Dr. David Gane reports

LED MEDICAL DIAGNOSTICS AND DENMAT HOLDINGS EXTEND VELSCOPE(R) VX EXCLUSIVE INTERNATIONAL DISTRIBUTION AGREEMENT

LED Medical Diagnostics Inc. has renewed, as of Oct. 1, 2014, its exclusive international distribution agreement (outside North America) for three years with DenMat Holdings LLP for its VELscope Vx product line. This agreement requires minimum annual purchases of the VELscope Vx product line by DenMat and is subject to another three-year extension at the mutual agreement of both parties. LED Medical and DenMat have also agreed to assist Mectron SpA, the VELscope Vx distributor in Italy, to establish a VELscope Vx repair centre to service customers in Europe. Details of this arrangement will be set out in a separate contract.

"We are very pleased to be able to extend our exclusive international distribution agreement with DenMat," stated chief executive officer Dr. David Gane. "DenMat is creating significant traction for the VELscope in international markets and both LED and DenMat have high expectations for future growth for VELscope outside of North America. At the same time, we will continue to sell the VELscope Vx product line through DenMat and a number of other non-exclusive distributors in North America where it is estimated that current market penetration is in the range of 10 per cent."

The company manufactures and markets the VELscope Vx enhanced oral assessment system, the dental industry's leading adjunctive screening device for defining the extent of a wide range of oral mucosal abnormalities -- from viral, fungal and bacterial infections to cancer and precancer. To date, more than 25 million VELscope Vx exams have been performed by more than 12,000 dentists in 23 countries.

We seek Safe Harbor.