DiaSys Enters Mexican Market Through Distribution Agreement with Leading Clinical Diagnostics Distributor in the Country; Company Enters Third Key Latin American market in Recent Months.

WATERBURY, Conn. -- DiaSys Corporation (AMEX: DYX) a global diagnostics products company, announced today that it has entered into an agreement with Grupo Mex Lab, a leading Mexican-based distributor of diagnostics products, to distribute its products in Mexico. Founded ten years ago, Grupo Mex Lab has a network of 300 distributors throughout Mexico and offices in Guadalajara and Mexico City. The distribution agreement is expected to allow DiaSys to offer its parasite tests to both the private lab and public social security administration. Currently, the reimbursed value of the market for such tests is approximately $140 million.

"We believe that the Mexican market represents a significant opportunity for us," said Jose Puig, DiaSys Corporation's Sales Manager for Latin America. "Based upon Grupo Mex Lab's large distribution network and significant demand for parasite testing among both the public and private sectors, there exists a significant opportunity to grow sales rapidly. We also think that this distribution agreement will allow us to offer a complete line of rapid tests and Elisa kits, through the recently announced agreement to acquire Biocheck and Evernew Biotech, as Grupo Mex Lab is a provider of rapid diagnostic tests to the Mexican government as well as the country's armed forces."

There are over 28 million parasite tests performed annually in Mexico, with the Mexican Institute of Social Security and the Social Security Institute for State workers performing 26 million of those tests. The private sector performs an additional two million tests per year. The reimbursement for a parasite test in the country is approximately $5 per test. These numbers don't include urine sediment analysis that is even higher in terms of volume.

Previously, DiaSys entered into distribution agreements with Tecnodiagnsostica, the largest distributor of clinical diagnostic products in Costa Rica and Repreclin S.A., a large clinical diagnostics distributor based in Venezuela.

DiaSys Corporation designs, develops, manufactures and distributes proprietary medical laboratory equipment, consumables and infectious disease test kits to healthcare and veterinary laboratories worldwide. Headquartered in Waterbury, Connecticut, the Company operates in Europe through its wholly owned subsidiary based in Wokingham, England. DiaSys, Parasep and Urisep are registered trademarks of DiaSys Corporation.

This press release contains forward-looking statements within the meaning of, and made pursuant to, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or events, or timing of events, relating to the Company to materially differ from those expressed or implied by such forward looking statements. DiaSys refers interested parties to its most recent Annual Report on form 10-KSB and other SEC filings for a complete description of, and discussions about, the company.