Signs Research & Development and Manufacturing Agreement for Its Patented Technology of Heat-Activated and Tumor Targeted Immunotherapy and Gene Therapy

Medifocus Inc. Signs Research & Development and Manufacturing Agreement for Its Patented Technology of Heat-Activated and Tumor Targeted Immunotherapy and Gene Therapy

COLUMBIA, Md. and Toronto, ON- January 13, 2016 Medifocus, Inc. (OTCQX: MDFZF and TSXV: MFS) (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, and Heat Activated Tumor Targeted Immunotherapy and Gene Therapy, today announced that the Company has entered into an agreement (the “Agreement”) for the commercial development, and manufacturing of Medifocus’ patented heat-activated and tumor targeted immuno-therapeutics with the Yuanxing Bio-Pharm Science & Technology Co. Ltd. (Yuanxing) in Shenzhen, China.

Under the terms and conditions of the Agreement, Yuanxing will be responsible for development and manufacturing of commercial batches of the seed virus for Medifocus’ heat activated immuno-therapeutics (CKA), which the Company licensed from Duke University in October 2015, in sufficient quantities for pre-clinical evaluations in large animals as well as for the phase I clinical evaluation in patients. In addition, Yuanxing will advise and assist Medifocus in the regulatory process towards gaining CFDA approval for CKA and other heat activated genetic therapeutics in China.

Dr. Augustine Cheung, Chief Executive Officer of Medifocus, commented, “Yuanxing possesses one of the most technologically advanced platforms in terms of viral vector gene therapy products. Their significant manufacturing capacity, and expertise gained from working with many other biotechnology and pharmaceutical firms worldwide make Yuanxing the ideal partner to collaborate with Medifocus to further develop the Company’s innovative heat activated therapeutics platform pipeline as we move closer towards participating in the exciting and rapidly growing molecular/genetic/immune therapeutics marketplace.”

About Shenzhen Yuanxing Bio-Pharm Science & Technology Co. Ltd.:

Founded in 2000 as Tsinghua YuanXing (THYX), Shenzhen Yuanxing Bio-Pharm Science & Technology Co. Ltd focuses on the development, production and outsourcing services of virus vector (including Adenovirus, Lentivirus, Poxviruses, Herpesvirus, Adeno-associated Virus, etc.) gene therapy drug and gene vaccines.

About Medifocus, Inc.:

Medifocus, Inc. (TSX VENTURE: MFS) (OTCQX: MDFZF) is biotechnology company with a portfolio of medical technologies that utilize heat activation to treat conditions ranging from prostate diseases to breast cancer and extends to gene therapy. Heat is known to accelerate numerous chemical and biochemical reactions, and Medifocus’ portfolio relies on this fact to improve clinical outcome. Its Prolieve® Thermodilatation System offers relief from Benign Prostatic Hyperplasia (BPH) to millions of men with a simple, 45-minute, in-office treatment. Its APA-1000™ Breast Cancer Treatment System is currently in phase 3 clinical trials, and it is designed to treat localized and locally advanced breast cancers through the application of heat alone or in combination with chemotherapy. Medifocus has formally entered into an exclusive license agreement with Duke University to the Patent Rights of a “method for selective expression of therapeutic genes in cancer cells by hyperthermia” to develop Heat-Activated and Tumor Targeted Immunotherapy and Gene Therapy. This is a novel approach to control expression of anticancer genes intratumorally with focused heat and is a unique method to achieve precise delivery of gene and molecular therapies on demand. Medifocus will work on further development of a pipeline of other focused heat devices and viral delivery vectors to accommodate other molecular and genetic therapeutics. The Company believes this could result in an entire stable of gene-specific, heat-activated treatments for a wide array of medical conditions.

Please visit, and // for more details.

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: John Mon, COO, Medifocus, Inc. Tel: 410-290-5734

Investor Relations: Michael Porter, President, Porter, LeVay and Rose, Tel: 212-564-4700,