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 Michael J. Keenan has been named President of the Company's Digirad Imaging Solutions (DIS) leasing services subsidiary. Keenan assumes his new responsibilities on March 31, 2006 from Digirad's CEO Mark Casner, who will relinquish the additional title upon Mike's arrival. "In addition to implementing our business strategy and operating plan to take advantage of our opportunities in both physician-based imaging services (DIS) and the nuclear cardiology camera market, my primary responsibility as CEO is to assemble a management team that will allow Digirad to achieve its growth potential. The appointment of Michael Keenan as President of DIS is an important step toward achieving this objective. With more than 24 years of senior-level operations and sales management experience in the service divisions at major national healthcare companies, Mike's demonstrated record of success in driving improved performance makes him ideally suited to take over the reins at DIS," Casner said. "Mike joins other recent senior and mid-level additions in our corporate, sales and marketing, and operations groups in what I believe is a highly capable management team with the skills, experience and dedication to achieve our goals for growth and profitability," Casner added. Keenan, 48, joins Digirad after serving since 1994 in a succession of senior executive positions with Apria Healthcare Group Inc., a $1.5 billion provider of home healthcare products and services headquartered in Lake Forest, California. Most recently, Keenan was Executive Vice President, Business Operations, where he was instrumental in the development and implementation of national platforms for the standardization of customer service and accounts receivable processes, acquisition procurement and integration management, as well as field sales and operations support. Earlier, Keenan was Regional Sales Manager with Home Nutritional Services, New Jersey, the nation's third largest home infusion company. Keenan earned a B.A. in Finance/Healthcare Administration from Whitworth College, Spokane, Washington in 1989, and an R.N. from Niagara College, New York, in 1980. 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), Cardius(R) and Digirad Imaging Solutions(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 improved or continued performance of our DIS and product businesses or our expectations of Messrs. Keenan's success in his new role with the company. 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, services, customers, work force, and suppliers; the introduction of our Cardius-3M system and the related upgrade of our DIS fleet; our overall business prospects and operations; the degree to which Digirad's Cardius-3M system and related services 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 Cardius-3M system, and related services given its limited capabilities in these areas; the degree to which recent changes in customer profiles may reduce the number of days service initiated per new contract or otherwise impact Digirad's business; Digirad's ability to retain and attract key executives, qualified managers, engineers and imaging technologists; Digirad's ability to manage risks relating to product liability, warranty claims, recalls, property damage and personal injury with respect to its imaging systems, including the Cardius-3M system; 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.