Tuesday, October 7, 2008 :: IMAGING DIAGNOSTIC SYSTEMS RECEIVES ITS FIRST ORDER FOR ITS CT LASER MAMMOGRAPHY SYSTEM FOR ISRAEL
IMAGING DIAGNOSTIC SYSTEMS RECEIVES ITS FIRST ORDER FOR ITS CT LASER MAMMOGRAPHY SYSTEM FOR ISRAEL


Fort Lauderdale, Florida, October 7, 2008—Imaging Diagnostic Systems, Inc., (OTCBB: IMDS) a pioneer in laser optical breast cancer imaging systems, announced today that its distributor The Oyamo group has placed an order for the first CT Laser Mammography System (CTLM®) for Jerusalem, Israel.

The Oyamo group obtained the import license from the Israel Ministry of Health which permitted the shipment and initiated the purchase order. The CTLM system will be placed in the prestigious hospital Hadassah, located in the heart of Jerusalem. The Hadassah University Medical Center is a tertiary care referral facility, known for pioneering new medical techniques. A premier teaching hospital and research center, the Medical Center is equipped with the most sophisticated diagnostic, treatment and research equipment enabling its world renowned faculty to furnish the most modern medical care in an atmosphere that embraces excellence.

Dr. Miri Sklair, Head of Hadassah’s Department of Mammography, will use the CTLM system in addition to Mammography and Ultrasound in detecting breast cancer.
Mr. Offer Hameiri, President of the Oyamo Group, quoted that he is “excited that a prestigious Medical Institution such as Hadassah, is going to be the pioneer for CTLM in Israel.”

About Imaging Diagnostic Systems, Inc.

Imaging Diagnostic Systems, Inc. has developed a revolutionary breast imaging device to aid in the detection and management of breast cancer. The CTLM system is a breast imaging system that utilizes patented continuous wave laser technology and computer algorithms to create 3-D images of the breast. The procedure is non-invasive, painless, and does not expose the patient to ionizing radiation or painful breast compression. CTLM is designed to be used in conjunction with mammography. It reveals information about blood distribution in the breast and may visualize the process of angiogenesis, which usually accompanies tumor growth.

Imaging Diagnostic Systems is currently collecting data from clinical sites for the future filing of an FDA Premarket Approval (PMA) for the Computed Tomography Laser Mammography system to be used as an adjunct to mammography. The FDA has determined that the Company's clinical study is a non-significant risk (NSR) investigational device study under 812.3(m) of the investigational device exemptions (IDE) regulation (21 CFR 812). The CTLM system is limited by United States Federal Law to investigational use only in the United States. The CTLM system has received other registrations including CE, CMDCAS Canadian License, China SFDA, UL, ISO 9001:2000, ISO 13485:2003 and FDA export certification.

For more information, visit our website: http://www.imds.com.

As contemplated by the provisions of the Safe Harbor section of the Private Securities Litigation Reform Act of 1995, this news release may contain forward-looking statements pertaining to future, anticipated, or projected plans, performances and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates or predictions of future results or events and there can be no assurance that actual results or events will not materially differ from expectations. Further information on potential factors that could affect Imaging Diagnostic Systems, Inc., is included in the Company's filings with the Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking stateme

Tuesday, August 5, 2008 :: CEO’S LETTER TO SHAREHOLDERS
CEO’S LETTER TO SHAREHOLDERS
OF IMAGING DIAGNOSTIC SYSTEMS, INC.

Fort Lauderdale, Florida, August 5, 2008—Imaging Diagnostic Systems, Inc., (OTCBB:IMDS)

Dear IDSI Shareholders,

As many of you know, I returned to the company 3 months ago to assume the position of Interim CEO and Chairman of the Board; we have received many phone calls from our shareholders asking essential questions about the Company’s direction and future. As my first priority, I have recently secured a tiered debenture for up to 2 million dollars to aid in the clinical collection of the PMA data and the submission of the PMA application.

Over the past two years, the Company had installed upgraded CTLM® systems, a new study protocol utilizing a new intended use at 10 various clinical sites throughout the United States. These sites are currently gathering cancer cases and non-cancer cases required to support the intended use hypothesis for the PMA application. Once the data required has been obtained it will be tested by independent radiologists, analyzed by our bio-statisticians and formalized into the PMA application for submission to the Food and Drug Administration (FDA). Developing an innovative medical imaging technology is a complicated and time consuming process. The CTLM® is a revolutionary diagnostic imaging device designed to detect breast cancer without radiation or compression. Since the development of the first CTLM® prototype, our engineering team has incorporated many improvements based on both new and evolving technologies in lasers, computer processors, image display, surface-mount electronics, and software. We believe we are on schedule to complete the data collection and submit the PMA application to the FDA in its entirety by the end of this year.

