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Child Health and Safety Product Distribution Channel Changes

WESTON, Fla., Aug. 14 /PRNewswire/ -- Kidz-Med, Inc. (the Company), a subsidiary of American Scientific Resources, Inc. (Pink Sheets: ASFX), is announcing a change in the distribution channels of its flagship product, the Kidz-Med Thermofocus.

Recently, the Company has learned of Walgreens' intent to cut many SKUs out of their planograms going in to the 2009/2010 year, including the Kidz-Med Thermofocus. To the Company's knowledge, this decision is solely the retailer's and is based upon economics. The retailer continues to maintain interest in its relationship with American Scientific Resources, Inc., the infrared thermometer and in other ASR products.

Fortunately, management has made numerous contingency plans. Around the same time, the Company received reliable information that another distinguished baby specialty retailer has placed an initial order of the product. Meanwhile, renewal orders from Walgreens are expected to fall off as early as the end of August. No word has been given as to when reorders might resume.

Dr. Christopher Tirotta, CEO of American Scientific stated, "We continue to have a strong working relationship with Walgreens, and they have indicated interest in future products that Kidz-Med would like to bring to market. We look forward to the day when the Kidz-Med brand can once again be displayed in their stores nationwide."

The economical environment has forced most every industry to revise short-term strategies and future plans; the retail industry has faced unique market conditions over the past recent quarters.

As Myron E. Ullman, III, and, Robert A. Niblock (Chairman of the National Retail Federation and the Retail Industry Leaders Association, respectively) said in a joint statement last spring, "This is a historic time for our industry. The challenges and opportunities before our members are unprecedented."

ASR has made contingency planning a priority since last year's shareholder meeting.

About Kidz-Med, Inc.

A division of American Scientific Resources, Inc., Kidz-Med, Inc. was founded in 1993 by Dr. Christopher F. Tirotta to create children's pre-operative educational videos "A Hospital Trip With Dr. Bip" and "Dr. Bip's New Baby Tips." Today, Kidz-Med, Inc. is leading the pediatric and children's health and safety products industry in innovation by providing the most revolutionary patented family-friendly products sourced from around the globe to help keep children safe and parents reassured. For additional information, visit or the corporate web site,

Safe Harbor

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.

    Ronald Garner

SOURCE Kidz-Med, Inc.
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