Simulated Environment Concepts Prepares to Fulfill Expanding Production Schedule - Major Cost Reduction to Manufacturing

  Simulated Environment Concepts (PINKSHEETS: SMEV), makers of the high pressurized dry water massage and relaxation station SpaCapsule, announced that its long anticipated plans of making an investment into the production process, both reducing the cost of manufacturing considerably and dramatically strengthening the company's cash flow and profitability, may likely come to fruition within the next few weeks.

"This will be an important benchmark for us," said Dr. Ella Frenkel, Chairman and CEO of Simulated Environment Concepts, Inc. (SE Concepts). "With a retail price tag north of $25k, if the cost of manufacturing the Spa Capsule was greatly lowered, profit margins could soar."

SE Concepts says this investment in reducing manufacturing cost, dubbed the "Production Reduction Loan" or "PRL," is not a newfound idea. Over the past six years of SE Concepts' 10 year history, the company has managed to generate a couple of million dollars yearly on average. However, in years past, between production cost and marketing expenses, the company was left to operate on tight profit margins which hampered its ability to grow. Looking forward, the PRL could contribute significantly to increased profit margins -- supporting evident growth potential and global expansion.

Dr. Ilya Spivak, Marketing Director and co-inventor of the SpaCapsule stated, "We've searched for the best method of reducing production cost for years. Now that we've identified new techniques, we intend to exploit this discovery. We will reduce cost while building a better product and improving our level of service."

There could not be a better time for SE Concepts to make this move. Already having nearly 500 units of the Spa Capsule currently contracted for delivery worldwide, with new orders, sales and distribution contracts occurring regularly, SE Concepts is primed for a rapid growth spurt over the next few years.

About Simulated Environment Concepts, Inc.

Simulated Environment Concepts, Inc. is the developer of a variety of products for wellness, relaxation, weight loss, and rehabilitation. Our aqua massage and hydromassage products are used by Doctors, Gyms, Spas, retail locations, offices, and many other venues. Incorporating oxygen, aromatherapy, massage, and even music or video from an iPod or an iPhone, our products deliver consistent results and excellent earning potential for businesses. For more information on Simulated Environment Concepts and its flagship product, SpaCapsule®, PTjetCapsule™, and Celude Laboratories™ products you can visit the company's product website at www.spacapsule.com, the corporate website at www.seccorporation.com, or request more information via email at [e-mail], or call at [phone] or [phone].

Safe Harbor

Statements in this news release that are not historical facts, including statements about plans and expectations regarding products and opportunities, demand and acceptance of new or existing products, capital resources and future financial results are forward-looking. Forward-looking statements involve risks and uncertainties which may cause the Company's actual results in future periods to differ materially from those expressed. These uncertainties and risks include changing consumer preferences, lack of success of new products, loss of the Company's customers, competition and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.

SpaCapsule is registered trademark of Simulated Environment Concepts, Inc.

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For further information, contact: At The Company: Simulated Environment Concepts Investor Relations Department [phone]