877-277-7848

      TORONTO, ONTARIO, May 30, 2012 (MARKETWIRE via COMTEX) —
      The Medipattern Corporation


      /quotes/zigman/377611 CA:MKI
      -1.72%



      (“Medipattern” or
      the “Company”) is pleased to report third quarter highlights and
      results from the Company’s 2012 financial year, to March 31,
      2012.

      
      
              
              HIGHLIGHTS FOR THE QUARTER:
              --  Installed Visualize:Vascular(TM) in 23 facilities which have a combined
                  total of 154 sites;
              --  Established that average reimbursement across market segment (surgeons,
                  radiologists, cardiologists and primary care physicians) is consistent
                  with CMS (Medicare) fee schedule for all major payers;
              --  Increased scanning volumes month over month (January (17), February (83)
                  and March (248));
              --  Expanded sales into mobile diagnostic providers with multiple customers;
              --  Continued Visualize:Vascular roll out expanding to the Southeastern
                  United States;
              --  Reinforced clinical performance with case study showing that
                  Visualize:Vascular correctly identified patients with severe Stenosis
                  that Doppler ultrasound technology did not find. Visualize:Vascular
                  correlated to magnetic resonance angiography (MRA) and surgical
                  findings;
              --  Subsequent to the end of the quarter, Medipattern announced that it had
                  signed a binding letter agreement with MYTRAK(R) Health System Inc.
                  ("MYTRAK") to combine their technologies and launch a new personalized
                  mobile health business called MyTrak Personal Health Solutions, focusing
                  on monitoring physical activity for the management of Metabolic Syndrome
                  by leveraging MYTRAK's proven wearable mobile technology platform to
                  complement its core proprietary cardiovascular visualization and image
                  analysis business.
              
              
      
      
      

      “Key milestones were met in the vascular product line during the third
      quarter. Daily clinical use in the diagnostic imaging market of
      Visualize:Vascular is confirming that the product is medically
      beneficial, easy to use and cost effective in practice. We are
      extremely pleased with the growing acceptance of the product and the
      continued ramp up in installations and scanning volumes,” stated Jeff
      Collins, CEO of Medipattern. “Our increased exposure to the vascular
      market and cardiologists has created new opportunities for
      Medipattern, like the recently announced MyTrak Personal Health
      Solutions product, which addresses external patient monitoring
      requirements that are not being adequately addressed in the market.
      We expect that the new product we are developing utilizing MyTrak
      Health Solutions proprietary technology will be readily accepted and
      fill a significant void in the patient wellness space, as well as
      create a significant new revenue stream for Medipattern. The
      potential for the Company’s product offering in both the diagnostic
      imaging market and the patient wellness market is very strong and the
      Company is positioned well in both markets.”

      
      
