Mr. David Gane reports

LED MEDICAL DIAGNOSTICS INC. REPORTS 2015 FOURTH QUARTER AND FULL YEAR RESULTS

LED Medical Diagnostics Inc. has released its financial results for the fourth quarter and full year ended Dec. 31, 2015, in U.S. dollars and in accordance with international financial reporting standards. The company's results are presented in comparison with the fourth quarter and full year ended Dec. 31, 2014. All balances are expressed in U.S. dollars unless otherwise stated.

Financial highlights:

LED Medical is pleased to announce revenue growth of 47 per cent for the fiscal year ended Dec. 31, 2015, with total revenue of $13.1-million as compared with the prior-fiscal-year revenue of $9.0-million, and revenues for the three months ended Dec. 31, 2015, of $5.6-million, an increase of 20 per cent from the three months ended Dec. 31, 2014.

Three-month comparative results

The company reported revenue of $5.6-million for the three months ended Dec. 31, 2015, as compared with $4.7-million for the three months ended Dec. 31, 2014. Net loss was $1.1-million for the three months ended Dec. 31, 2015, as compared with a net loss of $513,000 for the three months ended Dec. 31, 2014. The company's calculated gross margin was 28 per cent for the three months ended Dec. 31, 2015, as compared with 31 per cent in the three months ended Dec. 31, 2014. Total operating expenses for the three months ended Dec. 31, 2015, were $2.6-million as compared with $2.3-million for the three months ended Dec. 31, 2014.

Twelve-month comparative results

The company reported revenue of $13.1-million for the year ended Dec. 31, 2015, as compared with $9.0-million for the year ended Dec. 31, 2014. Net loss was $5.2-million for the year ended Dec. 31, 2015, as compared with a net loss of $6.2-million for the year ended Dec. 31, 2014. Gross margin was 27 per cent for the year ended Dec. 31, 2015, a decrease from 39 per cent in the year ended Dec. 31, 2014. Total operating expenses for the year ended Dec. 31, 2015, were $8.8-million as compared with $9.2-million for the year ended Dec. 31, 2014.

Business highlights, financial statements, and management's discussion and analysis

Please see the audited consolidated financial statements and related management's discussion and analysis for more details. The audited consolidated financial statements for the year ended Dec. 31, 2015, and related MD&A have been reviewed and approved by the company's audit committee and board of directors. The company has prepared this truncated news release to alert investors to its results, and a more detailed explanation and analysis are readily available in the MD&A. These reports have been filed on SEDAR and have also been posted to the company's website.

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