The Medipattern Corporation

The Medipattern Corporation

May 13, 2008 06:30 ET

Medipattern Reports Results for Third Quarter of Fiscal 2008

TORONTO, ONTARIO--(Marketwire - May 13, 2008) -

Attention: Business/Financial Editors:

The Medipattern Corporation ("Medipattern") (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 third quarter and nine-months ended March 31, 2008.

"Medipattern is the first and only manufacturer of CAD for breast ultrasound approved by Canadian CMDCAS, US FDA and recently announced SFDA from China. Medipattern is poised for release into the Chinese market currently estimated by Frost and Sullivan at 28,000 level 2 and 3 medical facilities. Launching to China will be rolled out through the PLA301, China's leading Hospital as they deploy B-CAD as part of their breast protocol to increase the survival rate of breast cancer patients in China," said Jeff Collins, CEO of Medipattern. "We continued the momentum generated last quarter with our debut at RSNA and have been actively marketing with GE Healthcare in support of their B-CAD launch including participation in GE's Women's Healthcare continuing education lectures in the United Kingdom and showcasing B-CAD in GE's booths at conferences in Europe and the United States. With more than 50 installations worldwide, we are most pleased to welcome our latest customers to our increasing base. B-CAD is recognized for its clinical effectiveness, its ability to improve consistency, and its ability to save time."

Business Highlights in Calendar 2008:

- February 2008 - Medipattern announced the publication of a China study showing a significant 44 percent increase in diagnostic accuracy when using B-CAD V2 on lesions less than 1 cm in size (B-CAD V2 is only available outside the United States).

- March 2008 - Medipattern expands its global base with the installation of B-CAD 2.2 at General Hospital in Salzburg, Austria.

- April 2008 - Medipattern's OEM partner SonoCine Inc. successfully demonstrates whole breast ultrasound powered by Medipattern software as an effective method for breast screening in China.

- April 2008 - Medipattern completes first B-CAD installation in a Multi-Site private practice in New York making B-CAD part of its standard diagnostic procedure.

- April 2008 - Medipattern B-CAD receives State FDA approval in China. Beijing Eastwide Medical, Medipattern's reseller in China places initial orders.

Financial Highlights of the Third Quarter:

- Revenues in the third quarter of fiscal 2008 reached $209 thousand, versus $113 thousand in the same quarter of fiscal 2007. For the nine month period ended March 31, 2007, Medipattern reported revenues of $600 thousand versus $328 thousand in the corresponding period in fiscal 2007;

- Operating expenses in the third quarter of fiscal 2008 totaled $1.02 million versus $698 thousand in the third quarter of fiscal 2007, primarily due to additional investment in research & development and sales & marketing in support of the Company's ultrasound product launch with GE Healthcare. For the nine months ended March 31, 2008, operating expenses were $2.92 million versus $2.06 million in the same nine-month period in fiscal 2007;

- Resulting net loss for the third quarter of the current fiscal year was $813 thousand ($0.02 per share) versus $644 thousand ($0.02 per share) for the same period in the previous year. For the nine months ended March 31, 2008, Medipattern reported a net loss of $2.32 million ($0.05 per share) compared to a net loss of $1.73 million ($0.05 per share) in the same period in fiscal 2007;

- As at March 31, 2008, cash and cash equivalents totaled $4.42 million, current assets were $4.96 million (June 30, 2007 - $2.1 million) and current liabilities were $411 thousand (June 30, 2007 - $477 thousand). During the third quarter of 2008, working capital decreased from $5.2 million as at December 31, 2007 to $4.5million as at March 31, 2008 as a result of ongoing operating losses during the three-month period of fiscal 2008.

Results of Operations:

FOR THE 9 and 3 MONTHS ENDED March 31, 2008 AND 2007

March March March March
31, 2008 31, 2007 31, 2008 31, 2007
(9 months) (9 months) (3 months) (3 months)
Royalty income $ 224,222 $ 136,991 $ 67,671 $ 54,944
Professional fees 226,125 100,090 94,443 37,134
Interest 150,089 91,074 46,578 20,553
600,436 328,155 208,692 112,631
Research and
development 1,076,963 746,069 362,299 170,108
and product
support 1,029,421 711,213 388,334 265,611
Sales and
marketing 776,746 578,325 257,929 255,965
Amortization of
property and
equipment 32,427 21,523 12,645 6,219
2,915,556 2,057,130 1,021,207 697,903

UNDERNOTED (1,728,975) (585,272)

Writedown of
charges (58,701) (58,701)

NET LOSS $ (2,315,121) $ (1,787,676) $ (812,515) $ (643,973)

For further details concerning Medipattern's results, please see the Company's filings on SEDAR. (

2008 Upcoming Events:

Medipattern is participating in the following events:

- 33rd National Conference on Breast Cancer, American College of Radiology (ACR) Society of Breast Imaging (SBI), May 8 to 10, Orlando, FL, USA

- The Leading Edge Ultrasound Conference, May 20 to 23, Atlantic City, NJ, USA exhibiting with partner: GE Healthcare

- V Simposio de La Asociacion Radiologica e Imagenes Diagnosticas De Bogota, May 30 to 31, Bogota, Columbia

- Chicago International Breast Course, September 11 to 14, Chicago, IL, USA

- Radiological Society of North America (RSNA), November 30 to December 5, Chicago, IL, USA

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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