SpaCapsule, the flagship hydro massage and sensory stimulation system from Simulated Environment Concepts, has moved well beyond being marketed as a feel-good automated massage device. As a product designed by doctors, SpaCapsule is increasing in popularity based upon its health benefits. At first the focus was primarily the reduction of aches and pains, together with its anti-stress qualities. Later, results from an independent study by Dermscan showed that SpaCapsule is effective as a tool for weight and cellulite reduction. SE Concepts is even considering formal FDA recognition for SpaCapsule regarding its therapeutic benefits.

By targeting the health market, SE Concepts takes on a new set of competitors, though competitors that approach the market from an admittedly different direction, two of which are shown below.

• Syneron Medical Ltd. (NASDAQ: ELOS) – Syneron and its subsidiaries develop and sell aesthetic medical products for things like hair removal, wrinkle reduction, and skin rejuvenation and treatment. Its products are based upon the combination of radiofrequency energy and light or laser-based energy, and have also been used for the temporary reduction in the appearance of cellulite and thigh circumference, and for various other treatments. The products are sold primarily to physicians and other medical practitioners.
• Cynosure (NASDAQ: CYNO) – Cynosure develops and sells a range of aesthetic treatment systems to the dermatology, plastic surgery, and general medical markets. Its products are based upon light-based energy sources, such as diode lasers and intense pulsed light. The various products are used for hair removal and the treatment of facial pigmentations and leg veins, as well as for LaserBodySculpting for the removal of unwanted fat, and also for wrinkles and skin appearance.

If SE Concepts ever decides to create a franchise network based upon SpaCapsule, they would also be in the same arena as a number of well-known massage franchises as well, including:

• Hand & Stone
• Massage Spa LaVida Massage
• Massage Greenelements therapeutic massage
• WoodHouse Day SpaMassaggiano
• Massage HeightsKeep in Touch
• Massage EnvyZen Massage Center
• One2One BodyScapes

The key difference between all of these potential competitors and SE Concepts is, of course, SpaCapsule.

For additional information on SE Concepts and SpaCapsule, visit www.SpaCapsule.com and their corporate website at www.SECCorporation.com

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