The Medipattern Corporation
TSX VENTURE : MKI

The Medipattern Corporation

July 12, 2007 16:09 ET

Medipattern to Raise $5,203,000 Through Bought Deal

TORONTO, ONTARIO--(Marketwire - July 12, 2007) -

Attention: Business/Financial Editors

Medipattern Corporation (TSX VENTURE:MKI), an award-winning developer of computer-aided diagnosis (CAD) software for medical imaging, whose mission is to design software products that save lives, detect cancer, and permit a higher standard of care for the millions of patients at risk of cancer, today announced that it has entered into an agreement with Research Capital Corporation to purchase on a bought-deal basis 4,730,000 common shares ("Common Shares") from the Company at a price of $1.10 per Common Share for aggregate gross proceeds of $5,203,000 (the "Offering"). Research Capital Corporation will also have an option, exercisable for a period of 30 days following the closing date, to purchase from the Company up to an additional 15% of the Common Shares for gross proceeds of $5,983,450 to cover over-allotments and for market stabilization purposes. The Company intends to use the net proceeds of the Offering for capacity expansion, working capital and general corporate purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation, or sale would be unlawful.

The Medipattern Corporation

Medipattern develops computer-aided diagnosis (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-CAD MRI™. Both have received awards for innovation in the industry. The B-CAD products use pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in images of the breast. Medipattern's was founded to design software products that save lives, detect breast cancer and reduce the number of unnecessary biopsies in women referred for diagnosis of potential breast cancer. Please visit the Company's website at: www.medipattern.com.

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

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