American Scientific Resources (ASFX)

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ASFX Corporate Update, December 2010

The past year has proven to be an exciting time for American Scientific Resources, Inc.
(“the Company”, “ASR” or “ASFX”) (OTC: ASFX.PK). The Company has become a manufacturer and the owner of the intellectual property for two proprietary products, and their new state-of-the-art thermometer line has seen tremendous success within 2 months of launching. The Company’s mid-year 2010 update explained achievements and challenges, and at this time, ASFX would like to update its shareholders on the progress that has been made since then.

Top Milestones Include:
June – current
* Becoming a globally approved manufacturer of medical devices
* Creating new distribution channels worldwide
* Selling out of 10,000 thermometers within 2 months
* Selling 5.09 thermometers per month per point of distribution
* Increasing worldwide distribution channels
* Staff increase to respond to market demand

ASFX’s 2010 financial statements are available online at www.otcmarkets.com. Since there have been a multitude of questions surrounding the status of the Company’s S-1 filing, the Company is directing those with questions to view the most up to date information on http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001114605&owner=exclude&count=40. ASFX will not comment any further on the subject.

Thermometer Demand

The new Kidz-Med® Non-Contact and VeraTemp+™ Professional models commenced shipping to various retailers and distributors in early September.

The thermometer that the Company formerly distributed used to sell 0.15 pieces per store per month per point of distribution. The Kidz-Med Non-Contact shattered that record by selling 5.09 pieces per store per month per point of distribution. According to the latest industry research, current category leaders are selling approximately 1 to 2 pieces per store per month. Therefore, to sell 5.09 pieces per store per month upon launching is quite an accomplishment.

As a result of market demands, the Company is just completing another production run of 10,000 thermometers, soon to be shipped to the US. Shipments to retail and wholesale partners have become a daily routine.

Sell out’s occurred quickly after initial shipments were made, exceeding Company, retailer and distributor expectations. Each order placed by Amazon had been selling out in 2 days over a 2-month span. CVS.com sold out of product in a very short time frame. The companies have been re-ordering in larger quantities to try to keep up with the demand. School Health, the Company’s exclusive VeraTemp+ distributor for the school market segment, sold out of their initial order before receiving their first shipment and were recently replenished with inventory. Emergency Medical Products also placed an order for the VeraTemp+ Professional Non-Contact thermometer to target emergency medical services and institutional requirements.

Private label deals are being negotiated for a variety of customers domestically and internationally, and are expected to be fulfilled for the 2011 cough/cold season.

Furthermore, the Kidz-Med website has been re-designed in order to direct the consumer base to retail.

Worldwide Distribution Channel Expansion
Worldwide distribution agreements for the Kidz-Med® Non-Contact thermometer and VeraTemp+ Professional Non-Contact thermometer have been executed with a multitude of leading retailers and distributors.

Mass merchant and chain drug retailers include Amazon.com, Bartell Drugs, CVS.com, select CVS stores, Diapers.com, Duane Reade, Fred Meyer and Price Chopper.

Established worldwide distributors include:

Bolivia and Peru:
Laboratorios Crespal, S.A. and Overseas Trading Co.: Laboratorios Crespal, S.A., a pharmaceutical company that has been manufacturing medications for human use, has been manufacturing and marketing more than one hundred products in the Bolivian market for the last 20 years and in the Peruvian market for 10 years. They have over 3,000 clients in Bolivia and 1,500 in Peru, which, besides small private stores, include mass merchandisers, drug chains, pharmacies and supermarkets. With plans to expand their chain of distribution further, Crespal currently employs a workforce of approximately 55 sales reps in Bolivia, and 27 in Peru. Overseas Trading Co. acts for Laboratorios Crespal in the US, managing the orders placed for export products. For more information, visit their website at www.crespal.com.

Ecuador:
Grupo Fybeca: This privately held Ecuadorian company operates two drugstore chains, Fybeca and Sansana. Fybeca offers complete full service pharmacy throughout the country with 80 stores. Sansana has 260 stores targeting middle-income clients in 22 of the 24 provinces of Ecuador. Together, they maintain more than a 30% market share of all Ecuadorian pharmaceutical market. Healthcare, personal care and beauty care rank in their top ten categories of sales. Grupo Fybeca leverages extensive use of loyalty and corporate promotions to drive sales.

Chile:
Sell-Out Ltd: Sell-Out is an importer and distributor of personal, health and homecare products. They are exclusive Chilean representatives of Honeywell and Braun, makers of air purifiers and blood pressure monitors, respectively. They also represent Proctor & Gamble for their Gillette, Duracell, Braun and Oral-B brands and Seb Group for their Moulinex, Rowenta and T-Fal lines.

Panama:
Farmacias Metro: Farmacias Metro owns and operates 14 pharmacies in the city of Panama and one store in the Chitre province. Farmacias Metro uses television and print media extensively as well as radio to promote their store, services and new products.

China, Brazil, Italy, the Middle East and Southeast Asia:

Sol-Millennium Packaging Prototype

Sol-Millennium: The Sol-Millennium Group is a leading and innovative products and services company that specializes in the development, manufacturing and distribution of advanced user-friendly safety medical products.

The Company has two operating entities including Sol-Millennium Medical Products Co., LTD based in Shanghai and Zhejiang Sol-Millennium Plastic Mould Co., LTD. headquartered in Zhejiang Province, China. Since their establishment more than 20 years ago, they have dedicated themselves to provide world leading safety injection solutions.