              
              Financial Summary for Q3 Fiscal 2012:
              --  Revenue totaled $11,734 (Q3 2011 - $57,929) for the fiscal quarter ended
                  March 31, 2012, an overall decrease of 79.7%, while nine month fiscal
                  revenues declined to $25,715, a 77.3% drop from last years' nine month
                  total of $113,102. Subscription rental fees for both
                  Visualize:Vascular(TM) and B-CAD-FOR-LIFE(TM) accounted for all Q3 2012
                  quarterly revenue (Q3 2011 - $6,647) as the Company continued to focus
                  its core RD resources and marketing expertise on meeting its deadlines
                  for completion of final development and commercialization of its new
                  vascular software Visualize:Vascular(TM) which was rolled out on a
                  limited basis in June 2011. Consequently, in Q3 2012, the Company
                  generated no licensing revenue or professional fees (Q3 2011 - $23,105
                  in licensing fees and $28,177 in professional fees). For the nine month
                  period ended March 31, 2012 subscription rental fees of $25,715 also
                  accounted for all revenue (2011 - $36,334) while $48,591 of licensing
                  fees and $48,591 of ancillary professional fees were earned in the
                  similar nine month period of fiscal 2011.
              --  Non-interest operating expenses in Q3 2012 totaled $600,330 versus
                  $516,794 in Q3 2011, an overall increase of 16.1%. For the nine months
                  ended March 31, 2012 operating expenses totaled $1,870,797 compared to
                  $1,630,785, a 14.7% increase. Despite modest increases in RD expenses
                  associated with the final development of Visualize:Vascular(TM), and
                  higher professional fees incurred with securing the Company's patents
                  and conversion to IFRS, the Company remains committed to controlling all
                  discretionary spending until operating cash flow improves in response to
                  its ongoing commercialization of its award winning software products.
              --  Total interest expense (including accreted interest on Convertible Debt)
                  for Q3 2012 increased 154.9% to $186,970 (Q3 2011 - $73,351) as a result
                  of a late Q3 fiscal 2011 Convertible Debt financing with its associated
                  accredit interest, and the end of the Notes interest-free period at
                  December 31, 2011. For the nine months ended March 31, 2012 interest
                  expenses amounted to $428,608, compared to $185,778 for fiscal 2011, a
                  130.8% increase.
              --  In Q3 2012 the Company also recorded a fair value, non-cash gain on
                  embedded conversion options in its 2010 Convertible Notes of $42,705 (Q3
                  2011 - $2,524,126 loss) with a similar gain for the nine month period of
                  $1,400,499 in 2012 versus a loss of $2,443,700 in fiscal 2011. These
                  fiscal 2012 gains represent a reversal of losses recorded by the Company
                  in previous fiscal periods as a result of its conversion to IFRS and are
                  highly sensitive to the Company's share price.
              --  Resulting net loss for Q3 2012 was $742,953 ($0.01 per share basic and
                  diluted) versus a loss of $3,055,069 ($0.05 per share basic and diluted)
                  for Q3 2011. For the nine months ended March 31, 2012 the Company
                  reported a net loss of $870,656 ($0.02 per share basic and diluted)
                  versus a loss of $4,148,152 ($0.07 per share basic and diluted) for the
                  similar nine month period of fiscal 2011.
              --  As at March 31, 2012, cash and cash equivalents totaled $230,654 (June
                  30, 2011 - $201,703), current assets, including highly liquid short-term
                  investments of $750,752 (June 30, 2011 - $2,567,619), were $1,490,128
                  (June 30, 2011 - $3,313,658) and current liabilities were $401,467 (June
                  30, 2011 - $352,104). Working capital at March 31, 2012 totaled
                  $1,088,661 (June 30, 2011 - $2,961,554). At May 29, 2012, the Company
                  estimates working capital at $625,000.
              Results of Operations (note 1):
              THE MEDIPATTERN CORPORATION
              UNAUDITED STATEMENT OF OPERATIONS and COMPREHENSIVE INCOME (LOSS)
              FOR THE THREE and NINE MONTHS ENDED MARCH 31, 2012 AND 2011
              ---------------------------------------------------------------------------
                                   Three Months  Three Months   Nine Months   Nine Months
                                          Ended         Ended         Ended         Ended
                                       March 31,     March 31,     March 31,     March 31,
                                           2012          2011          2012          2011
                                   ------------------------------------------------------
                                     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
              Revenues
                Licensing fees     $          -  $     23,105  $          -  $     48,591
                Professional fees             -        28,177             -        28,177
                Subscription
                 rental fees             11,734         6,647        25,715        36,334
                                   ------------------------------------------------------
                                         11,734        57,929        25,715       113,102
                                   ------------------------------------------------------
              Expenses
                Research and
                 development            283,575       231,263       788,503       695,046
                Administration and
                 product support        205,367       179,381       745,074       606,664
                Sales and
                 marketing              102,035        97,633       310,280       303,525
                Interest on
                 convertible debt       112,440        47,565       212,325       131,842
                Accretion of
                 interest on
                 convertible debt        74,530        25,787       216,282        53,937
                Loss (gain) on
                 convertible debt
                 conversion option
                 (1)                    (42,705)    2,524,126    (1,400,499)    2,443,700
                Foreign exchange
                 loss                    12,981         1,684        15,479         8,957
                Investment income        (2,889)       (2,957)      (18,013)       (7,965)
                Depreciation of
                 property and
                 equipment                9,353         8,516        26,940        25,548
                                   ------------------------------------------------------
                                        754,687     3,112,997       896,371     4,261,255
                                   ------------------------------------------------------
              Net Loss and Total
               Comprehensive Loss  $   (742,953) $ (3,055,068) $   (870,656) $ (4,148,152)
                                   ------------------------------------------------------
              Loss Per Share -
               Basic and Diluted   $      (0.01) $      (0.05) $      (0.02) $      (0.07)
                                   ------------------------------------------------------
              Weighted Average
               Number of Common
               Shares Outstanding    57,404,579    57,181,233    57,404,579    57,181,233
                                   ------------------------------------------------------
              (1)  The non-cash gain on the convertible debt conversion option represents
                   the reversal of significant prior fiscal period losses booked in
                   conjunction with the Company's conversion to IFRS and as outlined in
                   further detail in note 5 to the accompanying condensed unaudited
                   interim financial statements.
              
              
      
      
      

      For further details concerning Medipattern’s results, please see the
      Company’s filings on SEDAR (
      www.sedar.com ).

      
      
              
              Upcoming Events
              Annual Meeting - MHA          June 6 - 7, 2012 Brewster, MA
              SVU/SVS Annual Conference     June 7 - 9, 2012 Baltimore, MD
              
              
      
      
      

      About the Medipattern Corporation:

      Medipattern(R) is a pioneer in the development of imaging software
      solutions that help medical practitioners to better understand
      lesions and critical anatomy. Medipattern uses its Cadenza(TM)
      technology to process images, finding the salient region of interest
      and presenting them in 2D and 3D formats that enhance the reader’s
      perception. For more information, please visit the Company’s website:

      www.medipattern.com .

      Medipattern(R) and B-CAD(R) are registered marks of The Medipattern
      Corporation. Visualize:Vascular(TM) is a trademark 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
      www.sedar.com ). 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.

      Neither the TSX Venture Exchange nor its Regulation Services Provider
      (as that term is defined in the policies of the TSX Venture Exchange)
      accepts responsibility for the adequacy or accuracy of this release.

      
      
              
              Contacts:
              The Medipattern Corporation
              Jeff Collins
              CEO
              (416) 744-0009 ext. 224
              jcollins@medipattern.com
       
      www.medipattern.com            
              Spinnaker Capital Markets Inc.
              Kevin O'Connor
              (416) 962-3300 ext. 226
              ko@spinnakercmi.com
              
              
              
      
      
      

      SOURCE: The Medipattern Corporation

      
      
              mailto:jcollins@medipattern.com
       
      https://www.medipattern.com            mailto:ko@spinnakercmi.com
              
      
      
      

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      /quotes/zigman/377611




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