Digirad Corporation Signs Exclusive International Distribution Agreement With Dilon Diagnostics

SUWANEE, GA and NEWPORT NEWS, VA--(Marketwired - August 22, 2013) - Digirad Corporation (NASDAQ: DRAD), the leader in solid-state diagnostic imaging technology and services, and Dilon Diagnostics, the world leader in molecular breast imaging, today announced that they have signed an exclusive international distribution agreement for Dilon to distribute Digirad’s lines of nuclear imaging cameras including the ergo™, a large field-of-view general purpose imaging system, the Cardius® x.act, a triple-head cardiac dedicated SPECT imaging system with VCT Attenuation Correction, and the Cardius® XPO dedicated cardiac SPECT imaging systems line. The agreement covers distribution of Digirad products to most countries outside the United States. The signing of this agreement furthers the relationship that Digirad and Dilon have been building since the two companies signed a technology development agreement in mid-2010.

Digirad President and CEO Matthew G. Molchan said, “We are very pleased with this enhanced relationship with Dilon and the opportunity to further expand our product reach beyond the United States. We continue to believe that our nuclear imaging cameras, with their solid-state design and technology, are well suited to meet the needs of the international market and we are very excited to partner with Dilon to distribute our cameras around the world. We believe our products will be an excellent complement to the already extensive Dilon product line up.”

Dilon Diagnostics Chairman and CEO Robert G. Moussa said, “We are extremely pleased to expand our already successful partnership with Digirad and are excited to broaden our offering of nuclear imaging products in the international marketplace. With the addition of the Digirad cameras to the existing Dilon product portfolio, we now have the ability to offer a full spectrum of diagnostic imaging solutions to our international customers and to afford the excellent range of Digirad’s nuclear imaging products access to our broad international network of customers.”

About Dilon Diagnostics
Dilon Diagnostics, a brand of Dilon Technologies Inc., is bringing innovative new medical imaging products to market. Dilon’s cornerstone product, the Dilon 6800®, is a high-resolution, small field-of-view digital gamma camera, optimized for MBI/BSGI. MBI utilizes radiotracer uptake to detect the increased metabolic activity of breast lesions and therefore, is not affected by breast density. Both the Dilon 6800 and Acella systems provide high photon sensitivity; and Dilon’s GammaLoc® System is the only localization device on the market to enable molecular-guided breast biopsy. Many leading medical centers around the country are now offering MBI to their patients, including: Beth Israel and Cornell University Medical Centers in New York; Kaiser Permanente of Sacramento, CA and The George Washington University, Washington D.C. For more information on Dilon Diagnostics please visit www.dilon.com.

About Digirad Corporation
Digirad is one of the largest national providers of in-office nuclear cardiology imaging and ultrasound services to physician practices, hospitals and imaging centers, and also sells medical diagnostic imaging systems for nuclear cardiology and general nuclear medicine applications. For more information, please visit www.digirad.com. Digirad® 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 Company’s ability to deliver value to customers, the Company’s ability to grow and generate positive cash flow, the ability to execute on restructuring activities, and ability to successfully execute acquisitions. 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, reimbursement, radiopharmaceutical shortages, economic outlook, operational policy or structure, acceptance and use of Digirad’s camera systems and services, reliability, recalls, analysis of potential impairment and restructuring charges, the conclusion of our audit and other risks detailed in Digirad’s filings with the U.S. Securities and Exchange Commission, including the 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.