Mr. David Gane reports

LED MEDICAL DIAGNOSTICS ANNOUNCES PROPOSED ISSUANCE OF SENIOR SECURED DEBENTURES

LED Medical Diagnostics Inc. is proposing a financing of $500,000 through the issuance of 12-per-cent senior secured debentures of the company maturing 24 months from the closing date of the financing. The debentures will be issued to Bloom Burton Healthcare Lending Trust II as part of a non-brokered private placement of units consisting of: (i) debentures in the aggregate principal amount of $500,000, and (ii) a total of 750,000 common shares of the corporation. The subscription price for the units will be $500,000.

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 working capital and general corporate purposes.

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

About LED Medical Diagnostics

LED Medical Diagnostics, through its wholly owned subsidiaries, LED Dental Inc. and LED Dental Ltd., provides dentists and oral health specialists with advanced diagnostic imaging products and software, in addition to the award-winning VELscope Vx tissue fluorescence visualization technology.