Advanced Medical Institute Inc. Announces Results For Quarter and Nine Months Ended...

Advanced Medical Institute Inc. Announces Results For Quarter and Nine Months Ended March 31, 2008

SYDNEY, Australia--(Business Wire)--
Advanced Medical Institute Inc. (OTCBB:AVMD) (AMI), a leading
provider of treatment for Erectile Dysfunction and Premature
Ejaculation in Australia and New Zealand, has announced results for
the fiscal quarter and nine months ended March 31, 2008. All figures
are in U.S. Dollars.

For the nine months ended March 31, 2008, as compared to the same
period in 2007:

-- Total gross revenue increased 28.3% to $36,948,958 compared
with gross revenue of $28,809,524 in the prior corresponding
period. Revenue from its Erectile Dysfunction treatments
increased 50% to $17,503,930, revenue from its Premature
Ejaculation treatments increased 9.6% to $17,795,923 and
revenue from its Prostate treatments increased 64.9% to
$1,719,903.

-- Unearned revenue increased by $930,494 to $6,031,782 during
the nine month period.

-- Income before tax was $2,491,176 compared with $750,612 in the
prior corresponding period, an increase of 231.9%.

-- Net income after tax was $1,239,372 compared with $(84,490) in
the prior corresponding period.

For the three months ended March 31, 2008, as compared to the same
period in 2007:

-- Total gross revenue increased 47.2% to $13,408,468 compared
with gross revenue of $9,002,590 in the prior corresponding
period. Revenue from its Premature Ejaculation treatment
programs increased 17.6% to $6,044,467, revenue from its
Erectile Dysfunction treatment programs increased 88.2% to
$6,851,362 and revenue from its Prostate treatments increased
54.8% to $526,187. Quarterly revenue in the current period
increased 1.83% compared with gross revenue of $13,167,619 in
the first quarter.

-- Unearned revenue increased by $690,926 to $6,031,782 during
the three month period compared with a decrease of $(36,622)
to $4,863,352 during the same period a year ago.

-- Net income before tax increased to $1,050,728 compared to
$(716,813) in the prior corresponding period.

-- Net income after tax was $554,177 compared with $(722,651) in
the prior corresponding period and compared with net income
after tax of $746,731 in the second quarter.

As at March 31, 2008, as compared to June 30, 2007:

-- Cash and cash equivalents increased to $2,761,663 from
$737,383.

-- Total assets increased to $50,750,297 from $43,661,956.

-- Total Stockholders Equity increased to $32,273,303 from
$28,675,135.

"We are delighted with the results for the third quarter and first
nine months of fiscal 2008, with the Company experiencing both
significant top line revenue growth and significant profitability,"
said Dr. Jacov Vaisman, founder, president, CEO and chairman of the
board of AVMD. "In addition, our cash position and balance sheet have
been improved both as a result of ongoing operational profitability
and as a result of voluntary prepayments of the secured loan made to
the Company from ANZ Nominees, the balance of which has been reduced
to AUD2.098 million as at May 7, 2008 from AUD3 million initially in
September 2006."

"As previously announced, we have also disposed of our
non-strategic investment in Whygo Videoconferencing Pty Limited at a
premium to book value and used the proceeds to pay down our secured
debt, the benefits of which are anticipated to be reflected in our
financial results for the final quarter of this fiscal year,"
continued Dr. Vaisman.

"Our core Australian operations continue to experience significant
revenue growth with modest growth in our PE treatments and what
management views as continued substantial growth in both our ED and
prostate treatments," Dr Vaisman concluded.

For more detailed information please see the attached table of
results or refer to the Company's Quarterly Report on Form 10-Q filed
with the United States Securities and Exchange Commission on May 15,
2008.

About AMI

Advanced Medical Institute Inc., (OTCBB:AVMD), headquartered in
Sydney, Australia, is a leading provider of treatment programs for
erectile dysfunction and premature ejaculation in Australia and New
Zealand. The Company operates more than 20 facilities in Australasia,
China and Japan. AVMD has more than 280 employees, including 57
medical personnel and, since its inception, has provided treatment to
more than 350,000 customers. Advanced Medical Institute and its
predecessor companies began arranging treatment programs for Premature
Ejaculation and Erectile Dysfunction patients in 1993. For more
information, visit the company's website 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.

-0-
*T
ADVANCED MEDICAL INSTITUTE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

Three Month Periods Ended Nine Month Periods Ended
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------ ------------ ------------- -------------

NET REVENUE $13,408,468 $ 9,002,590 $ 36,948,958 $ 28,809,524

COST OF REVENUE (2,786,301) (2,297,734) (8,204,757) (6,930,952)
------------ ------------ ------------- -------------

GROSS PROFIT 10,622,167 6,704,856 28,744,201 21,878,572

SELLING, GENERAL
AND
ADMINISTRATIVE
EXPENSES (9,483,354) (6,446,260) (25,735,251) (19,354,923)
------------ ------------ ------------- -------------

OPERATING INCOME 1,138,813 258,596 3,008,950 2,523,649
------------ ------------ ------------- -------------

OTHER INCOME AND
(EXPENSE)
Rental income - 4,735 - 14,443
Bank interest 26,052 9,028 52,267 37,440
License fee
income - 19,275 - 19,275
Management fee
income 5,763 44,549 27,480 90,838
Other income 408 1,912 7,689 50,418
Interest expense (66,872) (67,867) (198,926) (132,139)
------------ ------------ ------------- -------------

TOTAL OTHER
INCOME
(EXPENSE) (34,649) 11,632 (111,490) 80,275
------------ ------------ ------------- -------------

INCOME FROM
CONTINUED
OPERATIONS 1,104,164 270,228 2,897,460 2,603,924

DISCONTINUED
OPERATIONS
Loss from
discontinued
operations (53,436) (987,041) (406,284) (1,853,312)
------------ ------------ ------------- -------------

INCOME (LOSS)
BEFORE INCOME
TAXES 1,050,728 (716,813) 2,491,176 750,612

INCOME TAX
EXPENSE (496,551) (5,838) (1,251,804) (835,552)
------------ ------------ ------------- -------------

NET INCOME
(LOSS) 554,177 (722,651) 1,239,372 (84,940)

Other
Comprehensive
item - Foreign
currency
translation
income 1,357,078 840,152 2,358,796 2,450,277
------------ ------------ ------------- -------------

Net
Comprehensive
Income $ 1,911,255 $ 117,501 $ 3,598,168 $ 2,365,337
============ ============ ============= =============

Earnings (Loss)
per common
share, basic $ 0.01 ($0.01) $ 0.02 ($0.00)
============ ============ ============= =============

Weighted average
number of
shares, basic 53,507,450 53,507,450 53,507,450 47,186,478
============ ============ ============= =============

The accompanying notes are an integral part of these unaudited
financial statements.

*T

Doyle Corporate Pty Limited
Richard Doyle, +61 2 8198 9204
rdoyle@staywellgroup.com

Copyright Business Wire 2008