AFP Imaging Reports First Quarter and Three Month Results for Fiscal Year Ending June 30, 2008.

ELMSFORD, N.Y. -- AFP Imaging Corporation (OTCBB: AFPC) today reported sales and earnings for the first quarter ended September 30, 2007. Net revenues were $7,448,055 for the quarter, an increase of 36% from the comparable quarter in the prior year, and includes the results of QR,srl, our new subsidiary in Verona, Italy, for this period.

The Company reported a loss of $713,511 or ($.04) per basic share for the first quarter in Fiscal 2008, compared to a loss of $567,860 or ($.05) per basic share in the comparable period of FY 2007. The results for FY 2008 include the non-cash amortization of intangibles of $288,454 and a foreign currency gain of $577,123, both related to the acquisition of QR. The Company reported increased operating expenses associated with its marketing, support and distribution of its new three dimensional dental imaging product line. The Company is also investing in establishing a distribution channel for its digital products, directly to doctors, dentists and other professional end users.

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David Vozick, Chairman of AFP Imaging, said, "The Company is continuing to aggressively market and promote its new, three dimensional CBCT (cone beam CT) dental x-ray scanner. We have expanded our product line with the introduction of our latest "VG" model. These efforts also required an investment in an educational process for the benefit of potential buyers before making their purchase decision. Research and development expense were required to bring the new CBCT model to market and gain the necessary regulatory approvals. The Company will begin deliveries in November and expects to have a number of installations prior to the end of this calendar year."

AFP Imaging is a state of the art diagnostic imaging supplier whose products are distributed worldwide with clinical applications for dental, medical and veterinary professionals. Our technology and product lines are providing the gateway for future internal and external growth. Over twenty nine years, the Company has produced branded products that are installed in over 100,000 dental and medical facilities. This base serves as reference points for future sales of equipment and software. The company's products are trademarked with brand names that include AFP, DENT-X, EVA and NEWTOM. For additional corporate information please visit our web sites at www.afpimaging.com, www.dent-x.com and www.newtomdental.com.

The remarks contained in this press release and presented elsewhere by management from time to time contain forward-looking statements, which involve risks and uncertainties, including statements regarding the Company's plans, objectives, expectations and intentions. The Company's actual results may differ significantly from the results discussed in this press release or in other forward-looking statements presented by management. Among the factors that could cause actual results to differ materially include the failure of revenue on new products to develop as estimated, regulatory delays, loss of existing customers, the Company's inability to meet increasing demand for its new products, general downward trends in the Company's industry and other risk factors as described in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectation or any change in events, conditions or circumstances on which such statement is based.