Entest BioMedical (OTCBB: ENTB) - Up to $2.0 million in potential annual revenues

Entest BioMedical Inc. (OTCBB: ENTB) has signed a letter of intent (LOI) to acquire three veterinary hospitals located in Southern California. These three veterinary hospitals are sister businesses which Entest has been informed generated a combined historic revenue stream of $900,000 per year.

David Koos, CEO of Entest, stated yesterday in a press release:

"Based on historical performance, the successful acquisition of these three hospitals could result in a potential $900,000 per year increase in our overall revenue. This veterinary hospital group's three Orange County area facilities are located in extremely affluent communities whose strong economic base should support business expansion."

Mr. Koos also noted the potential revenue stream from the three hospitals combined with potential revenue from an unrelated previously disclosed pending acquisition "could put Entest on pace to produce $2 million per year in revenue once these transactions are closed."

This acquisition follows on from a press release earlier in the month when Entest announced the Company has entered into escrow on the proposed purchase of a veterinary hospital located in Southern California.

Mr. Koos stated at that time:

"I'm excited about this potential acquisition. Not only does it represent a second spoke in our distribution wheel for ImenVax™ and other potential products but we believe it should bring us approximately $500,000 per year in near term revenue. We have already acquired the McDonald Animal Hospital and, once this new acquisition is made, we expect our near term revenue from these two veterinary hospitals to exceed $1.1 million on an annualized basis."

ImenVax™ is an immuno-therapeutic cancer vaccine for dogs currently under development by Entest. The Company recently announced the initiation of a collaboration with RenovoCyte LLC and Medistem Inc. to explore the development of a stem cell therapy for treating hip dysplasia in dogs..

Entest has increased the number of veterinarians at the McDonald Animal Hospital ("MAH") located in Santa Barbara, California, and has begun an aggressive marketing campaign in the Santa Barbara area to create public awareness of MAH's involvement with stem cell therapy for animals and immuno-therapeutic cancer vaccines for dogs. Entest acquired the McDonald Animal Hospital on January 4, 2011.

Entest BioMedical (OTCBB: ENTB) is a developer of veterinary medicines that harness the animal's own reparative / immunological mechanisms. The company's products include an immuno-therapeutic cancer vaccine for canines (ImenVax™). The company's immuno-therapeutic cancer vaccine utilizes an encapsulation device as the vaccine delivery system and requires a simple implant procedure.