Announces Significant Improvement in Operating Results for the Fiscal Year Ended March 31, 2017

Medifocus, Inc. Announces Significant Improvement in Operating Results for the Fiscal Year Ended March 31, 2017 with Successful Expansion of Prolieve® Global Market & Launching of Prolieve® Prostatitis Study

COLUMBIA, Md.- August 28, 2017 Medifocus, Inc. (OTCQX:MDFZF and TSXV:MFS.V) (“Medifocus” or the “Company”), reported significant improvement in its financial results for the fiscal year ending March 31, 2017.

The Company achieved a 16% improvement in gross margin and an 84% decrease in operating loss during the last fiscal year. The operating loss dramatically improved from $3,216,805 for the year ended March 31, 2016 to $511,393 for the year ended March 31, 2017.
For the nine months ended December 31, 2016, sales were maintained at $3,170,299, a decrease of 7% from the $3,398,125 in the same period in 2015. Operating losses were reduced significantly under the new program, from $2,676,912 to $239,129, a 91% improvement compared to the same period in 2015.

William Jow MD, President and Chief Executive Officer of Medifocus, commented, “Now with the more efficient operations in place, we can focus on driving sales of Prolieve® through close partnerships with our independent mobile providers and distributors, both domestically and internationally.” He added, “We have achieved an important milestone in expanding the Prolieve® market beyond the U.S. for the first time in Medifocus’ history. The first case of Prolieve® outside of the U.S. was recently performed by a local urologist at the Hong Kong Prostate and Urology Center.” Dr. Jow noted that similar collaborative efforts with business partners/distributors in other countries including Canada, China, Israel and South Korea are currently under way, and will likely increase Medifocus’ revenue through the sales of Prolieve® consoles and single-use Prolieve® treatment kits worldwide.

Dr. William Jow also presented findings from the 10-year Post Market Study of Prolieve® Thermodilatation™ Therapy with 5-year follow-up at the 15th Urological Association of Asia (UAA) Congress held at the Hong Kong Convention and Exhibition Center on August 4, 2017. Dr. Jow gave a summary of the Natural History of BPH progression and its associated complications, then described how Prolieve® fitted the ideal profile of the Minimally Invasive Technology that could change such history based on proven long-term safety, efficacy and durability data. His revolutionary concept of Preventing BPH Progression with minimal or no sexual side effects by using Prolieve® in an aging population will have far reaching implications in the emerging Global Men’s Health Market.

“While our patents have entitled us to treat other prostate conditions such as prostate cancer and prostatitis, Prolieve® has only been approved by the FDA for treating BPH to date.” Dr. Jow announced, “In order to expand the clinical indications of Prolieve®, we have recently secured funding and support to launch a multicenter, prospective study to evaluate the clinical benefits of Prolieve® on prostatitis patients with voiding symptoms. As a urologist myself, I see a great potential for Prolieve® to emerge as a vital minimally invasive therapy for BPH and Men’s Health around the world.” He continued, “The Prolieve® Prostatitis Study will be designed and overseen by a world renowned urology expert in the field of prostatitis with global collaborative efforts from major academic institutions and experienced Prolieve® users.”

About Medifocus, Inc.:

Medifocus, Inc. (TSXV-MFS, OTC-MDFZF) is a Biotechnology Company with a portfolio of medical technologies that utilize patented Focal Thermal Technology to treat conditions ranging from Prostate Diseases to Breast Cancer. Its Prolieve® Thermodilatation™ System offers symptomatic relief to men with Benign Prostatic Hyperplasia (BPH) through a simple, 45-minute, in-office treatment. Prolieve® is both FDA and Medicare approved for treating symptomatic BPH with over 100,000 cases performed in the U.S. alone, and with proven long-term safety, efficacy and durability. Its APA 1000 Breast Cancer Treatment System developed by Massachusetts Institute of Technology has been shown in Phase 2 clinical trials to offer significant additional shrinkage of the sizes of breast cancer in combined ChemoThermal therapy compared with Chemotherapy alone, and was shown to be effective in reducing margin positivity when patients were treated with APA 1000 prior to lumpectomy. Furthermore, its Heat Activated Gene Therapy exclusively licensed from Duke University aims at utilizing Medifocus’ Focal Thermal Technology to enhance selective expression of therapeutic genes injected intratumorally to optimize cancer cell killing while minimizing systemic side effects.

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Forward-Looking Statements

This news release contains “forward-looking statements” and “forward-looking information”, which may not be based on historical facts. Forward-looking statements and forward-looking information, include, but are not limited to, information and statements with respect to the benefit to Medifocus’ future growth resulting from the acquisition of additional intellectual property rights, additional treatment possibilities and the expectation that sales from Prolieve® may accelerate as a consequence. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Such forward-looking statements and forward-looking information involve known and unknown risks, uncertainties and other factors that may cause the actual results events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements or forward-looking information. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements and forward-looking information. Except as required by applicable securities laws, the Company disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results, events or developments.

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.

Company Relations: Medifocus, Inc. Tel: 410-290-5734