We have been fortunate enough to have a large number of longtime shareholders. They have experienced volumes of Company history and have been anticipating IDSI’s technologic achievements and sales breakthrough. Since commercializing the CTLM® in late 2002, we sold our first CTLM® system in January 2003. Since that sale, we sold 12 additional units. There are CTLM® systems sold or in clinical collaboration programs currently in China, Italy, Poland, Czech Republic, United Arab Emirates, and Malaysia. Our end users and clinical collaboration partners worldwide have completed more than 13,000 clinical scans. We have deposits for the purchase of CTLM® systems from our distributors in Hong Kong and Turkey; and our Director of Global Marketing is working with our distributors to bring their earnest leads to sale before the end of the year. We anticipate the sale of eight CTLM® systems before the end of the year in China, Italy, and the United Arab Emirates.

Our stock price has also faced challenges over the past several years as the Company evolved to establish itself on the market. IDSI is an equity funded Company. Since inception, substantially all of our necessary funding came from the proceeds of the sale of common stock, convertible preferred stock and convertible debentures. The convertible securities were all converted into common stock. In essence, our common stock is our currency and since January 2001 we have used a series of private equity credit agreements with Charlton Avenue, LLC, an institutional investor, to raise the capital necessary to fund the Company’s operations. The use of private equity credit agreements is dilutive as the investor sells our shares into the market.

Cost cutting initiatives and staff reductions were initiated in April by the time I was appointed Interim CEO and Chairman of the Board. I met with Executive Management and we made the decision to terminate our lease pursuant to the six-month notice provision and to lease a smaller facility. Our current facility is 24,000 sq/ft with a base rent of $24,000 per month plus insurance, taxes and maintenance, which we estimate to be $9,440 per month for a total monthly cost of $33,440. Our new facility in Fort Lauderdale is 9,870 sq/ft and our total monthly rent including common area maintenance expenses and sales tax for the first year is $10,244.23 per month. This represents a 69% savings in office rent expense and we anticipate that our electric bill will be reduced proportionally. We have placed a temporary halt on new projects and all efforts are directed to the PMA filing and international sales.

In a press release dated December 27, 2007, IDSI announced the retirement of its CEO and Director, Tim Hansen. Subsequent to Mr. Hansen’s retirement, we accepted the resignations of our three outside directors; Jay Bendis; Patrick Gorman; and Sherman Lazrus in accordance to a request initiated by our investment banker as a condition for additional funding.

As a co-founder of IDSI and its former Chairman of the Board and CEO, I fought to maintain and improve the Company’s financing and sales initiatives. I immediately arranged a new Sixth Private Equity Credit Agreement for $15 million over a three year period with Charlton Avenue LLC, who has provided substantially all of our necessary funding for the past eight years. Additionally, I began negotiating with other investment bankers and placement agents that could provide alternative financing. The management dynamics of the Company is changed. We have begun a more aggressive international sales and marketing program to appoint new distributors, terminate non-performing distributors and to offer introductory incentives to achieve sales. I traveled to China to visit our Representative Office and to interview our distributors to learn what support they need from the home office to sell CTLM® systems. I also visited our clinical reference site at Tianjin Cancer Hospital and was very pleased with the acceptance of our technology at this prestigious hospital. Our Senior Vice President just traveled to Italy to meet with our distributor and to visit end-users and our clinical collaboration site at Catholic University in Rome. We will outsource additional experts as needed to expedite the filing of the PMA.

During this process the company will continue its efforts to raise additional funds to offset using the equity line and diluting the stock further.
I want to personally thank all of the shareholders who have called me since April and want to assure you that I will do my best with the help of IDSI’s management to achieve our strategic goals.

Sincerely,

Linda B. Grable
Interim CEO and Chairman of the Board

Wednesday, April 23, 2008 :: Imaging Diagnostic Systems Accepts Resignations of Outside Directors
Imaging Diagnostic Systems Accepts Resignations of Outside Directors
Company Increases Focus on PMA Study

Fort Lauderdale, Florida, April 23, 2008—Imaging Diagnostic Systems, Inc., (OTCBB:IMDS) announced that on April 16, 2008, the Company received and accepted the resignations of its three outside directors Jay Bendis, Patrick Gorman, and Sherman Lazrus. These resignations were tendered to comply with a request by outside funding sources as a condition to such funding. In connection with their resignations, these directors received full vesting on the options for 200,000 shares each, which the Company granted in early 2008.

Linda B. Grable, a co-founder of IDSI and its former Chairman of the Board and CEO, who retired in April 2004, agreed to come out of retirement and now serves as the Company’s Chairman of the Board and interim CEO.
Allan Schwartz, Executive Vice President and CFO stated that “I am gratified that Linda has come out of retirement to serve IDSI as Chairman of the Board and Interim CEO. Her passion and experience will be a driving force to enable the Company to achieve its financial goals and to complete the PMA filing process.”
“As one of the original founders and a shareholder, I have a personal interest as well as a vested interest in IDSI’s success,” Grable commented. “I felt it was imperative for me to return to the company to help promote goodwill, bring value to the shareholders, and provide the avenue for the company to obtain the resources necessary to continue its operations and complete the PMA process. I am strongly committed to turning the original vision that I shared with my late husband Richard Grable, inventor of the CTLM system, into reality.”

