AccuImage Obtains FDA Clearance for Next Generation Software Products.

SOUTH SAN FRANCISCO, Calif.--(BW HealthWire)--July 28, 1999--

AccuImage Diagnostics Corp. (OTC BB:AIDP) announced today that the company has received 510(k) clearance from the Food and Drug Administration (FDA) for the core modules of its next generation software suite.

The software allows for high-speed two-dimensional and three-dimensional DICOM medical image processing, visualization and transmission within the hospital network and to home over the Internet (via ISDN, DSL, or cable modem). All AccuImage products are optimized for standard pentium based personal computers running the Windows 95/98/NT operating systems.

"FDA 510(k) clearance means that we can extensively market and sell our new product," says Shelley Staggs, vice president of Sales and Marketing. "Our beta sites have been enthusiastic. Now we can provide all our customers with a powerful platform that both serves their immediate needs and is scalable for future requirement."

Many features in the new AccuImage software typically are found only in much more expensive products. For example, the AccuVRT module quickly and flexibly renders life-like three-dimensional displays of any body structure. It is a powerful visualization tool for vascular anomalies, renal disease, tumor characteristics, as well as pre-surgical planning and post-surgical follow-up.

AccuProjector, another module in the recently approved suite, provides the capability to perform maximum intensity projections and multi-planar reformatting of medical data.

AccuImage's market size encompasses the entire digital medical field since the software suite works on data from any medical acquisition device vendor such as General Electric (NYSE:GE), Siemens or Toshiba. AccuImage also has an OEM relationship with Imatron Inc. (Nasdaq:IMAT), the gold standard in cardiac imaging, to provide the visualization software included with all new sales of Imatron's ultra-fast CT scanner.

Recently, AccuImage has made several other announcements. In June the company filed a Form 10-SB with the SEC to become a reporting public company. Investment and brokerage houses will be able to exchange information with interested parties more freely once the 10-SB is approved.

In March, Dr. Robert Taylor, a crack designer of interactive three-dimensional computer games, was appointed chief technology officer. In December, the company broke into government sales by shipping product to Walter Reed Army Hospital. In November, the company unveiled their next generation software suite at the meeting of the Radiological Society of North America (RSNA).

In October, the company announced their entrance into the PACS field (Picture Archiving and Communication System). PACS gives the medical professional access to images through connections to the Internet or a hospital Intranet. The PACS business is estimated to be a $465 million dollar market per year that will continue to grow explosively due to the managed care environment.

AccuImage software products are installed at leading hospitals and clinics internationally, including University of California-San Francisco, UCLA, Mayo Clinic, Stanford University, University of Munich, Singapore National University, Youngsei Hospital, University of Graz, HeartScan USA, HeartScan South Africa and Taiwan National University Hospital.

Statement Under the Private Securities Litigation Reform Act:

With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors, which are outside the control of the company.

AccuImage Diagnostics Corp. 400 Oyster Point Blvd., Suite 114 South San Francisco, CA 94080 Phone: [phone] Fax: [phone] http://www.accuimage.com