Diomed Announces Shipment of First VeinViewer Imaging Systems.

ANDOVER, Mass. -- Diomed Holdings, Inc. (AMEX: DIO), a leading developer and marketer of minimally invasive medical technologies, including its patented EndoVenous Laser Treatment(R) (EVLT) for varicose veins, today announced the market introduction of the VeinViewer(TM) Imaging System for use in sclerotherapy, phlebectomy and varicose vein treatment.

"Last week we commenced commercial shipment of the VeinViewer(TM) and we are thrilled to now be in a position to fill the growing list of orders in this much anticipated product introduction," stated James A. Wylie, Chief Executive Officer of Diomed Holdings, Inc. "The VeinViewer has generated a great deal of excitement and intense interest over the past several months and we look forward to its initial impact during the second quarter."

The VeinViewer(TM), manufactured by Luminetx Corporation and cleared by the FDA in 2004, is a breakthrough patented biomedical imaging system which utilizes near-infrared light to illuminate, on a real-time basis, subcutaneous veins to an average depth of 8mm and projects their location on the surface of the skin with an accuracy of 0.06 mm. VeinViewer(TM) is a unique guidance tool allowing physicians to visualize the exact location and orientation of the patient's veins, thereby providing more precise sclerotherapy and phlebectomy procedures through increased accuracy in vein targeting. Unlike other methods of targeting veins, this hands free technology uses harmless near-infrared light to increase physician effectiveness and decrease the amount of time to locate a vein.

Steven E. Zimmet, MD, Zimmet Vein and Dermatology, Austin, Texas and President of the American College of Phlebology commented, "The first time I saw the VeinViewer in action I was astounded. It's clear to me that VeinViewer will become a very useful tool in my everyday phlebology practice."

Diomed's target market for the VeinViewer(TM) encompasses physician specialties practicing radio frequency and endovenous laser ablation of the greater saphenous vein and its tributaries. The Company estimates that there are between two and three million sclerotherapy and ambulatory phlebectomy procedures performed annually in the United States. Diomed plans to display the VeinViewer(TM) at the upcoming Society of Vascular Surgery Annual Meeting in Philadelphia this June and other leading medical conferences later in the year.

"This is a remarkable milestone, and we expect to continue to ramp-up our VeinViewer sales as Luminetx expands its manufacturing output during the quarter," added Wylie. "Importantly, the VeinViewer is proving to be exactly what we thought it would be --- a door opener for Diomed's sales force to access competitive laser and radiofrequency physicians, and the entire market for venous disease management solutions."

Additional information about the VeinViewer(TM) product can be found at www.DiomedInc.com.

About Diomed

Diomed develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed's EVLT(R) laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy (PDT) for use in cancer treatments, and dental and general surgical applications. The EVLT(R) procedure and the Company's related products were cleared by the United States FDA in January of 2002. Along with lasers and single-use procedure kits for its EVLT(R) laser vein treatment, the Company provides its customers with state of the art physician training and practice development support. Additional information is available on the Company's website: www.evlt.com.

EVLT(R) is a registered trademark of Diomed Inc., Andover, MA.

Safe Harbor

Safe Harbor statements under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with trends in the products markets, reliance on third party distributors in various countries outside the United States, reoccurring orders under OEM contracts, market acceptance risks, technical development risks and other risk factors. These statements relate to our future plans, objectives, expectations and intentions. These statements may be identified by the use of words such as "may," "will," "should," "potential," "expects," "anticipates," "intends," "plans," "believes" and similar expressions. These statements are based on our current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties. Our actual results could differ materially from those discussed in these statements. Our Annual Report on Form SEC 10-KSB/A (the "Annual Report") contains a discussion of certain of the risks and uncertainties that affect our business. We refer you to the "Risk Factors" on pages 23 through 38 of the Annual Report for a discussion of certain risks, including those relating to our business as a medical device company without a significant operating record and with operating losses, our risks relating to our commercialization of our current and future products and applications and risks relating to our common stock and its market value. Diomed disclaims any obligation or duty to update or correct any of its forward-looking statements.