American Scientific Resources Announces Novation Contract for Asthma Monitor.

NEW PALTZ, N.Y. -- Company's Cutting-Edge Asthma Monitoring Device Called Whistle Watch to have Access to 2300 Hospitals in U.S.

American Scientific Resources Inc. (Pink Sheets:ASRO) announced today Novation, the supply company of VHA Inc. and the University Health System Consortium (UHC), has initiated a supply agreement for the company's Whistle Watch product, part of the Ulster product line. It gives American Scientific through its subsidiary Ulster Scientific access to 2300 VHA and UHC hospitals or over one third of the hospitals in the U.S. It will also give American Scientific and its asthma monitoring device access to a major percentage of the nation's 17 million people with asthma as well.

"The distribution contract with Novation gives American Scientific a major academic and training launching pad to assist in building awareness of our innovative, high quality products on a national scale," said Peter Lordi, president of American Scientific Resources. "For us to generate large sales volume, educating consumers is an absolute requirement. We are very confident we will generate fairly substantial hospital orders for the company although the majority of sales clearly will occur at the retail level from physicians writing prescriptions for their patients. It should follow those physicians seeing the product used in hospitals, will send their patients to pharmacies such as CVS where the product is already on shelves. Still, sales could result in excess of 20,000 units per month at the hospitals based on the number of asthma patients treated." The product is approved for reimbursement. Also, as part of the contract, two major hospital suppliers will provide stocking and shipping capabilities for the asthma product. Lordi said, "The opportunity to work with several giants in the hospital supply and health care products industries as well as Novation will give American Scientific the ability to ramp up awareness of other pediatric and adult products at light speed."

The child's whistle marketed under the brand name "Kidz-Med" alerts a parent that their child is stable or in immediate need of medication. The device is calibrated to the child's stature, as directed by a health care worker. The child blows on the product "Whistle Watch" just as they do with other peak flow monitors. The difference is American Scientifics' device produces an audible whistle sound, thus maximizing a child's effort. Perhaps the most interesting benefit is that a parent can monitor a child's condition by telephone as well. Parents while at work, or children visiting relatives or friends as well as latch key children can be monitored as well as senior citizens who have other forms of chronic lung disease.

About Novation:

Based in Irving, Texas, Novation (www.novationco.com) was established in January 1998 through a combination of the supply programs of VHA and UHC, two national health care alliances. As the largest supply company in the health care industry, Novation managed more than $22 billion in annual purchases for VHA and UHC members in 2003.

About American Scientific Resources Inc.:

American Scientific Resources Inc. (www.AmericanSci.com), based in upstate New York, is an emerging medical products manufacturer and distributor. The company has developed a line of cutting edge, patented products that are easy to use and cost effective. Each line of products fills a current need acknowledged by clinical or medical professionals and targets a specific market; pediatrics, hospital/laboratory and home health. A number of upscale pediatric products from the Kidz-Med product line are currently available at CVS (NYSE:CVS) and Walgreen's (NYSE:WAG) nationwide.