On April 21th, 2008 the company entered into a new “Sixth Private Equity Credit Agreement with Charlton Avenue LLC providing a maximum commitment of $15,000,000 for a period of three years from the effective date of registration statement.(for detailed information see April 16th 2008 Form 8-K)

While the Company believes that it will be able to secure the additional funding necessary on commercially reasonable terms and follow the PMA timetable, there can be no assurance that the Company will be able to do so.

About Imaging Diagnostic Systems, Inc.
Imaging Diagnostic Systems, Inc. has developed a revolutionary new imaging device to aid in the detection and management of breast cancer. The CTLM® system is a breast imaging system that utilizes patented continuous wave laser technology and computer algorithms to create 3-D images of the breast. The procedure is non-invasive, painless, and does not expose the patient to ionizing radiation or painful breast compression. CT Laser Mammography (CTLM®) is designed to be used in conjunction with mammography. It reveals information about blood distribution in the breast and may visualize the process of angiogenesis, which usually accompanies tumor growth.

The FDA has determined that the Company’s clinical study is a non-significant risk (NSR) investigational device study under 812.3(m) of the investigational device exemptions (IDE) regulation (21 CFR 812). The Company is currently conducting clinical studies to collect the data necessary to support the FDA PMA application process. The CTLM system is limited by United States Federal Law to investigational use only in the United States.

For more information, visit our website: www.imds.com

As contemplated by the provisions of the Safe Harbor section of the Private Securities Litigation Reform Act of 1995, this news release may contain forward-looking statements pertaining to future, anticipated, or projected plans, performances and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates or predictions of future results or events and there can be no assurance that actual results or events will not materially differ from expectations. Further information on potential factors that could affect Imaging Diagnostic Systems, Inc., is included in the Company’s filings with the Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements.

Media Contact:
Deborah O’Brien
(954) 581-9800
obrien@imds.com

Wednesday, February 27, 2008 :: CT Laser Mammography Technology to be Featured at Interdisciplinary Breast Cancer Conference
CT Laser Mammography Technology to be Featured at Interdisciplinary Breast Cancer Conference


Fort Lauderdale, Florida, February 27, 2008—Imaging Diagnostic Systems, Inc., (OTCBB:IMDS) a pioneer in laser optical breast imaging systems, will exhibit CT Laser Mammography (CTLM) technology at the 18th Annual National Interdisciplinary Breast Cancer Conference, March 1-5, in Las Vegas, Nevada. IDSI will be located at booth #43.

“Attending the 18th Annual National Interdisciplinary Breast Cancer Conference is important for IDSI,” explained Deborah O’Brien, IDSI Senior Vice President. “It grants us the opportunity to meet with the medical professionals who will be working with CTLM in the future, to educate them on how our technology fits into an interdisciplinary approach to managing the treatment of breast cancer. We are able to meet with the physicians and technologists who are working with CTLM in our clinical trials and to allow them to discuss their experiences with us and with those who are unfamiliar with laser breast imaging.”

The conference is organized by the National Consortium of Breast Centers.
About Imaging Diagnostic Systems, Inc.
Imaging Diagnostic Systems, Inc. has developed a revolutionary new imaging device to aid in the detection and management of breast cancer. The CTLM® system is a breast imaging system that utilizes patented continuous wave laser technology and computer algorithms to create 3-D images of the breast. The procedure is non-invasive, painless, and does not expose the patient to ionizing radiation or painful breast compression. CT Laser Mammography (CTLM®) is designed to be used in conjunction with mammography. It reveals information about blood distribution in the breast and may visualize the process of angiogenesis, which usually accompanies tumor growth.

The FDA has determined that the Company’s clinical study is a non-significant risk (NSR) investigational device study under 812.3(m) of the investigational device exemptions (IDE) regulation (21 CFR 812). The CTLM system is limited by United States Federal Law to investigational use only in the United States.

For more information, visit our website: www.imds.com

As contemplated by the provisions of the Safe Harbor section of the Private Securities Litigation Reform Act of 1995, this news release may contain forward-looking statements pertaining to future, anticipated, or projected plans, performances and developments, as well as other statements relating to future operations. All such forward-looking statements are necessarily only estimates or predictions of future results or events and there can be no assurance that actual results or events will not materially differ from expectations. Further information on potential factors that could affect Imaging Diagnostic Systems, Inc., is included in the Company’s filings with the Securities and Exchange Commission. We expressly disclaim any intent or obligation to update any forward-looking statements.