BSD Medical Signs Exclusive Distribution Agreement with Classic Medical, Inc. - Completing Nationwide Sales Coverage for MicroThermX®

BSD Medical Corporation (NASDAQ: BSDM) (Company or BSD) (www.BSDMedical.com), a leading provider of medical systems that utilize heat therapy to treat cancer, announced today that the Company has signed an exclusive agreement with Classic Medical, Inc. (Classic Medical) for the sales and distribution of the MicroThermX^® Microwave Ablation (MicroThermX^®) line of products. Classic Medical is a leading seller of minimally invasive surgical products. It has a 20-year history of selling state-of-the-art surgical devices produced by some of the leading medical companies in the U.S. In addition, Classic Medical has successful long-term relationships with physicians, key opinion leaders, and hospitals throughout the Southeastern U.S. Classic Medical’s dedicated team of veteran sales personnel specialize in selling products targeted for the interventional oncology market. The agreement provides the rights to market the MicroThermX^® line of products in the states of North Carolina, South Carolina, Georgia, Florida, Alabama and Tennessee.

This completes BSD’s strategic initiative to capitalize on the large ablation market by establishing an exclusive, specialty distribution network that will provide nationwide sales coverage for the MicroThermX^® line of products. Distributors have been selected based on their sales record, their synergistic product mix, and their focus in the field of interventional oncology/radiology. BSD has also hired additional Regional Sales Management. The Company now has a complete sales and marketing team in place to manage the nationwide sales and distribution network, work hand-in-hand with the sales representatives, assist in the selling process, and provide ongoing training and clinical support. The sales and distribution network that is now in place will ensure that trained sales representatives are presenting the advantages of the MicroThermX^® to interventional oncologists throughout the U.S. This increased sales activity is expected to significantly increase clinical evaluations and start a growing sales trend for the MicroThermX^® line of products.

About the MicroThermX^® Microwave Ablation System

The MicroThermX^® Microwave Ablation System is a compact, mobile, state-of-the-art, proprietary system that includes a microwave generator, single-patient-use disposable antennas, and a thermistor-based temperature monitoring system. The innovative design of the MicroThermX^® is the first of its kind that allows delivery of higher power levels using a single generator. The MicroThermX^® utilizes innovative synchronous phased array technology that was developed and patented by BSD to provide larger and more uniform zones of ablation during a single procedure. The MicroThermX^® introduces into the Company’s product line an innovative, high-end disposable that is used in each ablation treatment, and will provide a significant ongoing revenue stream. The soft tissue ablation world market potential is estimated to exceed $2.3 billion. The U.S. Food and Drug Administration (FDA) has granted the Company a 510(k) clearance to market the MicroThermX^® for ablation of soft tissue. BSD has also received CE Marking for the MicroThermX^® System, which allows BSD to market the MicroThermX^® system in Europe. CE Marking is also recognized in many countries outside of the EU, providing BSD the ability to market the MicroThermX^® to a number of international markets.

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radiofrequency (RF) and microwave energy. BSD’s product lines include both hyperthermia and ablation treatment systems. BSD’s hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. BSD’s microwave ablation system has been developed as a stand-alone therapy to ablate and destroy soft tissue. The Company has developed extensive intellectual property, multiple products in the market and well established distribution in the United States, Europe and Asia. Certain of the Company’s products have received regulatory approvals in the United States, Europe and China. For further information visit BSD Medical's website at www.BSDMedical.com.

Statements contained in this press release that are not historical facts are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date.