Medipattern Reports First Revenues.

TORONTO -- Attention: Business/Financial Editors:

Announces Q2 results for quarter ended December 31, 2005

The Medipattern Corporation (TSX VENTURE:MKI), an award-winning developer of computer-aided detection (CAD) software applications for medical imaging, today announced business highlights and financial results for the second quarter ended December 31st, 2005.

Highlights of the Quarter:

- Posted first revenue and began to recognize deferred revenue;

- Added to global sales reach with Kodak Healthcare agreement (through Cedara Software) for B-CAD;

- Successfully crossed the modality barrier with the launch of B-CAD MRI(TM) at the Radiology Society of North America (RSNA) conference in December 2005, adding both kinetic and morphological analysis of breast MRI to breast ultrasound capabilities;

- Introduced B-CAD(TM) 2.0 and 3.0 at RSNA, to enthusiastic response;

- Established an agreement with Orison Corporation to integrate and customize B-CAD into Orison's whole breast imaging system, including ongoing professional services fees. The combined system represents an exceptional opportunity in diagnostic imaging in breast cancer.

- Two papers authored by Medipattern luminaries Dr. A. Thomas Stavros and Cindy Rapp were accepted for presentation at the American Institute of Ultrasound in Medicine (AIUM), continuing to build clinical validation and acceptance of B-CAD(TM);

- Achieved full Quality Assurance System Approval Certificate, allowing for CE Marking (primarily for the European market);

- Received Canadian Medical Devices Conformity Assessment System registration (CMDCAS), leading to the issuance of a Canadian Medical Device License by Health Canada;

- Successfully registered Medipattern's Quality Management System to ISO 13485:2003 standard; and

- Named to the TSX Venture 50.

In the second quarter ended December 31, 2005, Medipattern continued to focus on extending the reach of its CADENZA(TM) suite of software, including B-CAD for ultrasound and B-CAD MRI for breast imaging and analysis. Medipattern made significant strides in both marketing and technology development while holding costs slightly below budget. Most importantly, Medipattern posted its first revenues, with the licensing of one of its technologies to Orison Corporation of Johnston City, Tennessee, for their whole breast imaging platform.

Revenue from operations for the quarter ended December 31, 2005 was $313,990 plus $17,591 in interest for a total of $331,581. For the six-month period, revenue from operations was $313,990 plus $38,581 in interest, for a total of $352,571. Revenue in the first quarter ended September 30, 2005 was entirely related to bank interest earned.

Net loss for the quarter ended December 31, 2005 was $328,467, an increase of $61,190 from the same quarter in the prior year. Net loss for the six months ended December 31, 2005 was $903,634, an increase from $340,073 from the same period in the previous year. It should be noted that during the six months ended December 31, 2004 operations were held to a minimum pending appropriate financing. As a result, the period-over-period comparison has little relevance.

Expenses in the quarter ended December 31, 2005 rose to $660,048 from $267,878 in the corresponding quarter of the previous year. For the six-months ended December 31, 2005, expenses reached $1,256,205 compared to $340,911 for the same period in the previous year. Again, the comparison to the prior year has little relevance. In both the quarter and the six-month period, the increase in expenses related primarily to two categories: a substantial increase in administration and product support expenses, and increased research and development expenses of $607,652 (compared to $171,162 in the prior year) resulting from higher staffing levels and increased consulting and contract programming expenses. Overall, the increased expenses reflect the higher level of activity required to support the Company and its growing product line.

The Company has maintained its costs slightly below the budgeted $225,000 per month. With the launch of B-CAD MRI, which is Medipattern's second clinical application, these costs may rise, but only in the context of identified opportunities. With $2,818,646 in cash and cash equivalents at December 31, 2005, Medipattern has sufficient resources on hand to see it through December 2006 under current conditions.

Recent Events:

In January, Medipattern was the recipient of the Frost & Sullivan 2006 Medical Imaging Technology Innovation of the Year Award, a much-coveted award presented by Frost & Sullivan's industry analysts to the company demonstrating technology superiority, the ability to develop and introduce new technology within a comprehensive well-designed suite of products, and the potential to contribute significant product performance to the industry. This award focused on B-CAD MRI and its ability to provide radiologists with both kinetic and morphological data analysis, as well as its multi-modality capabilities in navigating between ultrasound and MRI data. Subsequent to this award, the Company was posted to the Frost & Sullivan Best Practices Hall of Fame.

Outlook:

"With B-CAD MRI, Medipattern will demonstrate its ability to cross the modality barrier," said Jeff Collins, President and CEO of Medipattern. "This illustrates the strength and versatility of our CADENZA software platform, and will validate the approach Medipattern has taken. In the coming quarters, we will continue to build strong clinical validation and expand our marketing efforts to create increased demand for our CADENZA suite of products."

For further details concerning Medipattern's results, please see the company's filings on SEDAR (www.sedar.com).

Upcoming Events:

Medipattern will be attending the European Congress of Radiology (ECR) in Vienna (March 3 -to-7, 2006), and the American Institute of Ultrasound in Medicine (AIUM) in Washington (March 23-to-25, 2006).

The Medipattern Corporation develops computer-aided detection (CAD) software applications for medical imaging. These applications enhance workflow while improving interpretive and diagnostic confidence. The Company's initial clinical application is B-CAD(TM) for breast ultrasound. B-CAD uses pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in ultrasound images of the breast. For additional information, please visit the Company's website at: www.medipattern.com.

B-CAD(TM) and B-CAD MRI(TM) are trademarks of The Medipattern Corporation.

Medipattern(R) is a registered mark of The Medipattern Corporation.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's financial performance, operations or business environment. Such statements are based on Medipattern's operations, estimates, forecasts, and projections, but are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the company's corporate filings, (posted at www.sedar.com). Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although any forward-looking statements are based upon what management believes to be reasonable assumptions, Medipattern cannot be certain that actual results will be consistent with these forward-looking statements, and the company disclaims any intention or obligation to update or revise any forward-looking statements for any reason.

The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this release and has neither approved nor disapp roved of the contents of this release.

The Medipattern Corporation (TSX VENTURE:MKI)