Positron Corporation Research Coverage Initiated by Beacon Equity Research.

DALLAS -- Positron Corporation (OTCBB: POSC) has been rated "Speculative Buy" with a near term target price of $0.70 by Beacon Equity Senior Research Analyst, Lisa Springer, CFA.

The full report is available at http://www.BeaconEquityResearch.com

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In the report Ms. Springer writes, "Positron designs, manufactures, sells, and services competitively-priced Positron Emission Tomography ("PET") scanners. These scanners are used to diagnose, stage, and treat critical illnesses such as cancer, coronary disease and neurological disorders, such as Dementia, Alzheimer's and Parkinson's disease. Positron is positioning to be a leader in providing end users total disease solutions. Their business plan is currently focused on introducing an innovative coronary disease reversal and prevention solutions package. The timing of this package is very opportunistic in light of the governments focus on healthcare dollars as well as the aging of the highly educated baby boomer population."

"Positron's competitors in the PET scanner market include Siemens (NYSE:SI), GE Healthcare (NYSE:GE), Philips Medical Systems, and Hitachi Medical Systems (NYSE: HIT). Positron plans to compete by manufacturing and marketing a more cost-competitive scanner. The Company has formed an R&D and manufacturing joint venture with Neusoft Medical Systems, one of China's largest medical device companies."

"The Company anticipates 2006 revenues of approximately $1.3 million from service revenue and the sale of three PET systems in the fourth quarter. Through the joint venture with Neusoft and integration with IS2 the Company anticipates 2007 revenues of $21 million and gross profits of $6 million. Based on selling costs estimated at approximately 9% of revenues, 2007 operating profits from PET systems could exceed $4 million. The Company also expects to commence sales of PET/CT systems in 2007 that would increase projections for 2007. At a retail price of approximately $1 million per PET/CT system, sales from this product line could significantly impact revenues in 2007 and years to follow."

"Positron and Quantum Molecular Pharmaceutical have acquired all of the operating assets of IS2 Medical Systems, Inc. ("IS2") through a minority-owned subsidiary of the Company, Imaging PET Technologies, Inc. ("IPT"). IS2 is a developer and manufacturer of SPECT nuclear imaging devices based in Canada. The Company and Quantum hold 49.9% and 50.1%, respectively, of the total registered capital of IPT. IS2 anticipates over $5 million in revenue in 2007, of which 49.9% will be consolidated into Positron's operations."

Beacon Equity Research Disclosure

The analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. The analyst(s) writing this report recognize and aspire to all of the CFA Institute Guidelines for Independent Research. Beacon Equity Research ("Beacon") certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analysts in the report. Beacon Research and its affiliates have directly been compensated one million restricted rule 144 shares directly from the Company for enrollment in its research program and other services. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change.