AccuImage Diagnostics Corporation Announces the Election of a New Board of Directors.

Business Editors/High-Tech Writers

SAN FRANCISCO--(BUSINESS WIRE)--March 17, 2004

Avi Faliks, CEO, of AccuImage Diagnostics (OTCBB:AIDP) announced the formation of a new Board of Directors at AccuImage. "We are very thankful for the support of the members from our previous Board of Directors" says Mr. Faliks. "We are very pleased that we were able to assemble an excellent team for our new Board that will help us expand our market presence and provide quality support in helping us move AccuImage forward."

Joel L. Blank, Ph.D.

Dr. Blank has over 30 years of experience in the advanced technology, medical equipment and medical service fields, including management of marketing, sales, service, research and development and manufacturing operations and medical service business general management. Dr. Blank is a founder and principal of Radiosurgical Centers Corporation, a company formed in 1992 to develop and operate radiosurgery centers, and is the managing partner for San Diego Gamma Knife Center, L.P. Dr. Blank was a founder and CEO of Corgentech Inc., a private, venture-funded company formed in 1999 to develop and market novel molecular- and genetic-based therapies for treatment of cardiovascular and other disorders. Previously, he was the founding President and CEO of SYNARC Inc., a private, venture-funded company formed in 1998 to provide services to pharmaceutical companies on the use of advanced medical imaging techniques in the design and conduct of clinical trials. Until 1988, Dr. Blank was a Vice President of Diasonics MRI Division, participating in the start-up of Diasonics' MRI business which grew from a research and development project in 1981 to a $125 million per year business. Prior to joining Diasonics in 1981, Dr. Blank served as Director of New Product Marketing and as Director of Production for Pfizer Medical Systems in Columbia, Maryland, and as a Research Leader at Western Electric's Engineering Research Center (ERC) in Princeton, New Jersey. Dr. Blank received his Ph.D. degree in plasma physics in 1967 and his M.Eng. degree in 1993, both from Yale University, and his BME degree from Cooper Union in 1962.

David Goldbrenner

David Goldbrenner graduated Harvard University magna cum laude in electrical engineering. He worked on Wall Street and then entered technology consulting. In 1998, Mr. Goldbrenner started Idyllix Corporation to provide better information management software to publishing companies, and designed a revolutionary data indexing system for client Simon & Schuster. In 2001, he joined Oracle Corporation's Internet File System group. Recently, David has been teaching Mathematics in San Francisco.

Sourav Goswami

Sourav Goswami is co-founder and General Manager/VP Operations for Signet Programming Services, a clinical informatics company providing software solutions to the government and pharmaceutical companies. Prior to Signet PSI, Sourav has been a serial entrepreneur with 8 years of experience in management, finance and technology. In a previous role, Sourav was VP of Finance for a semiconductor startup, Systems on Silicon, which he successfully and profitably sold to TranSwitch Corporation, a publicly traded semiconductor company. Prior to and succeeding this role, Sourav helped manage the venture capital operations of TranSwitch. Prior to this role, Sourav helped establish and staff the software research and development division of Mutual of New York. Sourav also co-founded Lydstr0m, Inc., a Boston-based media startup, and consulted for NX Technologies, a relational database company, which was subsequently acquired in a private transaction. Sourav has consulted with several large companies in the areas of business strategy, IT strategy and finance. His clients have included MONY and Medicare Services, the largest private health insurance administration company in India.

Sourav is currently on the Board of Directors for Signet Programming Services and on the Board of Advisors for Accordion Networks, a venture-backed systems company based in Silicon Valley. Sourav has been an associate at Reckson Strategic Venture Partners and an analyst at Goldman, Sachs and Co., and received his Bachelor's degree from Harvard University and his MBA from Columbia University.

Ron Schilling, Ph.D.

