Dr. Alex Parsinia, CEO of Zcom Networks, Inc. and an experienced executive of the competitive telecommunications industry. "This acquisition will be a milestone for Zcom's Media Broadcasting division with massive potential for revenues and market share growth throughout the telecom industry, as well as broad-reaching synergies across Zcom's holdings in line with our concentric acquisition model and plan for enhanced shareholder value," he concluded.

POWER MEDICAL INTERVENTIONS INCORPORATED (NASDAQ: PMII)
"Up 27.29% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/PMII.php

Power Medical Interventions®, Inc. is the world's only provider of computer-assisted, power-actuated surgical stapling products. PMI's Intelligent Surgical Instruments™ enable less invasive surgical techniques to benefit surgeons, patients, hospitals and healthcare networks. PMI manufactures durable recyclable technology to reduce medical waste and help keep the planet clean. The company was founded in 1999, and is headquartered in Langhorne, PA with additional offices in Germany, France, and Japan.

PMII News:

May 13 - Power Medical Interventions, Inc. Reports First Quarter 2009 Financial Results

Power Medical Interventions® Inc. (Nasdaq: PMII), a leader in developing and commercializing Intelligent Surgical Instruments(tm), today announced financial results for the first quarter ended March 31, 2009. The company also highlighted several corporate milestones that were achieved since the completion of the fourth quarter of 2008.

Corporate Milestones:

1) Power Medical Interventions (PMI) continued to increase sales and improve operating results in the first quarter of 2009. The company reported:

* A 16 percent increase in sales during the first quarter of 2009 as compared to fourth quarter of 2008, and a 23 percent increase in sales compared to the first quarter of 2008.

* Excluding the impact of a charge for obsolete inventory, an eight percent improvement in gross margin to 28 percent of sales in the first quarter of 2009, compared to a gross margin of 20 percent during the fourth quarter of 2008. A 29 percent improvement in gross margin to 28 percent of sales in the first quarter of 2009, compared to a gross margin of minus one percent during the same period in 2008, exclusive of charges for obsolete inventory recorded in both periods.

* A 25 percent decrease in operating expenses during the first quarter of 2009 as compared to the fourth quarter of 2008, and a 39 percent decrease in operating expenses as compared to the first quarter of 2008.

2) PMI announced that the U.S. Food and Drug Administration (FDA) cleared its 510(k) application for marketing its patented i60R Intelligent Surgical Instrument. The i60R Intelligent Surgical Instrument, the world's first reverse pivot linear cutter, is designed to improve surgical outcomes by providing surgeons with greater access to important anatomical sites that are currently difficult to reach interoperatively. The i60R will be available for applications throughout the digestive tract.

3) PMI announced the receipt of a $2.5 million milestone payment from Intuitive Surgical. In September 2008, PMI entered into a License and Development Agreement with Intuitive to jointly develop a novel surgical stapling device that will attach to Intuitive's da Vinci® Surgical System. To date, PMI has made significant progress relating to this collaboration, triggering this milestone payment.

4) PMI announced that surgeons in Japan used the company's instruments to successfully remove a gastric submucosal tumor (SMT) through a patient's vagina. This novel procedure, known as a transvaginal NOTES (Natural Orifice Translumenal Endoscopic Surgery) partial gastrectomy, was the fourth ever of its kind. Unlike traditional and laparoscopic surgeries, PMI's iNOLC (Intelligent Natural Orifice Linear Cutter) and i60XXL (Articulating Endoscopic Linear Cutter) instruments enabled these operations to be performed with only two minor abdominal incisions. As a result, all four patients had tumors successfully removed while experiencing minimal postoperative pain, requiring no medication and being able to walk the day following surgery.

