WellQuest Announces Record Revenues in Second Quarter of 2009

* Reuters is not responsible for the content in this press release.

Mon Aug 17, 2009 8:00am EDT

* Revenue Growth Driven by Record Number of Client Visits to Medical Clinic
* Second Consecutive Quarter of Record Revenues

BENTONVILLE, Ark.--(Business Wire)--
WellQuest Medical & Wellness Corporation (the "Company" or "WellQuest")
(OTCBB:WEQL), announced revenues of $940,121 in the three months ended June 30,
2009, a new record for the Company, exceeding Q1 2009`s record of $930,336.
Revenues in the second quarter of 2009 increased $160,461, or 21% over 2008
first quarter revenues of $779,660. 

"Our financial results, specifically record revenues and operating income, are
evidence that our business model continues to gain traction with our target
market. We look forward to replicating the success of our Bentonville flagship
location at future sites," stated WellQuest CEO Steve Swift. 

Revenue growth was driven by increased demand for medical clinic services as
evidenced in a 30% rise in medical clinic visits from 6,435 visits in the second
quarter of 2008 to 8,384 visits in the second quarter of 2009. 

The Company reported operating income of $14,085 in the second quarter of 2009
compared to an operating loss of $(447,315) in the second quarter of the prior
year. Results were driven by increased revenues and lower operating expenses in
the second quarter of the current fiscal year as compared to Q2 of fiscal 2008.
Operating expenses were lower in Q2 of 2009 as compared to the prior year`s
second quarter due to legal and corporate expenses associated with WellQuest
becoming public. 

Net loss for the second quarter of 2009 was $(49,848) or $(0.002) per share,
compared to a net loss of $(513,959) or $(0.022) per share in the second quarter
of 2008. Net income results were driven by a combination of increased revenues
and lower corporate and legal expenses in the second quarter of the current
fiscal year. 

For the six month period ended June 30, 2009, revenues grew 15% to $1,870,457 as
compared to $1,631,206 in the six months ended June 30, 2008. Revenue growth is
attributed to increased demand for medical clinic services which grew by 19%
from 13,876 client visits in the six months ended June 30, 2008 as compared to
16,550 visits in the six months ended June 30, 2009. 

Operating loss was $(32,495) in the six months ended June 30, 2009 compared to
an operating loss of $(342,238) in the prior year`s period. Net loss decreased
in the six months of fiscal 2009 by $328,107 or 69% to $(150,352) from
$(478,459) in the six months ended June 30, 2008. Operating and net income
results were driven by increased revenues and decreased operating expenses in
the 2009 period as compared to 2008. 

About WellQuest Medical & Wellness Corporation

WellQuest offers its innovative concept in healthcare delivery by integrating
conventional and complementary physician medicine with wellness, and aesthetic
services in one center, creating an effective environment for the pursuit and
maintenance of a healthy life. WellQuest`s unique model for healthcare helps
customers get well, stay well, and look well. Currently operating in
Bentonville, Arkansas, WellQuest seeks to open locations across the U.S. 

In addition to historical information, this press release may contain statements
that constitute forward-looking statements within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements contained
in this press release include the intent, belief or expectations of the Company
and members of its management team with respect to the Company's future business
operations and the assumptions upon which such statements are based. Prospective
investors are cautioned that any such forward-looking statements are not
guarantees of future performance, and involve risks and uncertainties, and that
actual results may differ materially from those contemplated by such
forward-looking statements.

 WELLQUEST MEDICAL & WELLNESS CORPORATION                                                                                                                                                                                                                   
 
(formerly HQHealthQuest Medical & Wellness Centers, Ltd.)                                                                                                                                                                                                 
                                                                                                                                                                                                                                                  
 Consolidated Balance Sheets                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                  
                                                                                                                                                                                      June 30                           December 31               
                                                                                                                                                                                            2009                            2008              
                                                                                                                                                                                      (Unaudited)                                                 
 Assets                                                                                                                                                                                                                                           
 Current assets:                                                                                                                                                                                                                                  
 Cash                                                                                                                                                                                 $     59,801                    $     103,265           
 Accounts receivable, less allowance of $189,190 and $235,348 at June 30, 2009 and December 31, 2008, respectively                                                                          235,342                         293,363           
 Other current assets                                                                                                                                                                       57,837                          50,737            
                                                                                                                                                                                                                                                  
 Total current assets                                                                                                                                                                       352,980                         447,365           
                                                                                                                                                                                                                                                  
 Property and equipment, net                                                                                                                                                                334,681                         387,125           
                                                                                                                                                                                                                                                  
 Deferred financing costs, net of accumulated amortization of $9,258 and $0 at June 30, 2009 and December 31, 2008, respectively                                                            101,842                         -                 
                                                                                                                                                                                                                                                  
 Total assets                                                                                                                                                                         $     789,503                   $     834,490           
                                                                                                                                                                                                                                                  
