Imaging Diagnostic Systems Announces Sale of Second CTLM® System in Malaysia

Imaging Diagnostic Systems, Inc., (OTCBB:IMDS) a pioneer in laser optical breast imaging systems, announced today that it has received a deposit for its second CTLM® system for Malaysia and a purchase order for a system to be installed in Indonesia. The systems will be delivered in January 2010; installation and training will commence immediately upon delivery.

The orders were placed through Jainsons PTY LTD., a distribution company based in Perth, Australia that serves as IDSI’s distributor for the CTLM system in Australia and Southeast Asia. Established in 1996 to distribute medical equipment in Southeast Asia, Jainsons represents U.S.-based medical companies that have developed innovative medical products and laser technologies.

“With a second CTLM system in Malaysia and one in Indonesia, we will be able to bring laser breast imaging technology to the women in Southeast Asia, especially for younger women or those with dense breast tissue,” stated Dr. Mukesh Jain, Jainsons’ Chairman and CEO.

Dr. Jain, who has been personally involved in the distribution of medical products for over twenty years, has developed a strong network and established key relationships with principals of medical companies throughout his career, as well as with agents throughout the region.

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 Company is currently undergoing the clinical studies required for the Premarket approval application. 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.