DRAD Digirad Corporation

Digirad Corporation (NASDAQ:DRAD), a leading provider of cardiovascular imaging services and solid-state nuclear medicine imaging products to physician offices, hospitals and imaging centers, announced today that it has entered into a personal services and management agreement with Ultrascan, Inc., a leading provider of mobile ultrasound services in the greater Atlanta area, to offer Digirad's mobile nuclear cardiac imaging services to physician customers. Mark Casner, President and CEO of Digirad, said, "Ultrascan brings to this new relationship a well-established mobile imaging delivery capability and client base, including Emory University, that align very well with Digirad's nuclear cardiology services. We believe that our co-marketing and sales agreement with Ultrascan will substantially increase our presence in the important Atlanta market." "This relationship creates terrific growth opportunities for both companies. We are excited by the opportunity to introduce Digirad's state-of-the-art nuclear cardiac imaging services to the Atlanta area," added Mickey King, President and CEO of Ultrascan. About Ultrascan, Inc. With more than 100 clients, Ultrascan is the leading provider of mobile ultrasound and nuclear medicine services in the Southeast. All Ultrascan sonographers and Nuclear Medicine Technologists are registered either with the American Registry of Diagnostic Medical Sonographers, Cardiovascular Credentialing International, or the AART/NMRT. About Digirad Digirad Corporation develops, manufactures and markets solid-state, digital gamma cameras to hospitals, imaging centers and physician offices. Digirad offers a comprehensive line of solid-state nuclear gamma cameras that produce a high-quality image for use in the detection of many medical conditions, including cardiovascular disease. Digirad's cameras are unique as their lightweight and compact design allows them to fit easily into small office spaces. Digirad's wholly owned subsidiaries Digirad Imaging Solutions and Digirad Imaging Systems offer a comprehensive and mobile imaging leasing and services program for physicians who wish to perform in-office nuclear cardiology procedures but do not have the patient volume, capital or resources to justify purchasing a gamma camera. For more information, please visit www.digirad.com. Digirad(R), Digirad Imaging Solutions(R) and Cardius(R) are registered trademarks of Digirad Corporation. Forward-Looking Statements Digirad cautions that statements included in this press release that are not a description of historical facts are forward-looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts and use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning in connection with a discussion of future operating or financial performance or events. Examples of such statements include the statements regarding whether Digirad's new relationship with Ultrascan will substantially increase Digirad's presence in the Atlanta market, whether Digirad's and Ultrascan' s imaging delivery capabilities will be well aligned, and whether the relationship will create growth opportunities for both companies. The inclusion of these and other forward-looking statements should not be regarded as a representation by Digirad that any of its plans will be achieved. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in Digirad's business including, without limitation: the degree to which personnel changes and related disruptions in our business activities may affect Digirad's products, customers, work force, suppliers, and our overall business prospects and operations; the degree to which Digirad's camera systems and related services and improvements to its camera systems or new service offerings will be accepted by physicians and hospitals some of whom may experience reliability issues or technical problems; the ability of Digirad to effectively market, sell and distribute its medical devices, and related services given its limited capabilities in these areas; Digirad's ability to manage risks relating to product liability, warranty claims, recalls, property damage and personal injury with respect to its imaging systems; and other risks detailed in Digirad's Securities and Exchange Commission filings, including its Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. Given these uncertainties, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and Digirad undertakes no obligation to revise or update this press release including the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.