DIO Diomed Holdings,

Diomed Holdings, Inc. (AMEX: DIO), a leading developer and marketer of minimally invasive medical technologies, including its patented EndoVenous Laser Treatment (EVLT(R)) for varicose veins, today announced the formation of a strategic marketing and sales alliance for the US vein care market with BSN-JOBST, Inc., the manufacturer of JOBST medical compression garments. JOBST is the market leader and number one physician recommended brand of medical compression garments in the US. Medical compression therapy is an important modality used for the care and management of venous and lymphatic disease. Compression therapy is frequently recommended by physicians prior to EndoVenous Laser Treatment of varicose veins and, following Endovenous Laser Treatment, patients are required to wear graduated compression stockings for a week to ten days. Under the terms of the multi-year agreement, the two companies will provide joint training activities for physicians, conduct sales force cross-training, and implement a lead sharing program and other co-marketing activities. The agreement will result in sales collaboration and co-marketing activities in the United States to advance the sales of each company's respective products into the rapidly growing vein care marketplace. "This agreement combines the strengths of two market leaders," stated Jake Newman, Director of Marketing at BSN-JOBST, Inc. "Since Conrad Jobst introduced our first product over 50 years ago, we have been focused upon improving the quality of life for those who suffer from venous disease. With Diomed's leadership position in the endovenous laser treatment of varicose veins, we believe the synergies between our companies will benefit patients and physicians alike." "We are pleased to be joining JOBST in this important marketing alliance," stated James A. Wylie, Diomed's President and Chief Executive Officer. "JOBST is the #1 physician recommended brand of medical compression stockings, backed by over 50 years of experience and an ideal partner in the management of venous disease. In the last year, Diomed has launched the DELTA Laser system, introduced the SpotLight(TM) sheath, obtained distribution rights for the revolutionary VeinViewer(TM) by Luminetx, and established a marketing and education alliance with Sonosite, the leader in hand held ultrasound systems. This agreement with Jobst provides yet another solid example of Diomed's commitment to providing its customers with comprehensive solutions for treating vein disease." About Diomed Diomed develops and commercializes minimal and micro-invasive medical procedures that use its proprietary laser technologies and disposable products. Diomed's EVLT(R) laser vein ablation procedure is used in varicose vein treatments. Diomed also provides photodynamic therapy (PDT) for use in cancer treatments, and dental and general surgical applications. The EVLT(R) procedure and the Company's related products were cleared by the United States FDA in January of 2002. Along with lasers and single-use procedure kits for its EVLT(R) laser vein treatment, the Company provides its customers with state of the art physician training and practice development support. Additional information is available on the Company's website: www.evlt.com. EVLT(R) is a registered trademark of Diomed Inc., Andover, MA. Safe Harbor Safe Harbor statements under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with trends in the products markets, reliance on third party distributors in various countries outside the United States, reoccurring orders under OEM contracts, market acceptance risks, technical development risks and other risk factors. These statements relate to our future plans, objectives, expectations and intentions. These statements may be identified by the use of words such as "may," "will," "should," "potential," "expects," "anticipates," "intends," "plans," "believes" and similar expressions. These statements are based on our current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties. Our actual results could differ materially from those discussed in these statements. Our Annual Report on Form SEC 10-KSB/A (the "Annual Report") contains a discussion of certain of the risks and uncertainties that affect our business. We refer you to the "Risk Factors" on pages 23 through 38 of the Annual Report for a discussion of certain risks, including those relating to our business as a medical device company without a significant operating record and with operating losses, our risks relating to our commercialization of our current and future products and applications and risks relating to our common stock and its market value. Diomed disclaims any obligation or duty to update or correct any of its forward-looking statements.