The patent for the CTLM® was issued in December 1997 under Patent Number 5,692,511 (the "Patent"). The Patent has a total of 4 independent claims and 24 subordinate claims. The independent claims serve to provide an overall outline of the disclosure of the invention. The subordinate claims provide additional information to identify pertinent details of the invention as they relate to the respective specific independent claim. We own the rights to the Patent for its 17-year life pursuant to an exclusive patent licensing agreement with the late Richard Grable, who invented the CTLM® and served as our Chief Executive Officer and whose estate has owned the Patent since his death in August 2001. As of the date of this report, we own 17 patents and have nine additional United States patents pending with regard to optical tomography, many of which are based on the original CTLM® technology. We also have eight International patents and have 28 International patents pending.

In September 1999, we were issued a patent for a laser imaging apparatus using biomedical markers that bind to cancer cells. This patent was issued under Patent Number 5,952,664 and is owned by the Company. The biomedical marker we are currently testing is a fluorescent marker. We plan to continue studying other biomedical markers in conjunction with major pharmaceutical companies as a potential advanced diagnostic feature to be used with our CTLM® system. The CTLM® in combination with the fluorescent feature has the potential to be used with photodynamic therapy (PDT) to aid in the treatment of breast cancer.

In February 2000, we were issued a patent for: "Device for Determining the Perimeter of the Surface of an Object Being Scanned and for Limiting Reflection from the Object Surface". The patent was issued under Patent Number 6,029,077 and is owned by the Company. This particular patent covers the technique for determining the perimeter of the breast, which simplifies the algorithms necessary to produce the image.

In March 2000, we were issued a patent for: "Apparatus and Method for Determining the Perimeter of the Surface of an Object Being Scanned". The patent was issued under Patent Number 6,044,288, and is owned by the Company. This additional patent covers an optical technique to determine the perimeter of a scanned breast. The Company's patent 6,029,077 described in the previous paragraph covers a different technique to perform the same measurement. Together, these two patents protect the practical techniques that can be used to acquire this information.

In August 2000, we were issued a patent for: "Detector Array for Use in a Laser Imaging Apparatus". The patent was issued under Patent Number 6,100,520 and is owned by the Company. This patent describes the several different variations that can be used while scanning the breast without any contact between the breast and the optical components. Unlike the conventional method, this unique feature allows the CTLM® to scan the breast without the use of breast compression.

In October 2000, we were issued a patent for: "Method of Reconstructing an Image Being Scanned". The patent was issued under Patent Number 6,130,958 and is owned by the Company. This patent describes the algorithms used to reconstruct images from data acquired from CTLM® scans.

In December 2000, we were issued a patent for: "Detector Array With Variable Gain Amplifiers For Use In A Laser Imaging Apparatus". The patent was issued under Patent Number 6,150,649 and is owned by the Company. This patent describes the proprietary electronics used in the CTLM® detector array.

In February 2001, Mr. Grable was issued a patent for "Diagnostic Tomographic Laser Imaging Apparatus". This patent was issued for his proprietary scanning bed, a unique feature of the CTLM®, and was issued as U.S. Patent Number 6,195,580. The patent allows for a fixed horizontal platform including a top surface with an opening through which the female breast is vertically pendent using a laser beam for the detection of breast abnormalities. The patent should prevent others in the industry from utilizing a scanning bed with a laser breast imaging system that requires the patient to lie in the prone position. See "Patent Licensing Agreement".

In April 2001, we were issued a patent for: "Detector Array for Use in a Laser Imaging Apparatus". The patent was issued under Patent No. 6,211,512 and is owned by the Company. The patent allows for several different optics variations while scanning the breast without contact between the breast and the optical components. This feature allows the CTLM® to scan the breast without the use of breast compression.

In January 2002, we announced that we were issued a patent for "Detector Array With Variable Gain Amplifiers for Use in a Laser Imaging Apparatus," as U.S. Patent No. 6,331,700. This patent protects some of the non-obvious, but essential, design aspects of an optical CT scanner. This patent addresses the solution to the problem of accommodating a huge dynamic range of light intensities emitted from the breast.

In February 2002, we were issued a patent for "Time-Resolved Breast Imaging Device," as U.S. Patent No. 6,339,216. This patent protects the key electronics of a time-resolved optical CT scanner. It addresses the solution to the problem of simultaneously accommodating a large dynamic range of light intensities emitted from the breast while achieving the necessary temporal resolution.

In May 2003, we were issued a patent for "Medical Optical Imaging Scanner Using Multiple Wavelength Simultaneous Data Acquisition for Breast Imaging," as U.S. Patent No. 6,571,116.

In January 2004, we announced that we were issued a patent for "PHANTOM FOR OPTICAL AND MAGNETIC RESONANCE IMAGING QUALITY CONTROL," as U.S. Patent No. 6,675,035. This invention relates to phantoms for use in optical and magnetic resonance imaging that emulates the optical characteristics of breast tissue, that resembles the breast in shape and size, as an integral component of a quality assurance protocol to verify the performance of the medical imaging apparatus being evaluated.

In January 2004, we announced that we were issued a patent for "METHOD FOR IMPROVING THE ACCURACY OF DATA OBTAINED IN A LASER IMAGING APPARATUS," as U.S. Patent No. 6,681,130. This method improves the accuracy of data obtained using a diagnostic medical imaging apparatus that employs a near-infrared laser and array of detectors with variable gain amplifiers that can accommodate the wide dynamic range of signals available from the detectors.

In February 2004, we announced that we were issued a patent for "LASER IMAGING APPARATUS USING BIOMEDICAL MARKERS THAT BIND TO CANCER CELLS" as U.S. Patent No. 6,693,287. This patent protects the proprietary method of collecting data while using "biomedical" markers that bind to cancer cells during a CT laser scan to provide a positive identification of the cancer area, to selectively activate the Photo Dynamic Therapy (PDT) drug to destroy the cancer.

In April 2004, we announced that we were granted a Canadian Patent for "LASER IMAGING APPARATUS USING BIOMEDICAL MARKERS THAT BIND TO CANCER CELLS" as Canadian Patent No. 2,373,299. This patent broadly covers the optical imaging of fluorescent compounds.

In May 2004, we announced that we were issued a patent for "MEDICAL OPTICAL IMAGING SCANNER USING MULTIPLE WAVELENGTH SIMULTANEOUS DATA ACQUISITIONS FOR BREAST IMAGING" as Patent No. 6,738,658. This patent protects the concept of differential reconstruction: reconstructing the difference in data before and after an injection of a contrast agent, such as a fluorescent compound.

In June 2004, we announced that we were granted a Chinese Patent for "DIAGNOSTIC TOMOGRAPHIC LASER IMAGING APPARATUS" as Chinese Patent No. ZL95197940X. The patent was issued in the name of Richard J. Grable for a period of 20 years from the date of filing until July 10, 2015 and is exclusively licensed to Imaging Diagnostic Systems, Inc. See "Patent Licensing Agreement".

In August 2004, we announced that we were granted a European Patent for "APPARATUS FOR DETERMINING THE PERIMETER OF THE SURFACE OF AN OBJECT BEING SCANNED" as European Patent No. 1003419. This is the European equivalent of U.S. Patent No. 6,044,288, which protects a key element in the optical technique used to determine the perimeter of an object being scanned.

We intend to file for patents on products, including the CTLM®, for which we believe the cost of obtaining a patent is economically reasonable in relation to the expected protection obtained.