Contact: Dennis Gauger
BSD MEDICAL CORPORATION	Telephone: (801) 972-5555
2188 West 2200 South	Facsimile: (801) 972-5930
Salt Lake City, Utah 84119-1326	Email: investor@bsdmc.com
	NASDAQ:BSDM

For Immediate Release

BSD Medical Announces First Quarter Fiscal 2012 Financial Results

SALT LAKE CITY, January 10, 2012—BSD Medical Corporation (NASDAQ:BSDM) (Company or BSD) (www.BSDMedical.com), a leading provider of medical systems that treat cancer and benign diseases using heat therapy, today reported financial results for its first fiscal quarter ended November 30, 2011, including:

· Cash and cash equivalents of $15.7 million

· No debt

· Total stockholders’ equity of $19.7 million

· Total revenues of $658,998, a 30% increase over total revenues of $506,985 for the first quarter of last fiscal year

· Net loss of $1,687,405

· Net cash used in operating activities of $1,378,264

“A significant portion of the increase in our revenues came from the successful implementation of a fee-per-use equipment rental program for our MicroThermX® Microwave Ablation System (“MicroThermX®”),” said Harold Wolcott, President of the Company.  “This rental program was designed to accelerate revenues from the MicroThermX® line of products, and the program has generated a revenue stream from sales of disposable SynchroWave antennas combined with highly profitable equipment rental fees.  We believe the fee-per-use rental program will produce successful results throughout the United States.  We continue to have a strong balance sheet, no debt, and believe we are sufficiently capitalized to continue the global rollout of our MicroThermX® line of products.”

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 ablate and destroy soft tissue.  The Company has developed extensive intellectual property, multiple products in the market, and well established distribution in the United States, Europe and Asia.  Certain of the Company’s products have received regulatory approvals in the United States, Europe and China.  For further information visit BSD Medical's website at www.BSDMedical.com.

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	Contact: Dennis Gauger
BSD MEDICAL CORPORATION	Telephone: (801) 972-5555
2188 West 2200 South	Facsimile: (801) 972-5930
Salt Lake City, Utah 84119-1326	Email: investor@bsdmc.com
	NASDAQ:BSDM

Forward-Looking Statements

Statements contained in this press release that are not historical facts, including statements relating to our MicroThermX® line of products, 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, including the market demand for our MicroThermX® products and the regulatory requirements we face. 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, except as required by law.

BSD MEDICAL CORPORATION
Condensed Balance Sheets
(Unaudited)
ASSETS	November 30, 2011			August 31, 2011
Current assets:
Cash and cash equivalents	$	15,728,584		$	17,135,968
Accounts receivable, net of allowance for doubtful accounts of $20,000		418,527			397,264
Related party trade accounts receivable		163,497			408,323
Inventories, net		2,463,269			2,406,214
Other current assets		97,824			121,148
Total current assets		18,871,701			20,468,917
Property and equipment, net		1,443,105			1,445,897
Patents, net		19,827			25,092
	$	20,334,633		$	21,939,906
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	171,412		$	301,936
Accrued liabilities		265,934			332,004
Deferred revenue – current portion		79,319			42,214
Total current liabilities		516,665			676,154
Deferred revenue – net of current portion		144,724			192,158
Total liabilities		661,389			868,312
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value; 10,000,000 shares authorized, no shares issued and outstanding		-			-
Common stock, $.001 par value, 80,000,000 shares authorized, 29,686,154 shares issued		29,686			29,686
Additional paid-in capital		50,747,784			50,458,729
Treasury stock, 24,331 shares at cost		(234	)		(234	)
Accumulated deficit		(31,103,992	)		(29,416,587	)
Total stockholders’ equity		19,673,244			21,071,594
	$	20,334,633		$	21,939,906

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BSD MEDICAL CORPORATION

Condensed Statements of Comprehensive Loss

(Unaudited)

		Three Months Ended November 30,
		2011		2010
Revenues:
Sales	$	317,488	$	454,929
Sales to related parties		300,860		10,456
Equipment rental		40,650		41,600
Total revenues		658,998		506,985
Cost of Revenues:
Cost of sales		154,492		344,083
Cost of related party sales		213,439		9,247
Cost of equipment rental		2,947		6,399
Total cost of revenues		370,878		359,729
Gross margin		288,120		147,256
Operating costs and expenses:
Research and development		536,735		77,296
Selling, general and administrative		1,454,835		1,023,931
Total operating costs and expenses		1,991,570		1,101,227
Loss from operations		(1,703,450)		(953,971)
Other income (expense):
Interest income		18,059		7,585
Other income (expense)		(2,014)		(915)
Total other income (expense)		16,045		6,670
Loss before income taxes		(1,687,405)		(947,301)
Income tax benefit		-		-
Net loss and comprehensive loss	$	(1,687,405)	$	(947,301)
Net loss per common share:
Basic	$	(0.06)	$	(0.04)
Diluted	$	(0.06)	$	(0.04)
Weighted average number of shares outstanding:
Basic		29,686,000		26,881,000
Diluted		29,686,000		26,881,000

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