[January 31, 2013]

BSD Medical Hyperthermia System Purchased by Major East Coast U.S. Academic Medical Center

BSD Medical Corporation (NASDAQ: BSDM) (the "Company" or "BSD") announced today that a major East Coast academic medical center (the "Center") has purchased a BSD-500 Hyperthermia System (BSD-500). The Center is launching an extensive new hyperthermia program to capitalize on the advantages provided by hyperthermia treatment.

"This latest sale is an indicator of the most recent success of hyperthermia in key academic medical centers for the treatment of certain recurrent cancer patients," said Harold Wolcott, BSD's President. BSD's website www.BSDMedical.com includes a list of all U.S. based hyperthermia treatment centers.

About the BSD-500 Hyperthermia System

The BSD-500 Hyperthermia System is used to deliver therapeutic heating (hyperthermia) using either non-invasive (external) hyperthermia, which is delivered using antennas placed over the tumor, or nterstitial hyperthermia, which is delivered using antennas that are inserted into the tumor, or a combination of both. The BSD-500 has received U.S. Food and Drug Administration (FDA) pre-market approval (PMA) for the use of hyperthermia in conjunction with radiation therapy to treat certain tumors.

About BSD Medical Corporation

BSD Medical Corporation develops, manufactures, markets and services systems to treat cancer and benign diseases using heat therapy delivered using focused radiofrequency (RF) and microwave energy. BSD's product lines include both hyperthermia and ablation treatment systems. BSD's hyperthermia cancer treatment systems, which have been in use for several years in the United States, Europe and Asia, are used to treat certain tumors with heat (hyperthermia) while increasing the effectiveness of other therapies such as radiation therapy. BSD's microwave ablation system has been developed as a stand-alone therapy to employ precision-guided microwave energy to ablate (destroy) soft tissue. The Company has developed extensive intellectual property, multiple products in the market and established distribution in the United States, Europe and Asia. Certain of the Company's products have received regulatory approvals and clearances in the United States, Europe and China. For further information visit BSD Medical's website at www.BSDMedical.com.

Statements contained in this press release that are not historical facts are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date.

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