DRAD Digirad Corporation

Digirad Corporation (NASDAQ: DRAD), a diversified health care company specializing in the early detection of disease to enhance quality of life, today announced that the Canadian nuclear reactor that supplies approximately 50 percent of the medical radiopharmaceuticals to North America is back in service, thereby alleviating significant supply disruptions that negatively impacted Digirad's DIS services business for the past 15 months with the most acute impact over the past four months.

Atomic Energy of Canada Ltd., the operator of the National Research Universal reactor in Chalk River, Ontario, announced August 17 that the reactor had been repaired. It was shut down in May 2009.

"This is very welcome news," said Digirad CEO Todd P. Clyde. "The Chalk River reactor is a critical link in the supply chain of medical radiopharmaceuticals we need for our nuclear imaging products and nuclear services. We believe having it back online will allow us and our physician customers to get back into a normal rhythm of service."

About Digirad Corporation Digirad markets medical diagnostic imaging systems and personnel and equipment leasing services for cardiac, vascular, and general imaging applications. Digirad's installed base of equipment exceeds 700 systems. Digirad also performs leasing services with its portable fleet of more than 145 nuclear and ultrasound imaging systems in 21 states. For more information, please visit www.digirad.com. Digirad®, Digirad Imaging Solutions®, and Cardius® are registered trademarks of Digirad Corporation.

Forward-Looking Statements This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding the efficacy of Digirad's centers of influence model, the status of the negotiation of the sale or closure of underperforming hub locations, and the ability to achieve positive cash flow and profitability, drive technology progress and improve services utilization to grow market share. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with changes in business conditions, technology, customers' business conditions, work force, suppliers, business prospects, economic outlook, operational policy or structure, acceptance and use of Digirad's camera systems and services, reliability, recalls, and other risks detailed in Digirad's filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not 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 the forward looking statements contained herein.

Investor Contact: Matt Clawson Allen & Caron 949-474-4300 Company Contact: Todd Clyde Chief Executive Officer 858-726-1600