They are the largest and most experienced syringe mould producer in China meeting over 60% of China’s syringe mould needs. Sol-Millennium is officially an approved supplier for UNICEF (United Nations Children’s Fund) and many other multinational NGO’s.

ASR’s thermometers and NGO Disintegrator unit will be shipping to this distributor in 2011. ASR has been collaborating with Sol-Millennium on developing the Disintegrator NGO version for third world and developing countries. More information can be found on their website www.sol-millennium.com.

United States:
Emergency Medical Products/School Kids Healthcare: As the Nation’s leading pre-hospital and first aid distributor of emergency medical supplies, equipment and pharmaceuticals, Emergency Medical Products, Inc. (EMP) has been servicing the emergency medical supply and equipment needs of first responders, hospitals, colleges, clinics, law enforcement, industrial safety, and pre-hospital professionals for 38 years. Thousands of EMS, fire/rescue, public safety, medical and nursing schools, dentists, campuses, schools and universities, prisons, hospitals, and emergency healthcare agencies and professionals across the country rely on EMP. School Kids Healthcare, the newest division of EMP, is a supplier of school nurse supplies, school health equipment and medical school supplies for schools/universities, clinics, daycares and businesses. Further information can be found on www.buyemp.com or www.schoolkidshealthcare.com.

McKesson: As the largest pharmaceutical distributor in North America, McKesson distributes one-third of the medicines used every day. They supply more than 40,000 U.S. retail pharmacies, hospitals and health systems. They also deliver a comprehensive offering of health care products, technology, equipment and related services to the alternate site market, including physician offices, surgery centers, long-term care facilities and home care businesses across the country. From pharmaceuticals and medical supplies to sophisticated medical hospital workflow solutions, McKesson’s offerings help customers reduce costs, streamline processes and improve patient care and medication safety. Additional information can be found on www.mckesson.com.

School Health: Founded in 1957, and still family owned and managed, School Health is the nation’s leading supplier of health supplies and equipment to schools. School Health has evolved from a specialized distributor of basic supplies to a consultative solutions provider for major health initiatives including vision and hearing screening, emergency response preparedness, infection control, and wellness plans. Not only do they supply the best of health supplies to schools (K-12), colleges and universities, early childhood, community health and professional sports teams but they also serve as ambassadors to help provide education on new products and technologies. For more information on the company, visit www.schoolhealth.com.

Additionally, the following countries and regions are currently in negotiations as potential distribution outlets for the Company’s thermometers and private label thermometers: Australia, Greece, Ireland, Kuwait, New Zealand, Singapore, Canada, Scandinavia, Turkey, UAE, United Kingdom.

Approved Manufacturer
The Company is officially an approved manufacturer of medical devices under the International Organization for Standardization (ISO), the world’s largest developer and publisher of international business standards.
http://www.americansci.com/investors/2010/11/american-scientific-resources-becomes-approved-manufacturer/

Disintegrator

Bayer Kogenate Disintegrator Prototype

Bayer Kogenate Disintegrator Prototype

Bayer continues to buy the Disintegrator for distribution to their Betaferon patients in France. Bayer has been very happy with the success of the Disintegrator and the way that their patients have embraced the technology. The Company hopes to expand the use of the Disintegrator with other Bayer Betaferon patients in different markets around the world.
Furthermore, Bayer asked ASFX to design a global solution for Kogenate, Bayer’s infusion drug treating hemophiliacs. A Disintegrator variant has been engineered, developed and presented to Bayer on Jason Roth and Marc Massoglia’s recent trip to France.
The Company continues to co-develop the NGO project with its partners in manufacturing, distribution and the NGO community.

Mebby
In October, ASFX launched the US Mebby line at the premier juvenile product industry event, ABC Kids Expo. The Company received interest and orders from several specialty baby shops, and has immediate plans for showing products to the big box baby retailers and specialty online baby retailers. Among the new products Mebby has to offer are two popular former Kuster products, the Jelly Baby and Cocoon Baby bath, which will be available again after a brief absence from the market. ASFX hopes to recapture this market and expand the line with its reach in the baby retailers.

The Mebby products are currently being sold through Amazon.com.

MEDICA
In November, the Company’s executive team headed to the world’s premier medical exhibition, MEDICA, in Düsseldorf, Germany, as a first-time exhibitor. The VeraTemp+ Professional thermometer was displayed for the first time to an audience of tens of thousands, as was the Kidz-Med thermometer and Disintegrator. All products were well received, and distribution opportunities are currently being negotiated.

Looking Forward
Dr. Christopher F. Tirotta, CEO and Chairman of ASFX, comments, “The milestones that ASFX has achieved in such a short amount of time are noteworthy. The Company has transformed itself within a year, successfully establishing significant sales channels, and continues with enormous vigor to work diligently and efficiently to create a market leading Company.”

“Thank you, our loyal shareholders, for continually standing by us on this exciting journey. Even though at times it can feel like a roller-coaster ride, please understand that as we are able to distribute updates and news, we will. ASFX is lucky to have such a dedicated group on its side,” he concludes.

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Safe Harbor
This notification may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.

Investor questions, please contact:

American Scientific Resources Investor Relations
[e-mail]
561-948-4863