The Medipattern Corporation
TSX VENTURE : MKI

The Medipattern Corporation

November 14, 2005 10:02 ET

Medipattern Reports First Quarter 2006 Results

TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2005) -

Attention: Business/Financial Editors:

The Medipattern Corporation (TSX VENTURE:MKI), a leading developer of computer-aided detection (CAD) software applications for medical imaging, today announced its business highlights and financial results for the first quarter ended September 30th, 2005.

Highlights of the Quarter:

- Initiated a Luminary Program involving leading radiologists at six medical institutions throughout North America, in order to build clinical validation and acceptance of B-CAD™;

- Began Beta-testing of B-CAD at three of these sites;

- Appointed Medipattern's Medical Advisory Board, headed by Dr. Thomas Stavros;

- Approved B-CAD for General Market Availability (GMA);

- Demonstrated B-CAD at the Breast Imaging Conference in Orlando, Florida.

Medipattern continues to focus on marketing its B-CAD software for breast ultrasound following its 510(k) clearance by the US Food and Drug Administration (FDA) in May of 2005. Still classified as a "development stage" company, Medipattern has not yet posted any revenues from operations and all income earned was interest income.

Net loss for the first quarter ended September 30, 2005 increased to $575,167 compared to a loss of $72,796 in the same period in fiscal 2005. The quarter-over-quarter comparison is not relevant since in the first quarter of fiscal 2005 activity was held to a minimum pending appropriate financing.

Expenses in the first quarter of fiscal 2006 rose to $596,157 from $73,033 for the same period in the previous year. Again, the comparison to the prior quarter has little relevance. The increase in expenses in the first quarter of fiscal 2006 related primarily to increases in salaries and benefits for administration expenses of $101,555 as a result of the resumption of salary payments to the CEO and CFO and, for research and development expenses of $138,755 resulting from the hiring of a full-time Chief Technology Officer and other development staff; consulting and contract programming expenses of $133,500; stock compensation expenses of $37,754; and costs relating to Medipattern's public company status.

The company anticipates that costs will stay at approximately $225,000 per month at least until its launch of a second clinical application, expected early in calendar 2006. With $3,085,441 in cash and cash equivalents at September 30, 2005, Medipattern has sufficient cash on hand to see it through December 2006 under current conditions.

Recent Events:

In November, Medipattern's marketing partner, Cedara, released its version of B-CAD, Cedara B-CAD™ 1.0, thereby making Medipattern's B-CAD commercially available. This allows Medipattern to begin to recognize the previously announced deferred revenue of C$492,280 as actual revenue. Also in November, Medipattern successfully completed the registration of its Quality Management System to both the ISO 13485:2003 standard and the requirements of the Canadian Medical Devices Conformity Assessment System (CMDCAS), positioning Medipattern for commercial adoption of its products internationally.

Outlook:

"Medipattern continues to press forward with commercialization efforts for B-CAD, our initial software product," said Jeff Collins, President and CEO of Medipattern. "In the first quarter of fiscal 2006, Medipattern began to attract increased attention from the breast cancer community. First, the trade media has been very attentive, and Medipattern's B-CAD has garnered several articles, in journals such as: Imaging Technology News; Health Imaging and IT; Applied Radiology; and Clinica World Medical Device & Diagnostics. Second, Medipattern's luminary program has received highly encouraging response from its participants, broadening the Company's marketing reach. Our channel partner, Cedara (a division of Merge Healthcare (NASDAQ: MRGE; TSX: MRG), has made its version of B-CAD, Cedara B-CAD™, commercially available in its i-ReadMammo™, a multi-modality breast imaging suite."

Upcoming Presentations by Medipattern

- Medipattern will be demonstrating its B-CAD software in both the Cedara Software and Merge Healthcare booths at the RSNA Annual Meeting from November 27 to December 2, 2005, at McCormick Place in Chicago at Booth Numbers 1315 and 1918 respectively.

For further details concerning Medipattern's results, please see the company's filings on SEDAR (www.sedar.com).

About The Medipattern Corporation

The Medipattern Corporation develops computer-aided detection (CAD) software applications for medical imaging. Medipattern's core technology is a software platform designed to analyze and automate the processing of medical digital images. The Company's initial clinical application is CAD for breast ultrasound (B-CAD™). B-CAD uses pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in ultrasound images of the breast. For additional information, please visit the company's website at: www.medipattern.com.

B-CAD™ is a trademark of The Medipattern Corporation.

Cedara B-CAD™ is a trademark of Cedara Software Corp.

Forward-Looking Statements

This document contains forward-looking statements relating to Medipattern's financial performance, operations, or operating environment, which are based on Medipattern's operations, estimates, forecasts, and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the company's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the company's corporate filings, (posted at www.sedar.com). Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, Medipattern cannot be certain that actual results will be consistent with these forward-looking statements, and the company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange has in no way passed on the merits of the transaction described herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved of the contents of this release.

Contact Information

  • The Medipattern Corporation
    Jeff Collins
    President & CEO
    (416) 744-0009 x224
    or
    The Medipattern Corporation
    Mark Greenspan
    CFO
    (416) 744-0009 x 234
    or
    Ciris Investor Relations
    Robin Sundstrom
    President
    (416) 368-8770 x223
    or
    Ciris Public Relations
    Jeff Lake
    President
    (905) 617-0413