Mr. Arun Menawat reports

PROFOUND MEDICAL ANNOUNCES PRELIMINARY UNAUDITED FOURTH QUARTER AND FULL YEAR 2023 REVENUES

Profound Medical Corp. has released preliminary unaudited revenues for the fourth quarter and full year 2023, and has provided an update on the progress it is making with the commercialization of Tulsa-Pro in the United States. Profound is providing this information due to the significant lag time between planned investment community meetings to be held in connection with, among other investor events, the 42nd annual J.P. Morgan Healthcare Conference in San Francisco and its expected reporting of final 2023 results in March, 2024.

Profound anticipates total revenues for the fourth quarter of 2023 to be in the approximate range of $1.9-million to $2.0-million, with the full amount coming from recurring revenue, which consists of the sale of Tulsa-Pro consumables, lease of medical devices, procedures and services associated with extended warranties. This represents recurring revenue growth of between 51 per cent and 59 per cent year over year, and between 10 per cent and 16 per cent sequentially over third quarter 2023. For the full year 2023, Profound anticipates total revenues to be in the approximate range of $7.1-million to $7.2-million. These figures are preliminary and unaudited, and actual revenues may differ.

"Our focus on early adopters and teaching hospitals resulted in the adoption of Tulsa-Pro continuing to increase throughout 2023, both in terms of installed base growth and existing system utilization," said Arun Menawat, Profound's chief executive officer and chairman. "Q4 2023 marked the seventh consecutive quarter of recurring revenue growth, and Tulsa-Pro is now installed at, or contracted with, 10 of the top-20 cancer hospitals in the United States as ranked by U.S. News and World Report, including prestigious institutions such as MD Anderson, Mayo Clinic-Rochester, UCLA Medical Center, Brigham and Women's Hospital, Johns Hopkins Hospital, and Cleveland Clinic, among others. The growth capital raised through our recent financing, which closed yesterday, puts us in a stronger position to make the requisite investments, particularly in our commercial organization, to maximize the exciting opportunity for Tulsa that we see ahead. In preparation for the permanent CPT Category 1 codes for Tulsa going into effect at the beginning of 2025 -- an anticipated major revenue inflection point for our business -- our top priorities for 2024 will be to further increase our Tulsa-Pro installed base, support increased system utilization, complete our ongoing Level 1 Captain trial comparing the Tulsa procedure to radical prostatectomy for the treatment of prostate cancer, and advance additional Tulsa [artificial intelligence] modules designed to increase both the ease and speed of prostate disease treatment. We look forward to updating investors as we progress."

About Profound Medical Corp.

Profound is a commercial-stage medical device company that develops and markets customizable, incision-free therapies for the ablation of diseased tissue.

Profound is commercializing Tulsa-Pro, a technology that combines real-time MRI, robotically driven transurethral ultrasound and closed-loop temperature feedback control. Tulsa-Pro is designed to provide customizable and predictable radiation-free ablation of a surgeon-defined prostate volume while actively protecting the urethra and rectum to help preserve the patient's natural functional abilities. Tulsa-Pro has the potential to be a flexible technology in customizable prostate ablation, including intermediate-stage cancer, localized radio-recurrent cancer, retention and hematuria palliation in locally advanced prostate cancer, and the transition zone in large-volume benign prostatic hyperplasia. Tulsa-Pro is CE marked, Health Canada approved, and 510(k) cleared by the U.S. Food and Drug Administration.

Profound is also commercializing Sonalleve, an innovative therapeutic platform that is CE marked for the treatment of uterine fibroids and palliative pain treatment of bone metastases. Sonalleve has also been approved by the China National Medical Products Administration for the non-invasive treatment of uterine fibroids and has FDA approval under a humanitarian device exemption for the treatment of osteoid osteoma. The company is in the early stages of exploring additional potential treatment markets for Sonalleve, where the technology has been shown to have clinical application, such as non-invasive ablation of abdominal cancers and hyperthermia, for cancer therapy.

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