AFP Imaging Sells QR Subsidiary - Becomes Exclusive Distributor for Cefla Dental Group.

ELMSFORD, N.Y. -- AFP Imaging Corporation (OTC: AFPC:PK) announced today that it has sold its Italian Quantitative Radiology ("QR") subsidiary to Cefla Capital Services, SpA ("Cefla") in a stock purchase transaction. QR of Verona, Italy will distribute its NewTom ConeBeam, three-dimensional dental x-ray equipment exclusively through AFP Imaging in North, Central and South America, Australia, South Africa and Israel. Cefla's Dental Group, located in Imola, Italy, is a major manufacturer of a broad line of dental equipment and a subsidiary of Cefla, a multi-national manufacturing conglomerate of technology products to numerous industries.

The proceeds of the sale have been used to significantly reduce AFP's domestic secured debt, increase its working capital and will better position the company to expand its distribution throughout the world for its products. AFP will continue to manufacture and distribute, world-wide, its other x-ray imaging products which include EVA digital sensors, panoramic x-rays and film processors.

The QR NewTom three-dimensional imaging products have been successfully marketed by AFP for the past three years with over 250 of these installed units throughout North and South America as well as in other territories. Three dimensional, diagnostic imaging is a leading edge technology utilized in treatment planning for dental implants, orthodontics and other specialized procedures including sleep apnea analysis.

R. Scott Jones, Chairman of AFP, commented "Through this transaction and working with Cefla, we have a new, long term strategy, in which the Company will have access to greater sales and marketing resources along with a broader dental product line. Cefla is a well established, Italian supplier of dental chairs, operatory delivery systems, panoramic x-ray units and, now, ConeBeam, 3D radiography. Cefla's Dental Group will have AFP as its strong distributor, in our marketplace, to expand our mutual, global growth efforts. The Cefla products have outstanding functions, features and benefits for the dental professional along with attractive modern design. We look forward to the many opportunities this transaction presents for the Company's customers, employees and shareholders."

About AFP:

AFP Imaging, a leading state of the art diagnostic imaging supplier with revenues of approximately $30 million, is a market leader with products for clinical applications in dental, medical and veterinary medicine under the brand names of AFP, DENT-X, EVA and NEWTOM. For over 30 years, the Company has developed and manufactured products that are installed in over 100,000 dental and medical facilities world-wide, including its latest digital imaging systems where it is a market leader in the ConeBeam 3D x-ray imaging market. For additional corporate information please visit the company's corporate web site at www.afpimaging.com.

About Cefla Dental

Cefla Dental is a leading manufacturer of dental equipment; based in Imola (Bologna - Italy) with a full range of state of the art dental chairs, sterilizers and digital radiology equipment under the brand names Anthos, Stern Weber, Castellini, Victor, Mocom and MyRay. Cefla Dental is a subsidiary of Cefla s.c., a 76 years old company, owned in form of cooperative by approximately three hundred of its more than sixteen hundred associates. Cefla s.c. reached a record net sales in 2008 close to 400 million Euros and has operations in 12 different countries. For more information visit the Cefla and the Cefla Dental web sites at www.cefla.it and www.cefladentale.it.

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 risks 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.