Mr. Chris Koch reports

LED MEDICAL DIAGNOSTICS ANNOUNCES COMPLETION OF OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT TOTALING CDN$2.65 MILLION

LED Medical Diagnostics Inc. has completed a previously announced non-brokered private placement with an oversubscribed total of 10,605,000 units at an issue price of 25 cents per unit for total gross proceeds of approximately $2.65-million. Each unit is composed of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire one common share at an exercise price of 25 U.S. cents for a period of 24 months. All of the securities issued in connection with the private placement will be subject to a restricted period that expires four months after the issuance date.

The proceeds will be used by LED Medical to support product development related to VELscope Vx; to replenish imaging product inventory, including an initial stocking order related to the recent Canadian exclusive distribution agreement with Ray Co.; and for other working capital purposes.

Insiders, including officers, directors and employees, purchased a total of 2,245,000 units in the offering.

In connection with the private placement, LED has agreed to pay cash commissions of $22,000 and to issue 64,000 finder's warrants to arm's-length finders. Each finder's warrant is non-transferable and exercisable into one common share at an exercise price of 25 U.S. cents for a period of 24 months.

The private placement, including payment of finder's fees, is subject to final approval of the TSX Venture Exchange. The participation by insiders in the private placement is considered to be a related-party transaction under the policies of the TSX Venture Exchange. The transaction is exempt from the formal valuation and minority shareholder approval requirements, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25 per cent of LED's market capitalization.

We seek Safe Harbor.