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 continues an aggressive rollout of its successful MicroThermX® Microwave Ablation System (MicroThermX®) equipment rental program throughout the U.S. This rental program allows hospitals to purchase disposable SynchroWave antennas and pay a fee-per-use rental for the treatment of patients using the MicroThermX® and will generate a revenue stream from sales of disposable antennas combined with highly profitable equipment rental fees. As part of the expansion program, the Company has hired new direct sales representatives in key major metropolitan areas who will provide "personal service" to new users of the microwave ablation technique. These new hires are experienced interventional sales representatives with seasoned contacts in the field of interventional oncology.

To increase geographical coverage for the rental program, BSD is collaborating with one of its MicroThermX® distributors, Appleton Medical Services, Inc., to support its efforts selling and servicing hospitals using the rental program approach. Appleton recently purchased a MicroThermX® and had immediate success with the initial launch of the rental program, securing business with one of the largest medical centers in the state of Nebraska. Appleton has a healthy MicroThermX® hospital evaluation pipeline. BSD expects the rental program to dramatically increase the hospital utilization of MicroThermX® in the coming months.

Appleton has a 32-year history of selling specialty surgical devices produced by some of the leading medical companies in the U.S. and has successful long-term relationships with these companies. Appleton has a dedicated team of veteran sales personnel who specialize in selling a select group of surgical products targeted for the interventional radiology market. Appleton has rights to market the MicroThermX® line of products in the states of Missouri, Louisiana, Oklahoma, Mississippi, Arkansas, Kansas, Iowa, Nebraska and Texas.

"The Salt Lake City area was used to test market this program, which was designed to accelerate revenues from the MicroThermX® line of products," said Harold Wolcott, BSD President and CEO. "The program resulted in increased purchases of disposable SynchroWave antennas and increased revenue from equipment rental fees. We are confident it will produce the same successful results throughout the U.S."

About the MicroThermX® Microwave Ablation System

The MicroThermX® 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 innovative, high-end disposables (SynchroWave antennas) that are 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® 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, which is 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 employ precision-guided microwave energy to ablate (destroy) soft tissue. The Company has developed extensive intellectual property, multiple products in the market and established distribution in the United States, Europe and Asia. Certain of the Company's products have received regulatory approvals and clearances 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.

BSD Medical Corporation
Dennis Gauger, 801-972-5555
investor@bsdmc.com
fax: 801-972-5930