BSD Medical Hires Leading PR Firm for Corporate and Product Communications.

SALT LAKE CITY -- Schwartz Communications to Build Patient and Physician Awareness about Hyperthermia in Cancer Therapy and Help Launch Important New Products

BSD Medical Corp. (OTC:BSDM) (BULLETIN BOARD: BSDM) today announced that it has engaged Schwartz Communications, Inc. (Waltham, MA and San Francisco, CA) (www.schwartz-pr.com), the premier public relations agency for technology and healthcare, as its agency-of-record. Schwartz has helped build distinctive prominence for significant medical advances including the MammoSite Radiation Therapy System for breast cancer (Cytyc Surgical Products, formerly Proxima Therapeutics, Inc), the ThinPrep(R) System (Cytyc Corporation), the HeartStart OnSite Defibrillator (Philips), the Vagus Nerve Stimulation System for refractory epilepsy (Cyberonics) and many other achievements and innovators in the medical device, biopharmaceutical and high technology sectors.

BSD Medical is the world's leading developer and marketer of hyperthermia systems that use therapeutic dosages of site-specific heat provided by microwave and radio frequency energy to kill cancer cells and boost the effectiveness of radiation treatment and chemotherapy. These increases in heat range from 8 to 30 degrees F higher than normal body temperature, and by increasing the blood circulation in tumors they improve sensitivity to radiotherapy. Randomized clinical trials have shown that combining hyperthermia with other therapies improved disease free survival and local tumor control without an increase in toxicity.

"We selected Schwartz Communications because of its unparalleled track record of success in building awareness of medical technology companies and increasing both patient and physician demand for their products," said Hyrum A. Mead, President and CEO of BSD Medical Systems. "We have not engaged a public relations agency in our recent company history, and feel that this is a timely, strategic move linked closely with our commercialization plan for new products," Mead added.

"Schwartz is thrilled to work with BSD Medical, a company that is addressing unmet medical needs in cancer treatment with innovation and vision," said Jim Weinrebe, senior vice president, Schwartz Communications. "BSD Medical has an important story to tell, and we are pleased to be able to help them tell it."

BSD's FDA-approved BSD-500 applies targeted, invasive treatment for hard-to-reach tumors and non-invasive treatment of tumors located within a few centimeters of the body surface, including melanoma, recurrent prostate and breast cancer. It is indicated for use alone or in combination with radiation therapy in the palliative management of certain solid surface and subsurface malignant tumors that are progressive or recurrent despite conventional therapy.

The BSD-2000 System series targets difficult-to-treat cancers located deep in the body, such as bladder, uterine, cervix, colon, rectal, advanced prostate, soft tissue sarcoma and lung cancer. It employs a novel configuration of antennae that allow physicians to use electronic/computer-aided 3D targeting to focus doses of RF energy directly to the tumor site. Recipient of the 2005 Cancer Therapy Solutions Technology Award by Frost & Sullivan, the BSD-2000 is commercially available in Europe and Asia and in research settings in the United States under an Investigational Device Exemption (IDE). Phase III clinical trials are complete, and BSD Medical intends to apply for FDA pre-marketing approval (PMA) this year.

According to Hyrum A. Mead, "For patients with advanced cancer, hyperthermia has shown that it can improve the quality of life and the effectiveness of conventional therapy at a stage when few if any remaining therapeutic options exist. The campaign we will conduct with assistance from Schwartz can play a pivotal role in informing patients and their families about hyperthermia therapy and the growing number of cancer centers that are making it available with the BSD-500 System. With the BSD-2000, BSD Medical is continuing to broaden the application of hyperthermia in cancer therapy, and should we secure U.S. regulatory approval, educating physicians about the benefits and ease of operation and implementation of this system will accelerate its use in mainstream clinical practice. Schwartz has repeatedly shown its ability to build awareness of novel medical technologies, and we are excited to work with them."

BSD Medical Corporation is a leading developer of systems that employ focused microwave/radio frequency energy to treat diseases and other medical conditions, including cancer, by creating precisely elevated temperatures within the diseased site, as required by a number of medical therapies. For more information about BSD Medical Corp., its products and therapies, visit http://www.bsdmc.com/.

Statements contained in this press release that are not historical facts are forward looking statements, as that item is defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements, including statements that project future FDA pre-market approval of the BSD-2000, are subject to risks and uncertainties, some of which are detailed in part in the Company's filings with the Securities and Exchange Commission. All decisions regarding the pre-marketing approval of the BSD-2000 will be made by the FDA, and the Company can give no assurances as to whether or when the BSD-2000 will receive pre-marketing approval.