Mr. David Gane reports

LED MEDICAL DIAGNOSTICS ANNOUNCES PROPOSED ISSUANCE OF SENIOR SECURED DEBENTURES

LED Medical Diagnostics Inc. is proposing a financing through the issuance of: (i) 12-per-cent senior secured debentures of the company in the aggregate amount of $150,000, maturing 24 months from the closing date of the financing; and (ii) 12-per-cent senior secured debentures of LED Dental Inc., a wholly owned direct subsidiary of the company, in the aggregate amount of $650,000, maturing 24 months from the closing date. The debentures will be issued to the Bloom Burton Healthcare Lending Trust II as part of a non-brokered private placement. The LED Medical debentures will be issued as units consisting of: (i) LED Medical debentures in the aggregate principal amount of $150,000; and (ii) a total of 320,000 common shares of the company. The subscription price for the units will be $150,000. The company intends to grant a total of 1.38 million common shares of the company to Bloom Burton Healthcare Lending Trust II as a loan bonus in connection with the issuance of the LED Dental debentures.

The company intends to grant the common shares issued in connection with each debenture 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 Venture Exchange acceptance.

The proceeds will be used by LED for working capital and general corporate purposes.

All securities, other than the LED Dental debentures, issued in connection with the transaction will be subject to a hold period expiring four months and one day after the closing date. The LED Dental debentures will be subject to a hold period expiring four months and one day after the later of: (i) the closing date; and (ii) the date that LED Dental becomes a reporting issuer under Canadian Securities laws in any province or territory of Canada.

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.