The Medipattern Corporation

The Medipattern Corporation

November 26, 2007 06:30 ET

Medipattern Reports Results for First Quarter of Fiscal 2008

Positive Momentum Leading To Multiple Product Launches at RSNA

TORONTO, ONTARIO--(Marketwire - Nov. 26, 2007) -

Attention: Business/Financial Editors:

The Medipattern Corporation (TSX VENTURE:MKI), an award-winning developer of computer-aided detection (CAD) medical imaging software designed to aid physicians in making better informed biopsy decisions and to permit a higher standard of care for the millions of patients at risk of breast cancer, today announced its business highlights and unaudited financial results for the first quarter ended September 30th, 2007.

"The result of our hard work this quarter has lead to the debut of B-CAD for ultrasound with a major OEM and in MRI with the leader in MRI CAD installations. Medipattern has spent the past quarter ramping up for new sales and new product lines arising from its major sales and development agreements on the ultrasound side with GE Healthcare and on the MRI side with Confirma," said Jeff Collins, CEO of The Medipattern Corporation. "The B-CAD™ products have demonstrated their effectiveness in practice management, breast imaging interpretation, reporting, and overall conformity with the American College of Radiologists' Breast Imaging Reporting and Data System (BI-RADS®) lexicon. These products are being well received in all markets and we are anticipating an excellent showing at RSNA."

Highlights of the First Quarter Ended September 30, 2007:

- July: Medipattern and HealthcareIQ teamed up to support the reimbursement process for B-CAD to enable Medipattern's customers easier access to payer-specific benefit plan rules, coding guidelines, and medical necessity protocols;

- August: Announced the successful completion of a $5.2 million bought-deal financing with Research Capital Corp., issuing 4,730,000 common shares at a price of $1.10 per common share;

- August: Announced the closing of the over-allotment option associated with the bought-deal financing for total proceeds of $521,290;

- September: Announced the expansion of the B-CAD line with seven new products in time for the RSNA show in November. New products included six new versions of B-CAD for breast ultrasound imaging, and one new version of B-CADMRI for magnetic resonance imaging.

Financial Highlights of the First Quarter:

- Revenues in the first quarter of fiscal 2008, comprised of royalty income ($88 thousand in the 3 months, up substantially from the $41 thousand posted in the same quarter in the previous year), professional fees ($42 thousand, compared to $64 thousand in the first quarter of fiscal 2007), and interest income ($46 thousand, compared to $34 thousand in the same quarter of fiscal 2007), reached $175 thousand, versus total revenues of $138 thousand in the first three months of fiscal 2007;

- Total expenses in the first quarter of fiscal 2008 rose to $802 thousand versus $682 thousand in the first quarter of fiscal 2007, mostly as a result of increased research & development and sales & marketing costs. Quarter-over-quarter, research and development expenses increased to $342 thousand from $299 thousand in the same quarter of the previous year. Administration and product support costs rose to $248 thousand in the first quarter of fiscal 2008 versus $222 thousand in the same quarter of the previous fiscal year, while sales and marketing expenses reached $202 thousand in the first quarter of fiscal 2008 versus $153 thousand in the same period in fiscal 2007.

- Resulting net loss for the first quarter of the current fiscal year rose to $627 thousand from $543 thousand for the same period in the previous year;

- Monthly operating cash requirements are anticipated to rise to between $325,000 and $375,000 per month in fiscal 2008, although the average monthly run rate in this quarter was closer to $210,000. In general, the amount will increase as the Company expands its efforts in sales and marketing; and

- Cash and cash equivalents totaled $6,165,574 at the end of first quarter of fiscal 2008, compared to $3,744,706 at the end of the first quarter of the prior year.

Subsequent to the end of the first quarter, the Board of Directors of Medipattern granted an aggregate of 803,000 incentive stock options to certain employees, directors, officers, and consultants of Medipattern effective November 14, 2007. The Options are exercisable for a period of five years from the date of grant at $1.25 a share, being the previous day's closing price of Medipattern shares on the TSX Venture Exchange.


"Medipattern is beginning to see positive results from its strategic positioning. With more than 20 resellers globally, recognized key OEMs including GE Healthcare and Confirma, strong favourable feedback from our luminary installations around the world, and improved business and practice management results from B-CAD customers, the major components of our plan for future growth are in place," said Jeff Collins, President and CEO of Medipattern. "We have put several new versions of both B-CAD and B-CADMRI in place for RSNA, and anticipate favourable reaction to our first standalone display at the show. We will continue to look for imaging opportunities in other modalities where our pattern recognition software can add value."

Results of Operations:


2007 2006
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Royalty income $ 88,043 $ 41,023
Professional fees 41,666 63,502
Interest income 45,756 33,671
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175,465 138,196
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Research and development 342,313 299,007
Administration and product support 248,283 222,040
Sales and marketing 203,248 153,060
Amortization of property and equipment 8,453 7,466
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802,298 681,573
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NET LOSS (626,833) (543,377)

DEFICIT, BEGINNING OF PERIOD (8,617,740) (6,032,246)
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DEFICIT, END OF PERIOD $ (9,244,573) $ (6,575,623)
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For further details concerning Medipattern's results, please see the Company's filings on SEDAR. (

Upcoming Events:

Medipattern is participating in the following events:

- Radiological Society of North America (RSNA) booth 5515, November 25 to 29, 2007, Chicago, IL.

- European Congress of Radiology, March 7 to 11, Vienna, Austria.

The Medipattern Corporation

Medipattern develops computer-aided detection (CAD) solutions for medical imaging. These products enhance workflow while improving interpretive and diagnostic confidence. The Company's initial clinical applications are B-CAD™ for breast ultrasound and B-CADMRI™. Both have received awards for innovation in the industry. The B-CAD products, part of the Company's CADENZA™ platform, use pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in images of the breast. 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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