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Manhattan Diagnostic Radiology First in Manhattan to Offer Positron Emission Mammography (PEM) scanner from Naviscan in the Fight against Breast Cancer

Leading Edge Technology Provides Unprecedented Visualization of Small Body Parts

Manhattan, NY - July 29, 2008 - Manhattan Diagnostic Radiology announced today that it will be the first imaging facility in Manhattan to offer Positron Emission Mammography (PEM) in the fight against breast cancer. This installation will provide Manhattan Diagnostic Radiology an increased ability to image and diagnose early stage breast cancers, positively impacting cancer management. For example,in a recent study presented at the Society of Nuclear Medicine, PEM demonstrated 91% sensitivity in detecting ductal carcinoma in situ (DCIS) compared to 83% with MRI, with better sensitivity in cancers measuring less than 5 millimeters in size.

“We recently received prestigious designation as a Breast Imaging Center of Excellence from the American College of Radiology acknowledging our commitment to providing the highest level of breast care to our patients,” said Craig H. Sherman, M.D., Senior Partner and Director of PET/CT imaging at Manhattan Diagnostic Radiology. “We have always sought out the very best in diagnostic imaging technology, and PEM will be the latest in a long list of firsts for our center. We expect that PEM will prove indispensable to effective breast cancer management for both our referring physicians and our patient population.”

“Manhattan Diagnostic Radiology is widely respected for its superior diagnostic skills and comprehensive services. We are excited to play a part in what they do best,” said Paul J. Mirabella, Chairman and CEO of Naviscan.

The PEM Flex scanner from Naviscan uses PET technology to produce high-resolution tomographic images of 1.5 millimeters, allowing physicians to visualize breast tumors about the size of a grain of rice. The scanner is the size of a mammography unit and consists of two high resolution detector heads which are placed in close proximity to the breast. Compared to higher force compression necessary for mammographythe PEM Flex scanner uses gentle breast immobilization which is comforting to patients.

About Naviscan, Inc.

Naviscan®, founded in 1995, develops and markets compact, high-resolution PET scanners intended to provide organ-specific molecular imaging, guide radiological and surgical procedures and advance new clinical therapies. The PEM Flex™ Solo II is currently installed and available in breast centers and imaging centers throughout the U.S. PEM Flex is also utilized in clinical research studies, funded in part by the National Institutes of Health. The Company is headquartered in San Diego, California and is the first company to obtain FDA clearance of a high-resolution PET scanner designed to image small body parts. For more information, visit www.naviscan.com