PST ProShares UltraShort Lehman 7 10 Year Treasury

Patient Safety Technologies, Inc. (AMEX:PST) provides further financial information. The Company anticipates that third-quarter revenue will rise to $122,000 from $30,000 a year earlier and net losses will decrease to $2.0 million, or 31 cents per diluted share, from $2.2 million, or 39 cents per share, in 2005. Revenue from the Company's car wash services segment of $104,000 accounted for 85 percent of the Company�s revenue while revenue generated from the medical products segment, which marked the first quarter that the Company recognized revenue in its medical products segment, of $18,000 accounted for the remaining 15 percent. Included in the Company�s estimated loss of $2.0 million is approximately $675,000 in non-cash charges related to depreciation, amortization, debt discount and stock-based compensation expenses. While the Company believes these estimates have been prepared in accordance with generally accepted accounting principles, actual results may change upon final review of the Company�s financial results by its independent accountants. The Company continues to have limited to no funds and operates through loan agreements and revolving lines of credit. PST also announced today that its Board has authorized management to initiate specific steps of a new restructuring plan. The Company, in cooperation and support from several of PST�s largest shareholder groups, including Bodnar Capital Management, LLC (�BCM�), has taken steps in which it believes will be extremely positive for its shareholders, including: Securing an estimated $1 Million bridge loan with BCM and other strategic investors Restructuring a majority of the Company�s short-term debt Engaged Trinity River Advisors, an outside, independent advisor and Chief Restructuring Officer (�CRO�) to assist PST with its restructuring plan (www.trinityriveradvisors.com) Engaged Peterson & Co, LLP, the Company�s new independent auditor The Board has determined at this time, after reviewing purchase offers for SurgiCount Medical, the Company�s primary subsidiary, and discussing with the new CROs, to evaluate ALL options or alternatives available regarding SurgiCount in order to optimize value for PST shareholders. Further, PST is no longer in default to any of its creditors regarding the Company�s loan agreements or its loan covenants. The Company has reached newly executed or tentative agreements with its creditors to restructure its short-term debt that will greatly affect the working capital deficiencies of the Company. �I anticipate that this debt restructuring will dramatically strengthen our balance sheet, ultimately moving approximately $3.5 million of short-term debt that was included in the Company�s June 30, 2006 $5.8 million working capital deficit to long-term debt,� said Milton �Todd� Ault III, Chairman and CEO of PST. Additionally, the Company announces it has engaged Peterson & Co, LLP as the Company�s new independent auditors, who will begin work immediately to assist the Company with its next Form 10-Q filing and all future filings. The Company hopes to file its September 30, 2006 10-Q on time, but will keep investors apprised of the filing given the Company�s engagement of new auditors. The Company also announces it has appealed the American Stock Exchange's (�Amex�) delisting determination and will provide Amex with its restructuring plan, including the above-mentioned bridge loan, restructured debt and plans to bring new capital into the Company, which the Company believes will bring it back into compliance with Amex�s continued listing standards. About Patient Safety Technologies, Inc. Patient Safety Technologies, Inc. (PST) is a holding company that owns assets in various businesses. Its wholly-owned subsidiary, SurgiCount Medical, Inc., is a developer and manufacturer of patient safety products and services. For more information on Patient Safety Technologies, Inc., please contact the company directly at 310-895-7750, or by email at info@patientsafetytechnologies.com or www.patientsafetytechnologies.com. About SurgiCount and the Safety-Sponge� System SurgiCount Medical's Safety-Sponge System works much like a grocery store check-out system. Every surgical sponge and towel is pre-labeled by the manufacturer with an individual and unique bar coded label, and a scanning counter is used to read and record the labels. No change is required in a hospital's established counting procedures: sponges are counted and recorded by the system at the beginning of the procedure and again as they are removed from the patient. For more information, visit www.surgicountmedical.com. Forward-Looking Statements This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Patient Safety Technologies plans, expects, should, believes, anticipates or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Patient Safety Technologies does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Patient