Medical Services Involved in Dispute With US Based Investment Company

EDMONTON, Alberta, Aug. 7  /PRNewswire-FirstCall/ -- Medical Services International Inc. (OTC:MSITF) has become involved in a dispute with a US based Investment Company. As a result of the dispute Medical Services will be claiming damages of 75 million dollars against the investment company. In the dispute, Medical Services is alleging conspiracy, fraud, material misrepresentation, scheme to manipulate stock and interference with economic advantage by deliberately with malice of forethought forcing the value of the MSI stock downward without regard to the damage to the Company and its shareholders. This lawsuit was filed in Chicago under Case #06L001178.

In June 2005, MSI entered into an agreement with Financial Alchemy LLC and Randall Goulding to fund $450,000 US. As collateral, Medical Services put up shares in the Company. Financial Alchemy was to fund $450,000 US at closing. They were only able to fund $250,000 at closing even though Medical Services delivered all of the collateral shares for the entire amount. Medical Services put pressure on Financial Alchemy and Randall Goulding to fund the remaining $200,000 US. Almost immediately there was significant downward pressure on the price of Medical Services stock. Medical Services contacted Financial Alchemy and Goulding and confronted them with the allegation that they were selling the collateral stock before the funding was complete. It is the allegation of Medical Services that in order to fund the remaining $200,000 of the financing that Financial Alchemy on the instructions of Randall Goulding deliberately with malice of forethought began forcing the price of the MSI shares down through the sale of collateral shares that had not yet been funded. By forcing the price of the MSI shares down they were able to demand additional shares at significantly lower pricing.

Medical Services refused to give Financial Alchemy LLC and Randall Goulding additional shares and attempted to redeem its stock from Financial Alchemy. Financial Alchemy refused to let Medical Services redeem its stock or to tell MSI how much of the collateral stock that they had left. They refused to give Medical Services an accounting related to the stock. Medical Services was subsequently able to find out that Financial Alchemy had sold all of the collateral stock. It is the allegation of MSI that Financial Alchemy did not have the funds to complete the funding and needed Medical Services shares to sell in order to complete the funding. It is further alleged that Goulding instructed Alchemy to sell the collateral stock without regard to the damage that it was doing to the Company and its shareholders in order to fund the remaining $200,000. It is further alleged that Financial Alchemy refused to allow MSI to redeem the collateral stock because Financial Alchemy had already sold the collateral stock for a value greater than $450,000.

It is Medical Services allegation that the current price of the stock is a direct result of the illegal behavior of Financial Alchemy LLC operating on the direct instructions of Randall Goulding. Medical Services alleges that it has significant cause of action against Financial Alchemy and Randall Goulding for deliberately with malice of forethought causing the Company to be reduced in value as a result of fraud, conspiracy to defraud, material misrepresentation and a scheme to manipulate stock and take control of the Company.

For reference to a similar situation involving Goulding, please review the Tropical Beverage (TPBV) news release of March 9, 2006.

For further information, please contact Robert Talbot at [phone] or http://www.medicalservicesintl.com/ or http://www.minerva-biotech.com/ .

NOTE: Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause results to differ materially. Such risks, uncertainties and other factors include but are not limited to new economic conditions, risk in product development, market acceptance of new products and continuing product demand, level of competition and other factors described in Company reports and other filings with regulatory bodies 

DATASOURCE: Medical Services International Inc.



CONTACT:  Robert Talbot of Medical Services International Inc.,

[phone]



Web site:  http://www.medicalservicesintl.com/

http://www.minerva-biotech.com/ 

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