Advanced Medical Institute Inc. Announces Audited Results for the Year Ended June 30, 2007.

SYDNEY, Australia -- Advanced Medical Institute Inc. (OTCBB:AVMD)(AMI), a leading provider of treatment for Erectile Dysfunction and Premature Ejaculation in Australia and New Zealand, has announced results for the year ended June 30, 2007. All figures are in U.S. Dollars.

For the year ended June 30, 2007, as compared to the same period in 2006:

* Total gross revenue increased 29.5% to $39,421,875 compared with gross revenue of $30,453,128 in the prior corresponding period. Revenue from its Premature Ejaculation treatment programs increased 19% and revenue from its Erectile Dysfunction treatment programs increased 37%.

* Unearned revenue increased by $1,214,236 to $5,101,288 during the twelve month period.

* Net income before tax was $(550,831) compared with net income before tax of $3,661,681 in the prior corresponding period.

* Net income after tax was $(1,320,522) compared with $2,465,194 in the prior corresponding period. The core reasons for the change from FY2006 is due to losses from the Company's operations in Japan (loss of $1,688,390), losses in the Company's operations in China (loss of $953,513) as well as non-cash patent amortization and impairment losses from the Company's worldwide patent applications ($1,343,711 before tax and $1,101,647 after tax). The Company's core Australian operations continued to perform strongly with significantly improved gross revenue and continued profitability.

As at June 30, 2007 cash and cash equivalents were $864,481 compared to $1,103,243 as at June 30, 2006.

As at October 5, 2007, the principal of the Company's secured loan had been reduced to AUD2.726 million (approximately USD2.32 million) from AUD3 million as at September 30, 2007.

"We are very pleased with the continued growth in the Company's gross revenue over the last 12 months," said Dr. Jacov Vaisman, founder, president, CEO and chairman of the board of AVMD. "We are also pleased that our Australian operations have continued to perform strongly across all market segments, that we have seen a massive increase in revenue in our New Zealand operations, with revenue for the 12 months increasing from $119,124 to $871,605 and that we have reduced the principal owing on our secured loan by AUD284,000 over the last 12 months."

"We are disappointed with the results of our initial expansion into Japan and China. As a result we have reduced the scale of our operations in Japan so that the effect of these international operations on the Company's overall performance should be reduced this current year. We have also revamped our marketing approach in China and have experienced an initial increase in customer conversion and revenue, and are hopeful that we will see an improvement in our results from our Chinese operation this year. As a result we are reasonably confident that we will see a return to profitability in the near future," continued Dr. Vaisman.

"We are also delighted that AMI Group Limited have extended their option to take a license of the use of our intellectual property in the United Kingdom and look forward to providing further updates in the next few months" concluded Dr Vaisman.

For more detailed information please see the attached table of results or refer to the Company's Annual Report on Form 10-KSB filed with the United States Securities and Exchange Commission.

About AMI

Advanced Medical Institute Inc., (AVMD.OB), headquartered in Sydney, Australia, is a leading provider of treatment programs for erectile dysfunction and premature ejaculation in Australia and New Zealand. The Company operates more than 20 facilities in Australasia, China and Japan. AVMD has more than 300 employees, including approximately 50 medical personnel and, since its inception, has provided treatment to more than 300,000 customers. Advanced Medical Institute and its predecessor companies began arranging treatment programs for Premature Ejaculation and Erectile Dysfunction patients in 1993. For more information, visit the company's website at: http://www.avmd.com.au.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; changes in consumer preferences and tastes or perceptions of health-related issues; effectiveness of advertising or market-spending programs; changes in laws and regulations; fluctuations in costs of production, foreign exchange and interest rates; and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.

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