Medifocus, Inc. Expands its Reach into the Israeli Market with Amos Gazit Ltd

Medifocus, Inc. Expands its Reach into the Israeli Market with Amos Gazit Ltd for Its Prolieve® Thermodilatation for BPH Therapy and Announces Significant Debt Conversion into Shares

COLUMBIA, Md.- January 9, 2018 Medifocus, Inc. (OTCQX:MDFZF and TSXV:MFS.V) (“Medifocus” or the “Company”), a biotechnology company with a portfolio of medical products encompassing thermotherapy systems for the treatment of Benign Prostatic Hyperplasia (BPH) and Breast Cancer, is pleased to announce that it has entered into an exclusive distribution agreement (the “Agreement”) with Amos Gazit, Ltd (“Amos Gazit”) to market and distribute the Company’s proven Prolieve® Thermodilatation System for the treatment of BPH in the territory of Israel.

Founded in 1958 and based in Petach-Tikva, Israel, Amos Gazit Ltd is a leading Israeli company specialized in importing, marketing, exporting and services for a wide variety of products in the field of safety and medical equipment for the institutional, business and private sectors. Mr. Oded Gazit, Managing Director of Amos Gazit Ltd, stated, “Partnering with Medifocus is an important step for us in becoming #1 distributor in Israel in the field of Urology. We are excited to introduce this innovative technology to the Israeli market.”

Prolieve® Thermodilatation is a proven innovation and is the only Third Generation TUMT uniquely combining microwave thermotherapy with a dilating balloon that compresses the prostatic urethra during treatment. Such tissue compression allows effective thermotherapy to be delivered at a lower microwave energy which translates into better patient comfort and safety. Thermodilatation also assures a patent post-treatment prostatic urethra that contributes to a much lower post-treatment catheterization rate compared to other minimally invasive treatments for BPH. Prolieve® is a proven technology with over 100,000 cases performed in the U.S. alone. The Company’s 10-year FDA post market study of 220 men treated with Prolieve® demonstrated long-term safety, efficacy and durability with improved lower urinary tract symptoms, urinary flow rate, quality of life, and little or no sexual side effects compared to the untreated age-matched population at 5-year follow-ups.

Dr. William Jow, President and CEO of Medifocus, commented, “In partnering with Amos Gazit, we are very excited to launch Prolieve® Thermodilatation in another important international market. Following our recent success in launching Prolieve® in Asia, and in assisting them with their initial cases, the Isreali market represents an important milestone in establishing the distribution relations in Israel and other parts of the world.” Dr. Stuart Katz, Vice President of Operations, added, “We look forward to working with Amos Gazit Ltd to introduce Prolieve® therapy to BHP patients in Israel, and to ensure its success.”

In addition to the new international market expansion, Medifocus also today announces that it has agreed, subject to regulatory approval, to issue an aggregate of 124,935,874 common shares at a deemed price of CAD0.05 per common share to settle an aggregate of CAD6,036,794 of the 8% Convertible Notes and accrued interest, as well as CAD210,000 representing unpaid fees owed to its directors and an officer. All of the common shares issued in connection with the shares for debt transaction will subject to a four-month and one-day hold period from the date of issuance.

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 was licensed from Massachusetts Institute of Technology and developed by the Medifocus team. The Targeted Focal Thermotherapy has been demonstrated in Phase 2 clinical trials to offer significantly better tumor shrinkage in patients treated with the combined Chemothermal therapy compared those treated with Chemotherapy alone. APA 1000 was also shown to be effective in reducing margin positivity among patients treated with such thermotherapy prior to lumpectomy.

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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