Simulated Environment Concepts completes negotiations with Zen & O to manufacture 250 SpaCapsules

Jan 4 2010

Simulated Environment Concepts, Inc. (PINKSHEETS: SMEV), makers of the high pressurized dry water massage and relaxation station SpaCapsule, announced that it has completed negotiations with the French company Zen & O, securing a multi-million dollar deal to manufacture 250 SpaCapsules over the next four years. The deal expands the company's reach into central Europe.

"This is a significant, multimillion dollar contract for a minimum of 250 units," said Dr. Ella Frenkel, President and CEO of Simulated Environment Concepts. "It's a clear indication that the personal wellness industry continues to thrive globally even through the current recession. We began to work on the contract in May of 2009 and after mutual visits between France and the USA we signed the contract and secured a payment this December for the first order of the New Year."

Simulated Environment Concepts' international distribution agreement is with Zen & O, a French company in the forefront of fitness. With various subsidiaries and partnerships, Zen & O are involved in fitness and retail operations, providing on-the-go massage at retail locations throughout Europe.

"SpaCapsule will become a centerpiece of our 'Lady Fitness' operations," said Harve Rivoal, Lady Fitness Centers' CEO, who operates 54 centers in France, Belgium, Luxembourg, Switzerland, and Spain. "Our customers wish for a total fitness experience -- from workout to massage to cellulite treatments. We love the fact that SpaCapsule can offer an excellent range of services without adding additional personnel. Because the SpaCapsule does not require attendants, we anticipate increased revenues with reduction in payroll and associated costs."

According to the executives at Zen & O, the retail operations will use the SpaCapsule to provide massage and cellulite treatment to shoppers in malls. Stephane Tournier, a manager at Aquadetente, the mall operations arm of Zen & O, stated, "The uniqueness of SpaCapsule is that an individual can have a dry aqua massage without undressing or getting wet. While in the SpaCapsule the customer is watching video, listening to music, and inhaling scented oxygen. If the customer wants, he or she can even use their own iPod. We are gearing to open many more locations throughout France and Spain. For the past four years we used a competing technology made by AquaMassage to test out and prove the concept. However, now we will use SpaCapsule exclusively because of its technological and aesthetic superiority. This is indeed a beautiful machine that utilizes the latest computer technology for accounting and usage tracking."

"This contract is a significant milestone for us," said Dr. Spivak, Managing Partner at Simulated Environment Concepts who was intimately involved in the negotiation and execution of the agreement. "This commitment will provide revenue stability for many years to come. In addition, the European retail locations will serve as mini 'showrooms' for any new customers throughout Europe and undoubtedly generate more sales. We are very excited."

Dr. Spivak concluded, "This is an exciting finale to 2009. We are currently assembling the first order of the New Year and anticipate on-time delivery. We're also planning strategy to support and increase our new affiliate's sales with new marketing initiatives and incentives."