Dr. Schilling has thirty-seven years of successfully launching, managing and leading the growth of high-technology worldwide companies. He has held executive management positions at GE, Toshiba, RCA and Diasonics. Additionally, he participated in the development of CMOS semiconductor memory, and led the world's first commercial introduction of magnetic resonance imaging. Dr. Schilling is active in the healthcare community as member of the Board of Advisors of the Society for Computer Applications in Radiology, the Radiology Outreach Foundation, and Diagnostic Imaging and Applied Radiology magazines. He is a past member of FutuRad of the Radiologic Society of North America (RSNA), a think tank established to determine the future of radiology. Dr. Schilling is also a member of the Management Committee of the Stanford Alumni Consulting Team and of the Advisory Board of the Dean of Engineering at UC Davis as well as a director of the Alzheimer's Association of the Greater Bay Area (Chair of the Board Development Committee). Dr. Schilling holds electrical engineering and management degrees from City College of N.Y., Princeton, Polytechnic Institute of N.Y. and Stanford.

Hirsch Handmaker, M.D.

Dr. Handmaker earned his Bachelor of Science degree at The University of Arizona and his M.D. at The University of Southern California College of Medicine. He was a founder, President and Chairman of the Boards of RadPharm, Inc., and Diagnostic Networks, Inc., was a member of the Board of Directors of The Cyclotron Corporation and Diatide, Inc., has been a consultant or advisor to various other public and private companies, and served as a Director of the Society of Nuclear Medicine Education and Research Foundation. He is the Founder and President of Healthcare Technology Group, a management and consulting firm specializing in providing technical and business advice to investors, private and public corporations, hospitals, medical practices, and individuals interested in the health care and medical technology business sectors. Dr. Handmaker served as Executive Director of the Arizona Institute of Nuclear Medicine and Medical Director of Papago Imaging, both in Phoenix, Arizona, from 1994 to 1997. He previously was Vice-Chairman of the Department of Nuclear Medicine, California Pacific Medical Center and Director of Nuclear Medicine at Children's Hospital of San Francisco for 22 years prior to his return to Arizona. He is a diplomat of the American Boards of Radiology and Nuclear Medicine and a Fellow of the American College of Nuclear Physicians. He has authored and co-authored over fifty original publications and two textbooks concerned with nuclear medicine and diagnostic imaging. Dr. Handmaker currently serves as Chairman and Acting CEO of VirtuRad, serves on The Advisory Board of The Arizona Cancer Center and is Chairperson of the Steering Committee of the Women's Cancer Prevention arm of The Arizona Cancer Center.

Chung Lew

Chung Lew has over 20 years in asset management. His career has spanned management positions with Prudential Securities, Kleinwort Benson N.A., Salomon Brothers Inc., Millennium Capital Management, and U.S. Trust Company of New York in the field of domestic and international investments. Currently he is a hedge fund manager with A-Squared Capital Management where he oversees trading and research operations for LBF Fund, LP. He received B.S. in Chemistry from The Johns Hopkins University in 1982.

About AccuImage Diagnostics Corporation

AccuImage is engaged in the development, marketing and support of software for visualization, analysis and management of medical imaging data, particularly in support of the rapidly growing market for expanded applications of CT scanning. The software brings value by reducing the time the physician needs for reviewing and reporting cases, enhancing the interpretation of studies, and providing 3-D images for marketing, promotion and patient information. Efficiency gains and cost savings are realized through automated reporting tools incorporating expert knowledge, and by providing hardware and software for distribution of the images and reports via internal networks as well as internet transmission to remote locations, to referring physicians and to patients. The Company has expanded its markets by creating unique products for digital radiography, by the offer of innovative obsolescence protection packages, and by expanding its line of report generation software. For company information please visit the AccuImage website at www.accuimage.com.

Except for the historical information contained herein, the matters discussed in this news release may contain forward-looking statements that are based on current expectations and estimates about the industry in which AccuImage operates, the estimated impact of certain technological advances, as well as management's beliefs and assumptions. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. The factors that could cause actual results to differ materially include, among others: reliance on product distributors; competition in the diagnostic imaging market; failure to improve product reliability or introduce new product models and enhancements; determinations by regulatory and administrative government authorities; and the risk factors listed from time to time in the Company's Securities and Exchange Commission reports.