Advanced Medical Institute Inc. Announces Results for Quarter Ended September 30, 2006.

SYDNEY, Australia -- Advanced Medical Institute Inc. (Pink Sheets:AVMD), a leading provider of treatment for erectile dysfunction (ED) and premature ejaculation (PE) treatment in Australia and New Zealand, has announced results for the fiscal quarter ended September 30, 2006. All figures are in U.S. dollars.

Results for the quarter showed growth in revenue, income and profitability. For the three months ended September 30, 2006, as compared to the same period in 2005:

* Total gross revenue increased 104% to $10,403,670 compared with gross revenue of $5,094,700 in the prior corresponding period. Revenue from its premature ejaculation treatment programs increasing 128% and revenue from its erectile dysfunction treatment programs increasing 68%.

* Unearned revenue increased by $539,978 to $4,427,030 during the quarter compared with an increase of $1,284,428 to $3,087,472 during the same period a year ago.

* Net income after tax was $541,691 or $.01 cents per share of common stock compared with a net loss of $227,059 or $(.01) for the three months ended September 30, 2005.

* Gross profit was $8,038,088 for the three months ended September 30, 2006 compared with gross profit of $3,184,186 in the same period in 2005. As a percentage of revenue, gross profit increased to 77.3% as compared with 62.5% a year ago primarily as a result of growth in AVMD's revenue and continued attention to cost reductions and controls.

* Cost of revenue increased to $2,365,582 in the three months ended September 30, 2006 compared with $1,910,514 in the three months ended September 30, 2005. As a percentage of revenue, cost of revenue dropped to 22.7% compared with cost of revenue of 37.5% in the prior year period.

"We are very pleased with the results for the first quarter of fiscal 2007 as it continues our year long period of record growth and profitability," said Dr. Jacov Vaisman, founder, president, CEO and chairman of the board of AVMD. "For the twelve month period from October 1, 2005 to September 30, 2006 our unaudited gross revenues were $35,762,098."

"We are also pleased to advise that for the twelve month period from October 1, 2005 to September 30, 2006 our unaudited net income after tax on a US GAAP basis was $3,233,944 and on a non-US GAAP basis (which is calculated by adding after tax unearned revenue for the period to US GAAP after tax income for the period) was $4,637,524." He added, "Based on a current share price of approximately $0.60 per share, the Company is trading at 9.93 times annual US GAAP net income after tax and 6.92 times annual non-US GAAP net income after tax. Both of our major product segments, treatments for premature ejaculation and erectile dysfunction, continue to show sales growth. We have just launched the business into China and Japan and our R & D efforts are continuing and we are hopeful that we will start to show some positive growth from our international expansion in the near future. We look forward to continuing to report on our progress and growth in the coming months," Dr. Vaisman concluded.

About the Company

Advanced Medical Institute Inc., (Pink Sheets:AVMD), headquartered in Sydney Australia, is a leading provider of treatment programs for erectile dysfunction and premature ejaculation in Australasia. The Company operates 22 treatment clinics in Australia and New Zealand as well as a clinic in Beijing, China and a clinic in Tokyo, Japan. AVMD has more than 330 employees, including 50 medical personnel and, since its inception, has provided treatment or counseling to more than 300,000 patients. Advanced Medical Institute and its predecessor companies began treating PE and ED 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.

To supplement our consolidated financial statements presented in accordance with GAAP, we discuss our results in terms of financial measures that may be deemed to be "non-GAAP financial measures" under the rules and regulations of the Securities and Exchange Commission. Our management believes that these measures provide meaningful information regarding the company's performance and liquidity by excluding certain expenses that may not be indicative of its core operating results and facilitate comparisons to its historical operations and competitors' operating results. To the extent such measures are not readily reconcilable to the comparable GAAP financial measures contained in its consolidated financial statements, we provide detailed reconciliations that permit investors to determine how such non-GAAP financial measures have been derived.

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