Medifocus Inc. Announces Revenues for Year Ended March, 2013 and Adjustment of Prior Period Accounting Error

Medifocus, Inc. (TSX VENTURE:MFS), (OTCQX:MDFZF) (Medifocus or the Company) has
filed its financial statements for the year ended March 31, 2013. Included in
the financial statements is a correction of a prior period error that reflects
the expensing of $3,904,313 of product development costs relating to the APA
technology. The error resulted in a reduction of the total assets as at March
31, 2012 from $4,340,956 to $436,643, a reduction of 90%. These costs would have
represented 34% of the total assets on the statement of financial position as at
March 31, 2013. The Company had previously capitalized the research and
development expenses of the APA 1000 Breast Cancer System following approval by
the U.S. FDA in 1997 of the base machine of the APA system. The Company also
received approval from Health Canada in 2009 and FDA in 2010 to proceed with the
Phase III clinical trial to determine the efficacy of the APA 1000 System in
reducing breast cancer tumor size in conjunction with chemotherapy. However, the
approval to initiate the Phase III trials does not guarantee the receipt of the
final approval for commercial sales of the APA 1000 system. The prior FDA
approval of the base machine and approvals to proceed with the Phase III
clinical trials does not provide sufficient basis to meet the criteria of
technical feasibility for the purposes of capitalizing the research and
development costs of the APA system. This has been accounted for as a prior
period accounting error in the consolidated financial statements and has been
reflected retrospectively in the financial statements. The prior period
adjustment has reduced our intangible assets - product development costs by
$3,904,313, and increased our opening deficit as at March 31, 2012 to
$9,115,601. The accumulated deficit for the Company as at March 31, 2013 is
$14,944,163.


First Year of Revenue 

Medifocus is pleased to announce that it continues to increase sales from its
Prolieve(R) Thermodilatation System, reaching $862,538 from January to March,
2013, representing an increase of 37% from the prior quarter. Since acquiring
the Prolieve(R) business in July 2012 the Company has achieved total sales of
$1,805,969. Due to a rapidly growing sales force and enhanced infrastructure
that has led to stronger gross margins, the Company expects to deliver continued
top and bottom-line growth 


The Prolieve(R) Thermodilatation System is designed to provide a relatively
painless and effective alternative to drug therapy and certain types of surgical
procedures used to treat the symptoms of Benign Prostatic Hyperplasia (BPH). Dr.
Augustine Y. Cheung, President and CEO of Medifocus, commented, "We are
extremely pleased with the progress we are making with the rollout of the
Prolieve(R) system. In only three quarters, we have exceeded sales of $1.8
million and have strengthened our operational infrastructure so that we can
further improve upon these strong results." 


Dr. Cheung continued, "We expect demand for the Prolieve(R) treatment to
continue as it is the only microwave therapy to be randomized against drug
therapy in FDA clinical trials and to show superior results than medication in
those trials. The global drug market potential for BPH is estimated at
approximately $8 billion annually. Medifocus believes that Prolieve(R) is also
more effective and creates far less side effects than the current drug regimens.
We believe Prolieve(R) will achieve significant revenue rates in the next
several years if we could capture a very modest share of that market"


About Medifocus, Inc. 

Medifocus owns two fully developed technology platforms with comprehensive US
and international patent protection: (1) The Endo-thermotherapy Platform-a
catheter-basis focused heat technology platform that utilizes natural body
openings to deliver precise microwave thermotherapy to the diseased sites. The
U.S. FDA approved Prolieve Thermodilatation System for the treatment of Benign
Prostatic Hyperplasia ("BPH") was developed based on the Endo-thermotherapy and
is currently generating revenue, and (2) The Adaptive Phased Array (APA)
Microwave Focusing Platform-invented by MIT, licensed to Medifocus, directs
precisely focused microwave energy at tumor center to induce shrinkage or
eradication of tumors without undue harm to surrounding tissue. The Company's
APA 1000 Breast Cancer Treatment System, developed from the APA technology
platform has received approval from the U.S. FDA and Health Canada to conduct
the pivotal Phase III clinical trials. The Company believes that these two
technology platforms can provide the design basis for the development of
multiple cancer treatment systems for surface, subsurface and deep seated
localized and regional cancers. Please visit www.medifocusinc.com,
www.prolieve.com and
http://www.facebook.com/pages/Medifocus-Inc-Company-Page/546315028715627 for
more details. 


Forward-Looking Statements 

This management's discussion and analysis may contain statements that are
"Forward-looking Statements". These include statements about the Company's
expectations, beliefs, plans, objectives and assumptions about future events or
performance. These statements are often, but not always, made through the use of
words or phrases such as "will likely result", "are expected to", "will
continue". "anticipate", "believes", "estimate", "intend", "plan", "would", and
"outlook" or statements to the effect that actions, events or results "will",
"may", "should" or "would" be taken, occur or be achieved. Forward-looking
statements are not historical facts, and are subject to a number of risks and
uncertainties beyond the Company's control. Accordingly, the Company's actual
results could differ materially from those suggested by these forward-looking
statements for various reasons discussed throughout this analysis.
Forward-looking statements are made on the basis of the beliefs, opinions, and
estimates of the Company's management on the date the statements are made and,
other than in compliance with applicable securities laws, the Company does not
undertake any obligation to update forward-looking statements if the
circumstances or management's beliefs, opinions or estimates should change.
Readers should not place undue reliance on forward-looking statements.


Safe Harbor Statement 

This press release contains statements, which may constitute "forward-looking
statements" within the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act
of 1995. Those statements include statements regarding the intent, belief or
current expectations of CCTI, Inc., and members of their management as well as
the assumptions on which such statements are based. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking statements.
Important factors currently known to management that could cause actual results
to differ materially from those in forward-statements include fluctuation of
operating results, the ability to compete successfully and the ability to
complete before-mentioned transactions. The company undertakes no obligation to
update or revise forward-looking statements to reflect changed assumptions, the
statements to reflect changed assumptions, the occurrence of unanticipated
events or changes to future operating results. 


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
Medifocus, Inc.
John Mon
COO
410-290-5734
JohnMon@medifocusinc.com
www.medifocusinc.com


Investor Relations Contact:
Robert Giordano
Consulting for Strategic Growth 1
917-327-3938
rgiordanonyc@gmail.com
Medifocus (TSXV:MFS)
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