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Digirad Corporation Reports Financial Results for First-Quarter 2008
Date:4/24/2008

s $1.4 million, or $(0.07) per share,

compared to net profit of $74,000, or $0.00 per share, in first-quarter

2007.

The Company's plan to stabilize growth of services revenues and reduce the effects of the economy and other market pressures includes not only continuing to drive the centers of influence strategy to augment direct sales and marketing to physicians but also a broader range of imaging services and, therefore, revenue sources. During first quarter Digirad began a pilot program to evaluate a new diagnostic ultrasound procedure to complement its current imaging services.

Physicians enrolled with DIS who are participating in the pilot program are finding that additional vascular imaging can enhance patient care. All primary-care physicians using DIS ultrasound services may soon be able to offer this new service to their patients.

Casner stated: "We will continue to pilot this program during the next few quarters and, if indications remain positive, anticipate rolling out this new service to the larger number of our DIS physicians who lease our ultrasound imaging services. Due to the way the new procedure easily fits into our current process, we would also be able to leverage our existing ultrasound infrastructure."

Other First-Quarter 2008 Updates:

-- DIS fleet upgrades: seven multi-head Cardius XPO cameras were added to

Digirad's mobile imaging services fleet during the quarter; 82 percent

of DIS' mobile fleet, or 68 systems, have been upgraded. The upgrades

of the entire fleet are expected to be completed during second-quarter

2008.

-- Asset utilization was 64 percent of 143 systems (nuclear and

ultrasound), compared to 58 percent of 82 systems (all nuclear) for

first-quarter 2007.

-- Cash and equivalents and securities available for sale on

March 31, 2008, totaled $26.4 million, compared to $31.7 million on

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SOURCE Digirad Corporation
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