Safety Technologies, Inc. (AMEX:PST) provides further financial information. The Company anticipates that third-quarter revenue will rise to $122,000 from $30,000 a year earlier and net losses will decrease to $2.0 million, or 31 cents per diluted share, from $2.2 million, or 39 cents per share, in 2005. Revenue from the Company's car wash services segment of $104,000 accounted for 85 percent of the Company's revenue while revenue generated from the medical products segment, which marked the first quarter that the Company recognized revenue in its medical products segment, of $18,000 accounted for the remaining 15 percent. Included in the Company's estimated loss of $2.0 million is approximately $675,000 in non-cash charges related to depreciation, amortization, debt discount and stock-based compensation expenses. While the Company believes these estimates have been prepared in accordance with generally accepted accounting principles, actual results may change upon final review of the Company's financial results by its independent accountants. The Company continues to have limited to no funds and operates through loan agreements and revolving lines of credit. PST also announced today that its Board has authorized management to initiate specific steps of a new restructuring plan. The Company, in cooperation and support from several of PST's largest shareholder groups, including Bodnar Capital Management, LLC ("BCM"), has taken steps in which it believes will be extremely positive for its shareholders, including: -- Securing an estimated $1 Million bridge loan with BCM and other strategic investors -- Restructuring a majority of the Company's short-term debt -- Engaged Trinity River Advisors, an outside, independent advisor and Chief Restructuring Officer ("CRO") to assist PST with its restructuring plan (www.trinityriveradvisors.com) -- Engaged Peterson & Co, LLP, the Company's new independent auditor The Board has determined at this time, after reviewing purchase offers for SurgiCount Medical, the Company's primary subsidiary, and discussing with the new CROs, to evaluate ALL options or alternatives available regarding SurgiCount in order to optimize value for PST shareholders. Further, PST is no longer in default to any of its creditors regarding the Company's loan agreements or its loan covenants. The Company has reached newly executed or tentative agreements with its creditors to restructure its short-term debt that will greatly affect the working capital deficiencies of the Company. "I anticipate that this debt restructuring will dramatically strengthen our balance sheet, ultimately moving approximately $3.5 million of short-term debt that was included in the Company's June 30, 2006 $5.8 million working capital deficit to long-term debt," said Milton "Todd" Ault III, Chairman and CEO of PST. Additionally, the Company announces it has engaged Peterson & Co, LLP as the Company's new independent auditors, who will begin work immediately to assist the Company with its next Form 10-Q filing and all future filings. The Company hopes to file its September 30, 2006 10-Q on time, but will keep investors apprised of the filing given the Company's engagement of new auditors. The Company also announces it has appealed the American Stock Exchange's ("Amex") delisting determination and will provide Amex with its restructuring plan, including the above-mentioned bridge loan, restructured debt and plans to bring new capital into the Company, which the Company believes will bring it back into compliance with Amex's continued listing standards. About Patient Safety Technologies, Inc. Patient Safety Technologies, Inc. (PST) is a holding company that owns assets in various businesses. Its wholly-owned subsidiary, SurgiCount Medical, Inc., is a developer and manufacturer of patient safety products and services. For more information on Patient Safety Technologies, Inc., please contact the company directly at 310-895-7750, or by email at info@patientsafetytechnologies.com or www.patientsafetytechnologies.com. About SurgiCount and the Safety-Sponge(TM) System SurgiCount Medical's Safety-Sponge System works much like a grocery store check-out system. Every surgical sponge and towel is pre-labeled by the manufacturer with an individual and unique bar coded label, and a scanning counter is used to read and record the labels. No change is required in a hospital's established counting procedures: sponges are counted and recorded by the system at the beginning of the procedure and again as they are removed from the patient. For more information, visit www.surgicountmedical.com. Forward-Looking Statements This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Patient Safety Technologies plans, expects, should, believes, anticipates or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Patient Safety Technologies does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.