Mr. David Gane reports

LED MEDICAL DIAGNOSTICS ANNOUNCES PROPOSED ISSUANCE OF SENIOR SECURED DEBENTURES

LED Medical Diagnostics Inc. is proposing a financing of $1.1-million through the issuance of 10-per-cent senior secured debentures of the company, each in the amount of $10,000 and maturing 12 months from the closing date of the financing. The debentures will be issued to lenders including the Bloom Burton Healthcare Lending Trust as part of a non-brokered private placement of units, with each unit consisting of a debenture and 5,950 common share purchase warrants of the corporation. The subscription price for each unit will be $10,000.

The company intends to grant the warrants as a loan bonus in accordance with TSX Venture Exchange Policy 5.1 and each such warrant will entitle the holder thereof to acquire one common share in the capital of the company for 28 U.S. cents for a period of 12 months from the closing date. The issuance of the debentures and the warrants is subject to TSX-V approval.

The proceeds will be used by LED for general corporate purposes.

All securities issued in connection with the transaction will be subject to a hold period expiring four months after the closing date.