Viking Systems, Inc. Expands Distribution Network Internationally in Korea, The Netherlands and Ukraine; Continued Growth of Minimally Invasive Surgery in Asia and Europe Creates Demand for Viking's Innovative 3-D Surgical Technology.

SAN DIEGO -- Viking Systems, Inc. (OTCBB: VKSY), a designer, manufacturer and marketer of high-performance laparoscopic vision systems for use in minimally invasive surgical (MIS) procedures, has expanded its international distribution network by adding three new strategic partners in Korea, The Netherlands and Ukraine.

Viking Systems entered the Asian market by signing an exclusive agreement with LeoMedics Co., Ltd. based in Seoul, Korea. Hospital evaluations of Viking's technology will begin in August with Korean FDA clearance projected prior to the end of 2006.

"Minimally invasive surgery is growing rapidly in Korea and our exclusive agreement to market Viking System's innovative and economical EndoSite 3Di Digital Vision System provides us with the opportunity to better serve our hospitals and their patients," said Yong-Jin Cho, Chief Executive Officer of LeoMedics. "In addition to the restoration of depth perception, our surgeons are attracted by the comfort of the head mounted displays versus the strain of viewing a distant monitor especially during longer procedures. We believe Viking's EndoSite 3Di Digital Vision System will become the standard for all minimally invasive surgery in the future."

Viking Systems has also expanded its European penetration by entering into exclusive agreements with Arsis Medical in The Netherlands and MedComplex-MC Ltd. in Ukraine. These countries, in addition to exclusive agreements already established in Italy, Germany, Austria, Switzerland, Sweden and Russia, strongly position Viking Systems to capitalize on the growth of MIS throughout Europe.

"Surgeons and hospitals around the world are rapidly adopting the benefits of our 3-D technology to enhance their performance in complex minimally invasive procedures," stated Stephen Heniges, Vice President, Corporate Accounts and International Business at Viking Systems. "The visual aspect of depth perception, which has been a critical missing component from traditional minimally invasive surgery, translates to better patient outcomes and reduced operating times. Our international customers also appreciate the shortened learning curve our EndoSite 3Di device provides for mastering new and complex procedures."

"Our 3-D technology and equipment creates a high performance, 'native' skill environment for the surgeon and surgical team, in addition to a unique and sizable market opportunity for the Company within the rapidly growing minimally invasive surgical space," concluded Donald E. Tucker, President and Chief Executive Officer of Viking Systems. "As we continue to expand both internationally and in the U.S., Viking remains focused on delivering innovative, cost-effective solutions for use in digital operating rooms (ORs) of all sizes and capabilities."

Viking Systems will continue to pursue strategic partners in key markets globally and expects to further penetrate Asia and Europe in the near future.

About Viking Systems, Inc.

Viking Systems, Inc. is a designer, manufacturer and marketer of FDA-cleared, CE-marked, high-performance laparoscopic vision systems. The Company's primary branded product is the EndoSite 3Di Digital Vision System, an advanced three-dimensional (3-D) vision system used by surgeons for complex minimally invasive laparoscopic surgery, with an initial focus on applications in urology, gynecology, bariatrics and general surgery. Viking also manufactures advanced two-dimensional (2-D) EndoSite 2Di Digital Vision Systems for targeted configurations and channels, as well as 2-D cameras and components, sold through strategic partner and OEM programs.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements including, but not limited to, our ability to execute on our business plan during 2006 and beyond, our strategic planning and business development plans, our future financing needs, impacts on our financial results, and our future growth. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, our ability to market our products, the success of business development efforts, competition in the industry, and our ability to manage growth, as well as the risks and other factors set forth in our periodic filings with the U.S. Securities and Exchange Commission (including our Form 10-KSB for the year ended December 31, 2005 and our Form 10-QSB for the quarter ended March 31, 2006.)