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Digirad Corporation and University of Chicago Medical Center Sign Letter of Agreement
Date:4/29/2008

Leading Medical Institution Joins Digirad Centers of Influence To Deliver

Advanced Imaging Services

POWAY, Calif., April 29 /PRNewswire-FirstCall/ -- Digirad Corporation (Nasdaq: DRAD), a leading provider of medical diagnostic imaging systems and services to physicians' offices, hospitals and imaging centers, today announced the signing of a letter of agreement with the University of Chicago Medical Center (Medical Center) to deliver cardiac diagnostic services to Chicago-area physicians and patients through Digirad's centers of influence program, which now includes seven of the leading academic medical institutions in the United States.

Under the agreement, Digirad and the Medical Center will offer their respective services and expertise to primary-care physicians in the Chicago area who are seeking to expand their practices with in-office diagnostic imaging. Through its mobile imaging services division, Digirad Imaging Solutions (DIS), Digirad will bring state-of-the-art equipment and qualified, trained personnel into physicians' offices to perform imaging procedures. Patients' images will then be interpreted by Medical Center physicians and the results sent electronically to the referring physician.

Digirad Chief Executive Mark Casner said that the centers of influence model provides better care for patients, because it combines the family physician's patient-specific knowledge with the diagnostic expertise of specialists at leading medical institutions. As a result, the Company has added six new centers since launching the program less than a year ago with only one center that served as the "proof of concept." Casner also said that centers of influence are a key element in the Company's strategy for future growth.

The University of Chicago Medical Center, established in 1927, is one of the nation's leading academic medical institutions and is consistently recognized as a leading provider of complex medical care. It is the only Illinois hospital ever to make the U.S. News and World Report Honor Roll with eight clinical specialties: digestive disorders; cancer; endocrinology; neurology and neurosurgery; heart and heart surgery; kidney disease; geriatrics; and ear, nose and throat. It is ranked among the top 25 programs in the United States.

Stephen Archer M.D., section chief of cardiology at the Medical Center, stated: "We are committed to being one of the nation's top 10 cardiovascular training programs and training the next generation of leaders in academic cardiology. It is our responsibility and privilege to provide timely, compassionate care to patients suffering from, or with risk factors for, heart and vascular disease, not only in our own neighborhood but also internationally. Our partnership with Digirad will enable us to increase our presence in the community and offer a higher level of care."

Casner added: "We welcome the University of Chicago Medical Center as a partner in assisting local-area physicians with meeting key needs of their patients. The Medical Center is well respected and widely renowned, and has a staff of physician-faculty that is highly regarded in multiple specialties, including cardiology. This relationship promises to generate substantial benefits for patients, including the clearest and most accurate images available, readings by highly skilled specialists, and the comfort of knowing that their own doctors will remain closely involved in their care.

"With this service, physicians are also more effective at meeting patient scheduling needs while maintaining the primary patient relationship," Casner stated. "Patients are benefiting from the convenience of imaging in their own doctors' offices and the specialized expertise of the University of Chicago Medical Center for diagnostic interpretation."

About Digirad

Digirad Corporation provides diagnostic medical imaging systems and services to physicians' offices, hospitals and imaging centers for cardiac, vascular, and general imaging applications. Digirad's Cardius XPO line of nuclear imaging cameras use patented solid-state technology and unique multi (single, dual, triple) head design for superior performance and advanced features for sharper digital images, faster processing, compact size, lighter weight for portability, ability to handle patients up to 500 pounds, and improved patient comfort compared to standard nuclear cameras. Digirad's 2020tc general-purpose nuclear imager has a small footprint and may also be configured for fixed or mobile use to supplement primary imaging. Digirad's installed base of equipment exceeds 500 systems; in addition, a mobile fleet of more than 140 nuclear and ultrasound imaging systems is being used in 22 states, primarily in the eastern, midwestern and southwestern United States. For more information, please visit http://www.digirad.com. Digirad(R), Digirad Imaging Solutions(R), and Cardius(R) are registered trademarks of Digirad Corporation.

Forward-Looking Statements

Statements in this press release that are not a description of historical facts are forward looking statements. You can identify these statements by the fact that they do not relate strictly to historical or current facts and use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning. Examples of such forward looking statements include statements regarding performance under the agreement, medical and business benefits of the centers of influence model, future growth, and benefits of the partnership between the parties. Actual performance and benefits may differ materially from those set forth in this press release due to risks and uncertainties inherent in Digirad's business including, but not limited to, changes in economic and market conditions, technology, physicians' business conditions, work force, suppliers, business prospects, acceptance and use of Digirad's camera systems and services, reliability 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, 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: Company Contact:

Dan Matsui Mark Casner

Allen & Caron CEO

949-474-4300 858-726-1600

d.matsui@allencaron.com ir@digirad.com


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SOURCE Digirad Corporation
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