WEQL WellQuest Medical and Wellness Corp (CE)

WellQuest Medical & Wellness Corporation (the "Company" or "WellQuest") (PINKSHEETS: WEQL), reported record operating income of $558,328 from its Bentonville site for the fiscal year December 31, 2010. This marks an increase over operating income of $554,312 in fiscal 2009. The growth in operating income came on slightly reduced revenues of $3,673,604 offset by lower direct operating expenses, excluding intercompany charges, of $3,115,276 for the fiscal year ended December 31, 2010. This marks three consecutive years of growth in operating income for WellQuest operations.

As reported in the Company's 2010 annual filing, the Company's reduction in SEC related expenses beginning in the second quarter of 2010, along with reduction in interest and other operating expenses, allowed the Company to achieve positive consolidated net income of $62,372 in the 3rd and 4th quarters of 2010. This reduced the company's annual consolidated loss to $(81,069) for the fiscal year ended December 31, 2010, a 76% reduction from a consolidated loss of $(262,797) in 2009.

"The continued success of our Bentonville facility substantiates our goal to grow the WellQuest brand by replicating our model across the country. Our flagship location has been increasingly profitable for the past three years. This reflects our client's positive response to our customer focused concept: an upscale environment where clients receive excellent and convenient medical care integrated with wellness and preventative services, and advanced skin care and aesthetic services. This integration results in a comfortable and trusted location to meet a family's primary healthcare needs. Our approach to healthcare goes beyond just treating sickness, and we are finding more corporations who want this for their employees. Disease prevention, weight-loss, nutritional supplements and aesthetics address the broader spectrum of health concerns for more of today's families and health conscious businesses," stated WellQuest President Steve Swift.

WellQuest seeks to lead its customers in their personal "Quest for Wellness." The Company's aim is to make a positive difference in the health and lives of its staff, its clients and its community. In 2010, the Bentonville site had 39,705 total client visits with 80% of the visits from repeat customers and 20% of all visits being new clients.

WellQuest intends to replicate its positive integrative medical experience by opening branded WellQuest facilities in other metropolitan areas of the U.S. The Company believes families and businesses are seeking options in the U.S. where annual sick care costs exceed $2.5 trillion, approaching 17% of GDP, and yet our nation ranks below many other nations in health status. WellQuest is a relevant option toward treatment, prevention and wellness. The Company's business is aimed at the evolving healthcare market which includes a $500 billion physician services sector, an $86 billion nutraceutical sector, a $12 billion cosmeceutical sector, and a $12.8 billion spa/medical spa sector. These sectors have traditionally been segregated in their delivery of services and products. WellQuest brings them together in a way that meaningfully serves its customers.

About WellQuest Medical & Wellness Corporation WellQuest offers its innovative concept in healthcare delivery by integrating conventional and complementary physician medicine with wellness, and aesthetic services in one center, creating an effective environment for the pursuit and maintenance of a healthy life. WellQuest's unique model for healthcare helps customers get well, stay well, and look well. Currently operating in Bentonville, Arkansas, WellQuest seeks to open additional locations in the U.S.

Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to obtain the necessary financing to continue and expand operations, to market its products and services in new markets and to offer healthcare services at competitive pricing, anticipated revenue from client visits; general economic conditions and other factors detailed from time to time in the Company's filings with the United States Securities and Exchange Commission and other regulatory authorities. These statements include, without limitation, statements regarding our ability to prepare the Company for growth; the Company's planned expansions, and predictions and guidance relating to the Company's future financial performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

                  WELLQUEST MEDICAL & WELLNESS CORPORATION

                        Consolidated Balance Sheets

                         December 31, 2010 and 2009

                                                    2010           2009
                                               -------------  -------------
Assets
Current assets:
  Cash                                         $      11,411  $      49,700
  Accounts receivable, less allowances of
   $251,084 and $245,388 at December 31, 2010
   and 2009, respectively                            181,018        294,246
  Other current assets                                58,634         70,777
                                               -------------  -------------

Total current assets                                 251,063        414,723

Property and equipment, net                          193,870        279,967
Deferred financing costs, net of accumulated
 amortization of $64,808 and $27,775 at
 December 31, 2010 and 2009, respectively             46,292         83,325
                                               -------------  -------------

                                               $     491,225  $     778,015
                                               =============  =============

Liabilities and Stockholders' Deficit
Current liabilities:
  Line of credit                               $     110,000  $     167,500
  Accounts payable                                    86,715        309,778
  Accrued liabilities                                234,152        155,783
  Due to physicians and related parties              677,104        598,230
  Note payable to related party                       40,000         40,000
  Current maturities of long-term debt               305,883        408,920
  Current obligations under capital leases            33,165         28,155
  Current maturities of subordinated
   debentures payable to stockholders                491,497        493,497
                                               -------------  -------------

Total current liabilities                          1,978,516      2,201,863
Long-term obligations under capital leases,
 less current portion                                 57,327         90,492
Subordinated debentures payable to
 stockholders, less current maturities               443,123        443,123
                                               -------------  -------------

Total liabilities                                  2,478,966      2,735,478
                                               -------------  -------------

Stockholders' deficit:
  Preferred stock - $.01 par value; authorized
   2,500,000 shares; 75,000 shares designated
   as Series A convertible preferred stock;
   25,515 shares issued and outstanding at
   December 31, 2010 and 2009                            255            255
  Common stock - $.001 par value; authorized
   150,000,000 shares; 29,335,167 and
   29,272,667 shares issued and outstanding at
   December 31, 2010 and 2009, respectively           29,335         29,273
  Additional paid-in capital                       1,561,012      1,510,283
  Warrants                                           177,000        177,000
  Accumulated deficit                             (3,755,343)    (3,674,274)
                                               -------------  -------------
Total stockholders' deficit                       (1,987,741)    (1,957,463)
                                               -------------  -------------

Total liabilities and stockholders' deficit    $     491,225  $     778,015
                                               =============  =============



                  WELLQUEST MEDICAL & WELLNESS CORPORATION

                   Consolidated Statements of Operations

                   Years ended December 31, 2010 and 2009

                                                    2010           2009
                                               -------------  -------------

Net revenues                                   $   3,673,604  $   3,823,994

Operating expenses:
  Salaries, wages and benefits                     1,257,840      1,247,574
  Rents and facility expenses                        275,364        287,131
  Clinic direct expenses, excluding salaries,
   wages and benefits                              1,404,626      1,527,040
  Spa direct expenses, excluding salaries,
   wages and benefits                                282,420        295,639
  General corporate expenses                         246,161        389,646
  Depreciation and amortization                       97,754        115,625
                                               -------------  -------------

Total operating expenses                           3,564,165      3,862,655
                                               -------------  -------------

Operating income (loss)                              109,439        (38,661)

Interest expense                                    (190,508)      (224,136)
                                               -------------  -------------

Net loss                                       $     (81,069) $    (262,797)
                                               =============  =============

Loss per common share:
  Basic and diluted                            $      (0.003) $      (0.010)
                                               =============  =============

Weighted average number of common shares and
 dilutive common share equivalents
 outstanding:
  Basic and diluted                               29,330,201     26,867,425
                                               =============  =============

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Investor and Media Contact: Steve Swift President 918-361-4192 Email Contact