BSD Medical Reports Clinical Study Demonstrates Threefold Increase in Tumor Destruction from the Addition of Hyperthermia for

  BSD Medical Reports Clinical Study Demonstrates Threefold Increase in Tumor
  Destruction from the Addition of Hyperthermia for Advanced Rectal Cancer
  Patients

Business Wire

SALT LAKE CITY -- October 23, 2012

BSD Medical Corporation (NASDAQ:BSDM) (Company or BSD) (www.BSDMedical.com), a
leading provider of medical systems utilizing heat therapy to treat cancer,
announced today that published study results demonstrate improved rates of
complete pathological tumor response (no evidence of viable tumor in primary
tumor and lymph nodes) in advanced rectal cancer patients from the addition of
hyperthermia, delivered using the BSD-2000 Hyperthermia System. The
researchers also reported that hyperthermia may provide enough reduction in
tumor size (downstaging) to allow an increased rate of sphincter preservation
surgery (which can allow patients to maintain normal rectal function) in a
subgroup of patients with rectal tumors located lower in the gastrointestinal
tract. Hyperthermia was added to standard preoperative radiochemotherapy
(combined radiotherapy and chemotherapy) for 61 patients, and results were
retrospectively compared to 45 patients with locally advanced rectal cancer
who were treated with standard preoperative radiochemotherapy alone.

The rate of complete pathological tumor response (pCR) was significantly
higher in the patients receiving at least four hyperthermia treatments
(22.5%), as compared to a rate of only 6.7% for patients receiving
radiochemotherapy alone, and a rate of 4.7% for patients treated with
radiochemotherapy and only one to three hyperthermia treatments (p=0.043). The
researchers also noted that the pCR rate of 22.5% achieved from the addition
of hyperthermia is higher than the pCR rate reported in most published
presurgical radiochemotherapy studies, including studies utilizing multiple
chemotherapy agents. Hyperthermia significantly increased the number of
patients with tumors located within 8 cm of the anal verge who were able to
have sphincter-sparing surgery: 57% in the hyperthermia group compared to only
35% in the group that did not receive hyperthermia (p=0.077).
Sphincter-sparing surgery is expected to provide a dramatic improvement in
quality of life for rectal cancer patients.

The study, “Pathological Complete Response and Sphincter-Sparing Surgery after
Neoadjuvant Radiochemotherapy with Regional Hyperthermia for Locally Advanced
Rectal Cancer Compared with Radiochemotherapy Alone,” was published in The
International Journal of Hyperthermia by C. Schroeder, et al., from the
Department of Radiation Oncology of the University of Tübingen (Tübingen), in
Germany. Tübingen is one of Europe’s oldest and most prestigious universities
and an international leader in medical research.

About the BSD-2000 Hyperthermia System

The BSD-2000 – developed and patented exclusively by BSD – delivers localized
therapeutic heating (hyperthermia) by applying radiofrequency (RF) energy. The
BSD-2000 creates a central focusing of energy that can be electronically
focused to target the shape, size and location of the tumor, thus providing
dynamic control of the heating delivered to the tumor region. The BSD-2000 has
Humanitarian Device Exemption (HDE) marketing approval from the U.S. Food and
Drug Administration (FDA) for use in conjunction with radiation therapy for
the treatment of cervical cancer patients who are ineligible for chemotherapy.
The BSD-2000 also has CE (Conformité Européenne) Marking approval for the
commercial sale in Europe. CE Marking approval is also recognized in many
countries outside of the EU.

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.

Contact:

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