The Medipattern Corporation
TSX VENTURE : MKI

The Medipattern Corporation

October 21, 2005 06:30 ET

Medipattern Reports Fiscal 2005 Results

TORONTO, ONTARIO--(CCNMatthews - Oct. 21, 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 the business highlights and financial results for its financial year ended June 30th, 2005. The Medipattern Corporation continues to focus on marketing its B-CAD™ software for breast ultrasound and take advantage of its first-to-market position.

As a company in the development stage, Medipattern has not yet earned any operating revenues. However, it has deferred revenues of $492,000 related to a pre-sale of licenses for its B-CAD software to Cedara Software, Medipattern's marketing partner. The revenue will be recognized when Cedara makes B-CAD commercially available in fiscal 2006. To date, all income earned has been interest income. Net loss for the fiscal year ended June 30, 2005 was $1,287,887 compared to a loss of $465,877 for the fiscal year ended June 30, 2004. With $3,659,136 in cash and cash equivalents at June 30, 2005 and a current burn rate of approximately $225,000 per month, Medipattern has sufficient cash on hand to see it through December 2006.

Highlights:

- Concluded a marketing agreement on September 4, 2004 with Cedara Software (now Merge Healthcare) to market and sell B-CAD;

- Raised a total of $4.76 million in two private placements by April 22, 2005;

- Commenced trading under symbol MKI on the TSX Venture Exchange on May 6, 2005;

- Received 510(k) clearance for B-CAD from the US Food & Drug Administration on May 26, 2005;

- Initiated a Luminary Program involving leading radiologists at six sites throughout North America, in order to build clinical validation and acceptance of B-CAD (announced August 9, 2005).

Outlook:

"Notwithstanding the limited resources in the first half of the year, Medipattern was still able to move into commercialization of its initial software product," said Jeff Collins, President and CEO of Medipattern. "I am most pleased with our accomplishments in fiscal 2005, and to date in fiscal 2006. We continue to make significant progress in advancing our development and marketing goals. We are confident that along with our channel partner Cedara (a division of Merge Healthcare (NASDAQ:MRGE) (TSX:MRG), we will have a strong showing at the Radiological Society of North America (RSNA) Annual Meeting later this year and generate sales opportunities that take advantage of our unique product position in CAD for ultrasound."

Upcoming Presentations by Medipattern

- Medipattern's Annual General Meeting of Shareholders will be held on Monday, November 14, 2005, at 10:00 AM in Suite 1600 at The Exchange Tower, 130 King Street West, in Toronto.

- 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.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's financial performance, operations or to the environment in which it operates, 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 does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved of the contents of this release. The TSX Venture Exchange has in no way passed on the merits of the transaction described herein.



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
    www.medipattern.com.
    or
    Ciris Investor Relations
    Robin Sundstrom
    President
    (416) 368-8770 x223
    or
    Ciris Public Relations
    Jeff Lake
    President
    (905) 617-0413