The Medipattern Corporation
TSX VENTURE : MKI

The Medipattern Corporation

May 27, 2005 12:36 ET

Medipattern Announces Third Quarter Results And Significant Milestones

TORONTO, ONTARIO--(CCNMatthews - May 27, 2005) - The Medipattern Corporation (TSX VENTURE:MKI) ("Medipattern") http://www.medipattern.com a leader in the development of Computer Aided Detection (CAD) Technology for medical ultrasound, today announced third quarter, unaudited results for the period ended March 31, 2005 as well as significant milestones achieved during this quarter and immediately subsequent to the end of this reporting period.

This is Medipattern's first quarterly filing since becoming a publicly traded company on May 6, 2005. Medipattern reported an operating loss of $817,925 for the nine month period ending March 31, 2005. This compares to a loss of $433,870 for the year earlier nine month period ending March 31, 2004. The increased loss resulted from the increase in staffing resources to develop additional functionality and commercialize the CAD application. In addition, increased resources were dedicated to preparing and submitting the application for FDA approval in the USA.

To view the Unaudited Financial Statements and accompanying Notes for the fiscal period ended March 31, 2005, as well as the complete Management Discussion and Analysis, please visit http://www.sedar.com.

MILESTONES:

FINANCIAL:

- $1.265 million convertible debenture (Announced December 22, 2004)

- $3.5 million private placement closed. (Announced April 22nd, 2005)

"Our ability to raise a total of $4.765 million since December, 2004 combined with a pre-purchase of licenses totalling US$ 400,000 gives us sufficient working capital to fund our business plan" stated Mr. Mark Greenspan CFO. "Medipattern is well positioned to complete its commercialization plan, file applications with the regulatory bodies in the USA, Canada, Europe and Japan and extend our patents to protect Medipattern's lead in this segment of the breast imaging market," added Mr. Jeff Collins, CEO.

- Deferred Revenue: A pre-sale of B-CAD software licenses to Cedara Software Corporation resulted in receipt of US$ 400,000 (Announced January 21, 2005). This sale resulted from the ongoing commercial and investment relationship between the two companies. For accounting purposes, Medipattern will defer the recognition of the revenue until these licenses are re-sold to third parties.

REGULATORY:

- 510(k) FDA Application Filing: (Announced April 12th, 2005.)

Medipattern has filed for clearance with the US Food and Drug Administration ("FDA") for a CAD application for ultrasound. "We believe that having developed CAD for ultrasound first, Medipattern has a significant advantage in computer aided detection for breast imaging which has an extremely large and captive market audience, given the predominance of breast cancer. Medipattern's B-CAD™ technology will be extremely helpful in improving workflow and assisting radiologists with this challenging task," stated Mr. Collins, CEO

Medipattern is an early stage development company that develops and commercializes medical imaging software and hardware. Medipattern's lead product is a Computer Aided Detection (CAD) software application designed to analyze and automate the processing of digital images. The Company's initial clinical application of CAD is designed to aid a radiologist assess Breast Ultrasound images. B-Cad™ uses pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in ultrasound images of the breast.

FORWARD LOOKING STATEMENTS:

This news release may contain forward-looking statements that are based on the Corporation's expectations, estimates and projections, regarding its business and the health care industry in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only the date they are made and the Corporation undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances.

31,953,091 Common Shares Issued & Outstanding

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release.

Contact Information

  • The Medipattern Corporation
    Mr. Jeff Collins
    President & CEO
    (416) 744-0009 x 224
    jcollins@medipattern.com
    or
    Surefund Capital Corporation
    Gary Perkins
    Investor Relations
    (905) 889-1711 x 224 Toll Free: 1 (800) 225-2744
    garyperkins@rogers.com