Medifocus Inc.

TSX VENTURE : MFS
PINK SHEETS : MDFZF


Medifocus Inc.

August 10, 2010 19:16 ET

Medifocus Inc. Announces Closing of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2010) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Medifocus Inc. (TSX VENTURE:MFS)(PINK SHEETS:MDFZF) ("Medifocus" or the "Company") announces the completion of a private placement of 2,449,997 Units (the "Units") at a price of $0.30 per Unit for gross proceeds of $734,999. Each unit is comprised of one Common Share and one Series A Common Share purchase warrant. Each Series A Common Share purchase warrant will entitle the holder to purchase one additional Common Share at a price of $0.50 for a period of 24 months following the closing of the offering. If, at any time prior to April 26, 2012, the daily volume weighted average trading price of the Company's common shares on the TSX Venture Exchange exceeds $0.75 for at least 10 consecutive trading days, the Company may, within 30 days of such occurrence, give an expiry acceleration notice to the holders of warrants and, if it does so, the warrants will, unless exercised, expire on the 30th day after the expiry acceleration notice is given.

Securities issued in connection with the private placement and any shares issued upon the exercise of the warrants will have a hold period in Canada until December 7, 2010.

The net proceeds of this offering will be primarily used to initiate a pivotal phase III clinical trial using the Company's Microfocus APA 1000 System for the treatment of breast cancer (including all related professional expenses) and for working capital.

Medifocus also announces that it is in the process of finalizing the previously announced debt settlement with certain third party creditors, employees and service providers. Subject to approval by the TSX Venture Exchange, Medifocus will issue an aggregate of 3,592,105 common shares at an aggregate deemed price of $0.50 per common share to settle such outstanding debt. The common shares issued will be subject to hold periods pursuant to applicable securities laws as well as the policies of the TSX Venture Exchange.

Medifocus owns a patented microwave focusing technology platform (the Adaptive Phased Array ("APA") technology), which can precisely target and control microwave energy to cause heating in cancerous tumors anywhere in the body reliably and repeatedly. The ability to target tumors with a precision controlled dose of heat can be used to destroy tumors at higher temperatures, to treat tumors in combination with chemotherapy and/or radiation at moderate temperatures for increased effectiveness and reduced toxicity and to trigger the targeted release of therapeutic drugs and genes at tumor sites at lower temperatures. While the core technology has been licensed from the Massachusetts Institute of Technology, Medifocus has further refined the precision of the microwave focusing and control ability and developed a commercial system dedicated exclusively for the treatment of Breast Cancer. Please visit www.medifocusinc.com for more details.

The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

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