The Medipattern Corporation

The Medipattern Corporation

November 27, 2006 16:30 ET

Medipattern Reports First Quarter Results

Newly focused marketing and sales strategy driving activities

TORONTO, ONTARIO--(CCNMatthews - Nov. 27, 2006) -

Attention: Business/Financial Editors:

The Medipattern Corporation (TSX VENTURE:MKI), an award-winning developer of computer-aided diagnosis (CAD) software applications for medical imaging, today announced the business highlights and financial results for the quarter ended September 30th, 2006 - the first quarter of the 2007 fiscal year.

Activities in the Quarter

- B-CAD™ received Product Innovation of the Year award from Frost & Sullivan, the Company's second F&S award in less than a year;

- Continued to develop CADENZA™ suite of breast imaging and analysis software;

- Initiated new marketing program to build awareness of B-CAD and B-CAD MRI™, concentrating on Canadian, European, and US markets. Plan will include new sales hires and focus on multi-channel marketing;

- Advanced discussions with OEM and end-user sales channel partners; and

- Completed first session of sales training on B-CAD with Kodak Carestream™ sales team.

Highlights of the Financial Statements:

- Revenues (comprised of royalty income ($41 thousand), professional fees ($64 thousand), and interest ($34 thousand)) reached $138 thousand in the quarter versus $21 thousand (entirely comprised of interest income) in the same quarter of the previous year, reflecting the Company's increased business activity;

- Total expenses rose 14.3% to $682 thousand from $596 thousand in the same quarter of fiscal 2006, mostly as a result of increased sales and marketing costs;

- Resulting loss for the quarter fell 5.5% to $543,377 from $575,167 in the same quarter of the previous year;

- Monthly burn rate continues at between $225,000 to $275,000 per month, remaining slightly below budget, and offset by revenues. This amount may go up as the Company shifts its focus aggressively to sales and marketing; and

- Cash and cash equivalents total $3,744,706 at the end of the period.


"We continue to focus aggressively on sales and marketing," said Jeff Collins, President and CEO of Medipattern. "We have recently added significantly to our sales team, and welcome Janet Sterritt to its helm. As a former senior iCAD executive, her presence not only serves to validate Medipattern's unique morphology-based CAD technology in ultrasound and MRI, but underlines the Company's increasingly strong profile in the industry. Together, we are gearing up for an exciting and fruitful outing at the Radiology Society of North America conference, coming up in Chicago at the end of November."

Results of Operations (unaudited):

September September
30, 2006 30, 2005
(3 months) (3 months)
Royalty income $ 41,023 $ -
Professional fees 63,502 -
Interest 33,670 20,990
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$ 138,196 $ 20,990
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Research and development $ 299,007 $ 307,658
Finance and adminstration 222,040 247,646
Sales and marketing 153,060 34,100
Amortization of property and equipment 7,466 6,753
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$ 681,573 $ 596,157
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NET LOSS $ (543,377) $ (575,167)
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For further details concerning Medipattern's results, please see the company's filings on SEDAR (

Upcoming Events:

Medipattern will be at the Radiology Society of North America conference, November 26 to November 30, 2006, and plans to demonstrate its software at the Cedara, Kodak, and Confirma, booths.

Medipattern's Annual General Meeting is being held on December 7, 2006 at 10:00 AM EST in the Main Boardroom of WeirFoulds, Exchange Tower, 15th Floor, Toronto, Ontario. If you wish to join us there, please let us know - call Robin Sundstrom at 416-368-8770 x223.

The Medipattern Corporation develops computer-aided diagnosis (CAD) software applications for medical imaging. These applications enhance workflow while improving interpretive and diagnostic confidence. The Company's initial clinical applications are B-CAD™ for breast ultrasound and the award-winning B-CAD MRI™. The B-CAD products use pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in images of the breast. For additional information, please visit the company's website at:

B-CAD™ and B-CAD MRI™ are trademarks of The Medipattern Corporation.
Medipattern® is a registered mark of The Medipattern Corporation.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates,'' "believes,'' "estimates,'' "expects,'' "plans,'' "intends,'' "potential'', and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings, (posted at In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.

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.

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