5) Subsequent to the quarter end, PMI announced that it has filed a 510(k) application with the FDA requesting marketing clearance for the company's iDrive Intelligent Power Unit™ (IPU), detachable Intelligent Surgical Instruments and iConsole™ monitor. The iDrive IPU is a novel hand-held, computer-controlled power unit to which any of the company's Intelligent Surgical Instruments can be attached, offering surgeons a broad range of cutting and stapling configurations. The iConsole is a proprietary wireless device that communicates directly with the iDrive IPU during surgical procedures and provides auditory and visual feedback that allows surgeons to make real-time, critical decisions that may ultimately lead to improved patient outcomes. The company plans to launch the iDrive and iConsole products once 510(k) clearance to market is received from the FDA.

“PMI continued its track toward profitability during the first quarter of 2009. We believe that we have built an infrastructure that will support achievement of that goal. As our core competencies have matured, our quality has improved dramatically. Increasingly, surgeons and hospitals are discovering what we have previously communicated, that PMI's proprietary computer mediated Intelligent Surgical Instruments enable new procedures, facilitate ease of use in existing procedures, are cost effective, and reduce medical waste. Our technologies provide significant value to the hospital, surgeon, patient, and environment. We continue to make meaningful improvements in our operations, increase revenue, support new surgical applications with our innovative instruments and make great strides in our collaboration with Intuitive Surgical,” stated Michael Whitman, chief executive officer of Power Medical Interventions. “These achievements clearly illustrate PMI's effective execution of its business plan. In the coming months, we expect to launch our i60R cutter, iDrive Intelligent Power Unit and the iConsole monitor. We look forward to strengthening our current sales and operating trends with the commercialization of these cutting-edge products.”

Financial Results

Sales in the three months ended March 31, 2009 were $2.7 million, compared with $2.2 million during the corresponding period in 2008, an increase of 23 percent. Reload revenue, which is a key driver of the company's revenue model, was approximately $1.3 million in the first quarter of 2009, compared to $0.5 million in the first quarter of 2008.

The company's gross margin was $0.6 million, or 21 percent of sales, in the three months ended March 31, 2009, compared to a gross margin of ($0.3 million), or (15 percent) of sales, during the corresponding period in 2008. The increase in gross margin for the three months ended March 31, 2009 reflects improvements in the company's manufacturing process including the use of the Reload Automation machine implemented in the second half of 2008. During the three months ended March 31, 2009 and 2008, the company incurred inventory obsolescence charges of $179,000 and $301,000, respectively.

Total operating expenses in the three months ended March 31, 2009 decreased by 39 percent to $6.9 million from $11.4 million during the corresponding period in 2008. First quarter 2009 sales and marketing expenses decreased 49 percent to $3.5 million from $6.8 million during the first quarter of 2008. Research and development expenses for the first quarter of 2009 also decreased 49 percent to $0.8 million from $1.6 million in the corresponding 2008 period. General and administrative expenses for the first quarter of 2009 decreased 13 percent to $2.6 million from $3.0 million in the corresponding period of 2008. These reductions are largely a result of the restructuring plan the company implemented in the fourth quarter of 2008.

Net loss applicable to common shares for the three months ended March 31, 2009 was $6.9 million, or $(0.41) per basic and diluted share, compared to net loss applicable to common shares of $12.2 million, or $(0.71) per basic and diluted share, for the corresponding period in 2008.

The company's unrestricted cash and cash equivalents balance as of March 31, 2009 was approximately $4.7 million compared to $8.4 million as of December 31, 2008.

Outlook

PMI needs to raise additional capital and is actively pursuing initiatives to raise additional funds through license and development agreements with corporate partners or public and private offerings of securities, including debt or equity financings. The company expects the results of such efforts will have a material impact on financial results for 2009.

ABOUT PMI'S INTELLIGENT SURGICAL INSTRUMENTS™

PMI's Intelligent Surgical Instruments are computer-assisted, power-actuated endomechanical instruments that surgeons use for cutting, stapling and tissue manipulation in a variety of procedures in open surgery and minimally invasive surgery. The company believes that compared to conventional endomechanical devices, its Intelligent Surgical Instruments offer greater precision and consistency, superior compressive force, improved access to anatomical sites and enhanced ease of use.