Advanced Medical Institute Inc. Expands New Zealand Operations, Forms New Subsidiary, Opens First NZ Clinic, Arranges Contract with Spectrum Pharmaceuticals (NZ) Limited.

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, has expanded its New Zealand operations, it was announced today by Dr. Jack Vaisman, chairman, chief executive officer and president of AVMD and its chief operating subsidiary, AMI Australia.

AVMD, through AMI Australia, began providing treatment programs in the New Zealand market on July 15, 2005. The company has now formed a separate wholly owned subsidiary, Advanced Medical Institute (NZ) Limited (AMI NZ), for the purpose of carrying on business in New Zealand. It has also opened its first New Zealand clinic in Auckland, New Zealand's largest city, and has arranged for two of AVMD's fully New Zealand licensed doctors to relocate to Auckland.

AMI NZ, has also entered into a contracting arrangement with Spectrum Pharmaceuticals (NZ) Limited, a fully licensed in New Zealand compounding pharmacy, to fill scripts (prescriptions) for AMI NZ's customers.

"We have been very pleased with the initial results of our operations in New Zealand," said Dr. Vaisman. "Our activities, which have been supported by a wide-ranging advertising campaign to introduce our treatment programs in New Zealand, have garnered widespread interest and demand. To meet this demand, we have opened our first clinic in Auckland and have staffed it with two full-time doctors and four additional personnel," he continued.

"We have also made arrangements with Spectrum Pharmaceuticals to act as our on-site compounding pharmacy. Spectrum Pharmaceuticals has the expertise and capabilities to fill all expected scripts provided by AMI NZ's customers and to produce all pharmaceuticals to a GMP certified standard in accordance with New Zealand regulatory requirements. Spectrum Pharmaceuticals will also be able to assist AMI NZ in the areas of medication formulation, development and medicines delivery, stability testing, clinical trials regulatory affairs and marketing advice as and when required, which will be of invaluable assistance in expanding AMI NZ's treatment programs in the New Zealand market," he added.

Spectrum Pharmaceuticals operates an existing licensed compounding pharmacy in the Fiordland area of New Zealand (near Queenstown) and has access to a large licensed compounding pharmacy in Auckland.

Spectrum Pharmaceuticals is owned and operated by Mr. Julian Price. He holds a biochemistry/pharmacy double degree from the Otago University, Dunedin Medical school and has more than 18 years pharmaceutical experience and expertise. He also owns and operates a large retail pharmacy near the Milford Sound Track in Fiordland, and his preventative medicines have been used by the NZ public for many years.

About the Company

Advanced Medical Institute Inc. (Pink Sheets:AVMD), with headquarters in Sydney, is a leading provider of treatment programs for erectile dysfunction and premature ejaculation in Australia. The company operates 17 treatment clinics in Australia, has more than 185 employees, including 33 medical personnel and, since its inception, has provided treatment to more than 250,000 patients. Advanced Medical Institute and its predecessor companies began treating PE and ED patients successfully in 1993, six years prior to the Australian launch of Viagra in 1999. For more information, visit the company's Web site 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.