BSD Medical receives $5.7 million quarterly payment from American Medical

By Angela McDaniels

Seattle, Dec. 6 - BSD Medical Corp. said the company has received a payment of nearly $5.7 million as quarterly proceeds from the earn-out of the sale of TherMatrx Inc. to American Medical Systems Inc.

The amount of the payment was based on the level of sales of TherMatrx products during the third quarter of 2005. This brings the total payments collected by BSD from the sale of TherMatrx to over $27 million.

The recent payment will be reflected in the company's non-operating income and cash position for the second quarter of fiscal 2006, which began Dec. 1. A prior quarterly payment will be similarly reflected in BSD's first-quarter results.

The company will receive one additional quarterly payment.

Salt Lake City-based BSD Medical primarily develops cancer treatment systems but has also pioneered the use of microwave thermal therapy for the treatment of symptoms associated with enlarged prostate, the company said.

BSD established TherMatrx to commercialize this technology. The company then sold its interest in TherMatrx in July 2004 in order to use funding from the sale to commercialize its systems to treat cancer and other medical conditions.

American Medical Systems is based in Minnetonka, Minn., and manufactures medical devices.

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