Molecular Diagnostics Discharges Senior Debt Holder; $1,000,000 Shareholder Investment Enables Return of All Assets to MDI's Control.

Business Editors

CHICAGO--(BUSINESS WIRE)--April 2, 2003

Molecular Diagnostics, Inc. (OTCBB:MCDG) announced today that it has made the final payment to Round Valley Capital (RVC), a preferred debt holder whose position was secured by all of MDI's assets. The final closing payment was made in conjunction with a $1,000,000 investment from a current shareholder and company insider. Removal of RVC's position is concurrent with their return of all shares initially granted as part of the initial loan.

MDI is now free to develop, license, sell, or otherwise align itself with strategic partners. As previously announced, a number of prominent and mid-sized companies in or related to the cytotechnology space have shown considerable interest in entering into a strategic partnership, or acquiring all or various components of the company's intellectual property.

According to Peter Gombrich, President and CEO of MDI, "We are excited to have repaid this debt. This is a major milestone in the company's restructuring. We can now proceed with our key initiatives of establishing strategic alliances and partnerships, as well as completing the clinical trials for InPath Cocktail-CVX System."

About Molecular Diagnostics, Inc.

Molecular Diagnostics develops cost-effective cancer screening systems, which can be utilized in a laboratory or at the point-of-care, to assist in the early detection of cervical, gastrointestinal, and other cancers. The InPath(TM) System is being developed to provide medical practitioners with a highly accurate, low-cost, cervical cancer screening system that can be integrated into existing medical models or at the point-of-care. Other products include SAMBA(TM) Telemedicine software used for medical image processing, database and multimedia case management, telepathology and teleradiology. Molecular Diagnostics also makes certain aspects of its technology available to third parties for development of their own screening systems.

Certain statements in this release are forward-looking. These statements are based on Molecular Diagnostics' current expectations and involve many risks and uncertainties, such as the possibility that clinical trials will not substantiate the Molecular Diagnostics' expectations with respect to the InPath(TM) System, and other factors set forth in reports and documents filed by Molecular Diagnostics with the Securities and Exchange Commission. Molecular Diagnostics undertakes no obligation to publicly update or revise any forward-looking statements contained herein.