Mr. Jim Hutchens reports

IMAGIN MEDICAL CLOSES OVERSUBSCRIBED PRIVATE PLACEMENT

Imagin Medical Inc. has closed the second tranche of its non-brokered private placement, issuing 6,197,037 units at 22 cents per unit for proceeds of $1,363,648. This brings the total offering to 17,919,820 units for aggregate gross proceeds of $3,942,360.

The private placement was originally announced as a $3.5-million offering. The placement has been oversubscribed, resulting in the issuance of an additional 2,010,729 units for $442,360. Proceeds from the offering will be used for general working capital purposes, including advancing the development of the i/Blue imaging system, the regulatory approval process and continuing clinical trials.

Each unit of this private placement consists of one common share of the company and one common share purchase warrant, each warrant entitling the holder to acquire one additional common share of the company at a price of 38 cents within 24 months from the date of issue.

Total finders' fees will be paid in the form of cash in the amount of $210,256.27 and 1,117,110 finders' warrants (exercisable at 38 cents per share for 24 months). All securities issued will be subject to a four-month hold period.

The company also announced today that, pursuant to the company's stock option plan, options to purchase an aggregate of 2.75 million shares have been granted to certain directors, officers and consultants. The options are exercisable at 31 cents per share for a period of five years.

"The success of this private placement strengthens Imagin's financial position and our ability to drive the i/Blue technology to the marketplace," said Jim Hutchens, Imagin's president and chief executive officer. "We appreciate our investors' confidence."

About Imagin Medical Inc.

Imagin Medical is developing imaging solutions for minimally invasive surgical procedures where endoscopes are used. The company believes it will radically improve the way physicians detect cancer and view the surgical field. Imagin's initial target market is bladder cancer, a major cancer worldwide, the sixth most prevalent in the United States, and the most costly cancer to treat due to a greater than 50-per-cent recurrence rate. The ultrasensitive imaging technology is based upon improved optical designs and advanced light sensors.

We seek Safe Harbor.