Mr. David Gane reports

LED MEDICAL DIAGNOSTICS CLARIFIES ANNOUNCEMENT OF NON-BINDING LETTER OF INTENT TO ACQUIRE TECHNOLOGY COMPANY TO ACCELERATE GROWTH

LED Medical Diagnostics Inc. is clarifying its announcement earlier today that the company has entered into a non-binding letter of intent (LOI) to acquire 100 per cent of a growing and profitable technology company that would complement LED's existing business and provide a platform to assist LED in achieving its strategic, long-term business objectives.

The acquisition is at arm's length and would not represent a reverse takeover of LED Medical or a fundamental acquisition under TSX Venture Exchange policies, and no change of control of LED Medical will result from the acquisition. The revenues and assets of the target represent less than 100 per cent of LED Medical's existing revenues and assets. The financing structure of the transaction is to be determined following completion of due diligence. Upon negotiation of the terms of the acquisition, the company will disclose the terms of the acquisition by way of further press release.

The company has engaged Bloom Burton & Co. Ltd., a Toronto-based, health-care-specialized investment bank, to act as financial adviser to the company on the proposed transaction.

Completion of the proposed transaction is subject to a number of conditions, including the negotiation and settlement of definitive terms for the proposed transaction, and the entering into of a definitive share purchase agreement among the parties, completion of due diligence, receipt of board approval, receipt of final approval of the TSX Venture Exchange, and the receipt of certain other customary consents. There can be no assurance that the proposed transaction will be completed.

We seek Safe Harbor.