Mr. David Gane reports

LED MEDICAL DIAGNOSTICS ANNOUNCES PROPOSED ISSUANCE OF SENIOR SECURED DEBENTURES

LED Medical Diagnostics Inc. is proposing a financing of $385,000 through the issuance of 13-per-cent senior secured debentures of LED Medical maturing 12 months from the closing date of the financing. The debentures will be issued to the Bloom Burton Healthcare Lending Trust, as part of a non-brokered private placement of units consisting of: (i) debentures in the aggregate principal amount of $385,000; and (ii) a total of 250,000 common shares of the corporation. The subscription price for the units will be $385,000.

The company intends to grant the common shares as a loan bonus in accordance with exchange Policy 5.1 of the TSX Venture Exchange. The issuance of the debentures and the common shares is subject to TSX-V acceptance.

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.