Digirad to Display All-in-One, Mobile Cardius-3 Gamma Camera at Americ

    Business Editors/Health/Medical Writers

    POWAY, Calif--(BUSINESS WIRE)--March 4, 2005--Digirad Corporation (Nasdaq:DRAD), a leader in providing solid-state medical imaging products and services to physician offices, hospitals and imaging centers, today announced that it will display a prototype of its all-in-one, mobile triple head cardiac gamma camera at the American College of Cardiology meeting in Orlando, Florida on Sunday, March 6, 2005. The prototype's all-in-one chassis supports the camera, chair and acquisition processing station on a single frame.
    The Cardius(TM)-3M AIO ("all in one") is the mobile prototype of Digirad's high performance Cardius-3 imager, designed for exclusive use by Digirad Imaging Solutions (DIS), Digirad's imaging leasing services division. DIS performed over 89,000 nuclear cardiology studies in 2004 in physician offices and hospitals, using primarily Digirad's mobile single head cameras. The Cardius-3 imaging system produces excellent image quality and is capable of sub-7 minute stress acquisitions, allowing higher count images to be completed in less time.
    "We designed this mobile prototype of our triple head gamma camera to allow us to introduce our Cardius-3 technology to our DIS customers. Testing of the mobile prototype is now underway to provide us with data concerning the workflow and operational efficiencies of the Cardius-3 system in a mobile environment. We believe that the addition of a mobile version of our Cardius-3 system to DIS' leasing services may allow us to improve customer satisfaction as well as DIS' operating margins, and may make DIS lease services particularly attractive to larger cardiology practices and hospitals," said David Sheehan, President and CEO, Digirad. "We believe that this new, single chassis may become a smaller-footprint platform for all of our Cardius product-line cameras."

    About Digirad

    Digirad Corporation develops, manufactures and markets solid-state, digital gamma cameras to hospitals, imaging centers and physician offices. Digirad offers a comprehensive line of solid-state nuclear gamma cameras that can be used for the detection of many medical conditions including cardiovascular disease. Digirad believes that these imaging systems produce a high-quality image and due to their lightweight and compact design, they fit easily into small office spaces. Through its wholly owned subsidiaries, Digirad Imaging Solutions and Digirad Imaging Systems, Digirad also offers a comprehensive and mobile imaging leasing and services program for physicians who wish to perform nuclear cardiology procedures in their offices but do not have the patient volume, capital or resources to justify purchasing a gamma camera. Digirad Corporation, Digirad Imaging Solutions and Digirad Imaging Systems are headquartered in Poway, California. For more information, please visit www.digirad.com. Digirad(R) and Digirad Imaging Solutions(R) are registered trademarks of Digirad Corporation. Cardius(TM) is a trademark of Digirad Corporation.

    Forward-Looking Statements

    Digirad cautions that statements included in this press release that are not a description of historical facts are forward-looking statements. Forward-looking statements give expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning in connection with a discussion of future operating or financial performance or events. In particular, these include statements relating to future actions, prospective products, services or market opportunities, future performance or results of current and anticipated products or services, and financial results. The inclusion of forward-looking statements should not be regarded as a representation by Digirad that any of its plans will be achieved. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in Digirad's business including, without limitation: the degree to which Digirad's existing imaging systems and services, including the Cardius-3 and its mobile prototype, will be accepted by physicians and hospitals; Digirad's ability to compete against large, well-established competitors with significantly greater resources; any unforeseen changes in domestic and international legislation, regulation or coverage and reimbursement policies of third-party payors; Digirad's ability to timely develop new products, product enhancements or enhancements of the operational and workflow efficiencies of its services that are accepted by the market; Digirad's lack of a diversified line of products and services; any technical problems that may develop with respect to Digirad's imaging systems, including the Cardius-3 and its mobile prototype, or any manufacturing or supply problems or price fluctuations that may affect Digirad's third-party suppliers; Digirad's ability to manage risks relating to product liability, warranty claims, recalls, property damage and personal injury with respect to its imaging systems, including the Cardius-3 and its mobile prototype; Digirad's compliance with extensive and complex product service and reimbursement regulations, licensure and reporting requirements of the Food and Drug Administration and other state and federal agencies; Digirad's ability to protect its intellectual property and proprietary technology through patents and other means and defend against claims by third parties; and other risks detailed in Digirad's Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2004.
    Given these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Digirad undertakes no obligation to revise or update this press release including the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

    DRADG

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CONTACT: Digirad Corporation Diana Bowden, 858-726-1600 dbowden@digirad.com or Lippert/Heilshorn & Associates Ina McGuinness or Bruce Voss, 310-691-7100 imcguinness@lhai.com

KEYWORD: CALIFORNIA FLORIDA INDUSTRY KEYWORD: MEDICAL DEVICES MEDICAL PRODUCT SOURCE: Digirad Corporation

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