Advanced Medical Institute Inc. Announces Results For Quarter and Half-Year Ended December 31, 2006.

SYDNEY, Australia -- Advanced Medical Institute Inc. (AVMD.PK or AMI), a leading provider of treatment for Erectile Dysfunction and Premature Ejaculation in Australia and New Zealand, has announced results for the fiscal quarter and half year ended December 31, 2006. All figures are in U.S. Dollars.

For the six months ended December 31, 2006, as compared to the same period in 2005:

* Total gross revenue increased 61.2% to $20,322,223 compared with gross revenue of $12,605,708 in the prior corresponding period. Revenue from its Premature Ejaculation treatment programs increased 70% and revenue from its Erectile Dysfunction treatment programs increased 46%.

* Unearned revenue increased by $1,012,922 to $4,899,974 during the six month period compared with an increase of $1,552,926 to $3,355,970 for the same period a year ago.

* Net income before tax increased 51.3% to $1,467,426 compared with net income before tax of $969,808 in the prior corresponding period.

* Net income after tax was $637,711 which is a decrease of $20,000 from the result in the prior corresponding period.

For the three months ended December 31, 2006, as compared to the same period in 2005:

* Total gross revenue increased 32.1% to $9,918,553 compared with gross revenue of $7,511,008 in the prior corresponding period. Revenue from its Premature Ejaculation treatment programs increased 33% and revenue from its Erectile Dysfunction treatment programs increased 24%. The quarter revenue in the first quarter was $10,403,670. The reason for the slight drop in revenue to this quarter is that the second quarter contains more public holidays than the first quarter with the business being closed for a week over Christmas.

* Unearned revenue increased by $472,944 to $4,899,974 during the three month period compared with an increase of $398,059 to $3,355,970 during the same period a year ago.

* Net income before tax was $485,132 with net income after tax of $96,020. These results were significantly lower than the corresponding results in the same period a year ago. The principal reason for these decreases was the impact on income as a result of the initial investments in the Company's new operations in China and Japan during the three month period. Underlying profitability in the Company's core operations in Australia continued to increase with net income after tax of $1,124,244 compared to $847,676 in the prior corresponding period.

"We are very pleased with the results for the second quarter and first half year of fiscal 2007 as the Company has now reported profit in each of the last five fiscal quarters," said Dr. Jacov Vaisman, founder, president, CEO and chairman of the board of AVMD. "We are particularly pleased with the ongoing expansion and significant profitability of our core Australian operations."

"As previously announced, we have commenced operations in China and Japan and we are continuing to make significant investments in each country in order to expand our business" continued Dr. Vaisman. "As expected, we have incurred some start up costs in both countries and we anticipate needing to make further expenditures to establish those businesses over the next 6 to 12 months. In the longer term, we believe that the Company will receive a positive return on our offshore investments in China and Japan and we look forward to continuing to report on our progress in the coming months," Dr. Vaisman concluded.

For more detailed information please see the attached table of results or refer to the Company's Quarterly Report on Form 10-QSB filed with the United States Securities and Exchange Commission on February 14, 2007.

About AMI

Advanced Medical Institute Inc., (AVMD.PK), 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 30 facilities in Australasia. AVMD has more than 350 employees, including 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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