BSD in final process of establishing international distribution networks for new microwave ablation product line

Maximizing production capacity, completing placement of systems in multiple hospitals, and witnessing early clinical successes with the MicroThermX Microwave Ablation (MicroThermX) line of products have paved the way for BSD Medical Corporation (Nasdaq: BSDM) to take its sales and distribution strategy to the next level. BSD is in the final process of establishing both domestic and international distribution networks dedicated to selling its exciting new microwave ablation product line. BSD has elected to pursue the strategy of utilizing a network of specialty distribution firms focused on selling products in the field of interventional radiology, the target market for the Company's ablation product line. The Company has identified seven regionally specific US firms that will provide as many as 60 sales representatives to promote, sell and service the MicroThermX product line throughout the United States. Early training of some of these specialty distributors is currently under way. BSD anticipates finalizing geographically exclusive distribution agreements with all of the identified firms in the coming weeks. Full sales coverage of the United States should be in place within the first quarter of calendar year 2011.

Building on its success in exhibiting MicroThermX during the October Cardiovascular and Interventional Radiological Society of Europe (CIRSE) meeting held in Valencia, Spain, BSD made great strides toward its effort to establish international interventional radiology distribution firms on a country-by-country basis. Company management met with over 40 international distribution firms during the CIRSE meeting. As a result of these meetings and the high level of interest expressed by all of the international distributors, BSD started contract negotiations with select European based firms and expects to begin international shipments of MicroThermX Microwave Ablation Systems and supplies of SynchroWave disposable microwave antennas in January 2011. A return trip to Europe is scheduled for this coming January to visit the headquarters of these specialty distribution firms to finalize contract negotiations and begin training of international distributor sales representatives.

To support the global distribution network for the MicroThermX product line, the Company is increasing its marketing and sales staff. Management has recently secured the employment of a senior medical device marketing person and is currently interviewing multiple candidates for domestic and international sales management. Increasing MicroThermX marketing and sales resources to support the existing BSD management team is key to making the strategic decision to utilize specialty distribution firms a success. Additional marketing and sales resources will provide effective hands-on field training and management of the distribution network and the large number of sales personnel that this new distribution network will bring to BSD Medical.