Mr. Jim Hutchens reports

IMAGIN MEDICAL ARRANGES PRIVATE PLACEMENT OF CONVERTIBLE NOTES

Imagin Medical Inc. will issue on a private placement basis $100,000 aggregate principal amount unsecured convertible notes at a price of $1,000 of principal amount per note.

The notes will have the following terms:

1. Each note shall be for a term of 12 months from the date of closing (subject to the prepayment and conversion terms hereinafter set forth).
2. The notes will bear interest from the date of closing at the rate of 10.0 per cent per annum calculated annually and payable on maturity.
3. The subscribers may at any time following the date of closing elect to convert any portion of the note, plus accrued interest to the date of conversion, into units of the issuer at the conversion price of nine cents per unit; each unit consisting of one share and one warrant exercisable for 12 months at 12 cents per share.
4. At maturity, all unpaid principal and interest under the notes shall be repaid in full, at the election of the issuer, through one of the following:
   1. In cash;
   2. In units priced at nine cents per unit;
   3. Any combination thereof.

The company's president and two directors (the insiders) will invest $60,000 in this financing. Finders' fees may be paid, in accordance with Canadian Securities Exchange policies. Closing of the placement will be subject to making applicable filings with the CSE.

Proceeds from the placement will be used for general working capital purposes, including advancing the development of imaging solutions for the early detection of cancer through the use of endoscopes.

About Imagin Medical Inc.

Imagin Medical is developing imaging solutions for the early detection of cancer through the use of endoscopes. The company believes it will radically improve the way physicians detect cancer. Imagin's initial target market is bladder cancer, a major cancer worldwide, the sixth most prevalent in the United States and the most costly cancer to treat due to a greater-than-50-per-cent recurrence rate. Developed at the Lawrence Livermore National Laboratory, this advanced, ultrasensitive imaging technology is based upon improved optical designs and advanced light sensors.

We seek Safe Harbor.