Mr. David Gane reports

LED MEDICAL DIAGNOSTICS INC. REPORTS 2016 FIRST QUARTER RESULTS

LED Medical Diagnostics Inc. has released its financial results for the first quarter ended March 31, 2016. All amounts are in U.S. dollars and results are reported in accordance with international financial reporting standards. The company's results are presented in comparison with the first quarter ended March 31, 2015.

Financial highlights:

• Net revenue for the three months ended March 31, 2016, was $2,153,250, which is a decrease of 12 per cent from the three months ended March 31, 2015. This revenue decrease was largely due to timing of when imaging orders were received and could be shipped partially offset by higher demand for VELscope and VELscope Vx consumable sales.
• The net loss for the three months ended March 31, 2016, was $2,051,827 compared with the operating loss for the three months ended March 31, 2015, of $1,489,924. The increase of operating loss is mainly attributable to higher sales and marketing expenses than in 2015, higher stock option expenses resulting from the February grants, and the absence of gains on the fair value of Canadian warrants.
• The company had cash of $1,184,912. Cash flow used in operations was $684,826 during the three months ended March 31, 2016, compared with cash flow used in operations of $3,268,976 during the three months ended March 31, 2015. There were no inflows from financing for the three months ended March 31, 2016, as compared with $2,070,229 of cash inflows from the financing activities for the three months ended March 31, 2015.

Financial statements and management's discussion and analysis

Please see the interim condensed financial statements and related management's discussion and analysis for more details. The interim condensed financial statements for the three months ended March 31, 2016, 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 that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR and are also posted on the company's website.

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