American Scientific Resources Announces Record Sales.

NEW PALTZ, N.Y. -- American Scientific Resources, Inc. (other OTC:ASRO.PK)

ASR's asthma monitoring device exceeded forecasts and drove ASR to a record quarter. "The product is selling off the pharmacy's shelves just as we are we in the infancy of executing our distribution and marketing model." "This seems to be a repeat of our past history according to Peter F. Lordi president of ASR." As a rule sales of home health care products are first directed to doctors and hospitals who in turn educate the patient. As with our Autolet, the first spring loaded mechanical capillary blood sampling device, the patients became aware of the product and educated the health care community as to how they believed it would assist them in maintaining normal blood sugar levels and better health. Twenty years after the introduction of the Autolet and associated monitoring equipment on NBC's Today Show, the National Institute for Health completed its study suggesting stabilized blood glucose levels would minimize diabetic complications.

The amount of information available to patients is now far greater now than ever. It is a significant factor whether by radio, newspapers, TV and the Internet. In addition, over the counter providers of medical products are being more pro-active in their selection of new technologies. Patients seeing medical devices on the pharmacy shelves are making decisions for themselves and in turn are educating health care workers. "The public is turning out once again to be our best sales force."

Nevertheless, the company has just executed a major contract with one of the leading hospital purchasing groups. ASR will adhere to the standard marketing model and assume only a small percentage of customers have the confidence to make home health care purchasing decisions.

Our asthma product 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 our device produces an audible whistle sound, thus maximizing a child's effort. Perhaps the most interesting benefit is 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.

There are over 17,000,000 asthmatics in the United States. The result of which is over a half a million overnight hospitals stays a year. Over 5,000,000 children are diagnosed with asthma which can be a life threatening disorder. The whistle is replaced every six months reflecting the child's growth rate. The highly technical patented device is exclusively available through American Scientific and its distribution network. Sales are expected to exceed $30,000,000 annually. Whistle Watch is the first of a series of soon to be available asthma products.

Whistle Watch is also only one of our nationally available products being distributed under the brand name Kidz-Med. We are expanding heavily into the pediatric care area and with a history of selling surgical supplies we plan on providing state of the art medical equipment to hospitals, clinics and doctor's offices as well as home health care patient friendly products.

Our Kidz-Med group is focusing on the health and well being of 4,000,000 new births as well as another 11,000,000 adolescent children. Kidz Med products are available through major pharmaceutical retailers as well as surgical supply houses.

This press release contains statements, which may constitute "forward looking statements" within the meaning of 1933 and Securities Exchange of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those include statements regarding the intent, belief or current expectations of the management of American Scientific Resources Inc. as well as assumptions on which such statements are based. Prospective investors are cautioned forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results to differ materially from those in forward-statements include fluctuation of operating results to compete successfully and the ability to compete before -mentioned transactions. The company undertakes no obligation to revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events to future operating results.