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Digirad Corporation Reports Financial Results for 2008 Second Quarter and Six Months
Date:7/24/2008

Record Revenues Driven by DIS Centers of Influence Strategy; Product Revenues Nearly Double First Quarter Levels; Improved Margins Expected in

Future Quarters

POWAY, Calif., July 24 /PRNewswire-FirstCall/ -- Digirad Corporation (Nasdaq: DRAD), a leading provider of medical diagnostic imaging systems and services to physicians' offices, hospitals and imaging centers, today reported financial results for second quarter and six months ended June 30, 2008.

Consolidated revenues rose to a record $19.9 million from $18.8 million in second-quarter 2007. Digirad Imaging Solutions' (DIS) revenue grew 7 percent to $14.2 million, from $13.3 million in second-quarter 2007, due to the addition of ultrasound services last year and growth in both nuclear and ultrasound services in areas surrounding the Company's centers of influence.

Although difficult market conditions persisted throughout the quarter, the Company believes it is gaining market share in its product business as evidenced by higher product revenue of $5.7 million, compared to $5.5 million in second-quarter 2007 and $4.4 million in first-quarter 2008. Camera sales increased to 20 cameras in second-quarter 2008, nearly double the 11 units sold in first-quarter 2008, and service and maintenance revenues were also higher compared to second-quarter 2007. Based on financial results for the first-half of 2008, DIS mobile imaging services now account for 74 percent of total revenues, compared to 70 percent for the same period in 2007.

Chief Executive Officer Mark Casner remarked, "We entered 2008 with specific goals to drive DIS revenue growth through our centers of influence strategy, increase the utilization of our imaging fleet with
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SOURCE Digirad Corporation
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