 Liabilities and Stockholders' Deficit                                                                                                                                                                                                            
 Current liabilities:                                                                                                                                                                                                                             
 Line of credit                                                                                                                                                                       $     185,000                   $     202,494           
 Accounts payable                                                                                                                                                                           209,859                         293,312           
 Accrued liabilities                                                                                                                                                                        219,590                         207,329           
 Due to physicians and related parties                                                                                                                                                      526,816                         545,823           
 Note payable to related party                                                                                                                                                              -                               349,608           
 Current maturities of long-term debt                                                                                                                                                       462,276                         517,324           
 Current obligations under capital leases                                                                                                                                                   25,942                          23,902            
 Current maturities of subordinated debentures payable to stockholders, net of unamortized discount of $0 and $17,093 at June 30, 2009 and December 31, 2008, respectively                  490,497                         523,409           
                                                                                                                                                                                                                                                  
 Total current liabilities                                                                                                                                                                  2,119,980                       2,663,201         
                                                                                                                                                                                                                                                  
 Long-term subordinated convertible debenture to a stockholder, less current maturities                                                                                                     443,123                         -                 
                                                                                                                                                                                                                                                  
 Long-term obligations under capital leases, less current portion                                                                                                                           105,144                         118,646           
                                                                                                                                                                                                                                                  
 Total liabilities                                                                                                                                                                          2,668,247                       2,781,847         
                                                                                                                                                                                                                                                  
 Stockholders' deficit:                                                                                                                                                                                                                           
 Preferred stock - $.01 par value; authorized 2,500,000 shares                                                                                                                              255                             374               
 
75,000 designated as Series A convertible preferred stock; 25,515 and 37,440 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively                                                                             
 Common stock - $.001 par value; authorized 150,000,000 shares; 29,010,167 and 23,716,361 shares issued and outstanding at June 30, 2009 and December 31, 2008, respectively                29,010                          23,716            
 Additional paid-in capital                                                                                                                                                                 1,476,820                       1,263,030         
 Warrants outstanding                                                                                                                                                                       177,000                         177,000           
 Accumulated deficit                                                                                                                                                                        (3,561,829  )                   (3,411,477  )     
                                                                                                                                                                                            (1,878,744  )                   (1,947,357  )     
                                                                                                                                                                                                                                                  
 Total liabilities and stockholders' deficit                                                                                                                                          $     789,503                   $     834,490           


 WELLQUEST MEDICAL & WELLNESS CORPORATION                                                                                                                                                                
 
(formerly HQHealthQuest Medical & Wellness Centers, Ltd.)                                                                                                                                              
                                                                                                                                                                                                   
 Consolidated Statements of Operations                                                                                                                                                                   
 
For the three and six months ended June 30, 2009 and 2008                                                                                                                                              
 
(Unaudited)                                                                                                                                                                                            
                                                                                                                                                                                                   
                                                                     Three Months Ended                                               Six Months Ended                                             
                                                                     June 30,                                                         June 30,                                                     
                                                                          2009                            2008                      2009                            2008             
                                                                                                                                                                                             
 Net revenue                                                         $    940,121                    $    779,660              $    1,870,457                  $    1,631,206        
                                                                                                                                                                                             
 Operating expenses:                                                                                                                                                                         
 Salaries, wages and benefits                                             310,449                         358,100                   615,809                         653,044          
 Rents and facility expenses                                              71,142                          79,334                    143,723                         154,186          
 Clinic direct expenses, excluding salaries, wages and benefits           366,766                         301,185                   717,833                         540,325          
 Spa direct expenses, excluding salaries, wages and benefits              78,916                          77,615                    156,353                         135,465          
 General corporate expenses                                               69,620                          383,499                   211,496                         436,127          
 Depreciation and amortization                                            29,143                          27,242                    57,738                          54,297           
                                                                                                                                                                                             
 Total operating expenses                                                 926,036                         1,226,975                 1,902,952                       1,973,444        
                                                                                                                                                                                             
 Operating income (loss)                                                  14,085                          (447,315    )             (32,495     )                   (342,238    )    
                                                                                                                                                                                             
 Interest income (expense):                                                                                                                                                                  
 Interest income                                                          -                               530                       -                               3,232            
 Interest expense                                                         (63,933     )                   (67,174     )             (117,857    )                   (139,453    )    
                                                                                                                                                                                             
 Net interest expense                                                     (63,933     )                   (66,644     )             (117,857    )                   (136,221    )    
                                                                                                                                                                                             
 Net loss applicable to common stock                                 $    (49,848     )              $    (513,959    )        $    (150,352    )              $    (478,459    )    
                                                                                                                                                                                             
 Loss per common share:                                                                                                                                                                      
 Basic and diluted                                                   $    (0.002      )              $    (0.022      )        $    (0.006      )              $    (0.021      )    
                                                                                                                                                                                             
 Weighted average number of common shares outstanding:                                                                                                                                       
 Basic and diluted                                                        25,177,933                      23,239,394                24,451,185                      23,239,394       


For WellQuest Medical & Wellness Corporation
Investor and Media Contact:
Dilek Mir, 310-591-5619
dmir@corporateprofile.com

Copyright Business Wire 2009

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