July 8, 2002

Press Release: Canadian ISO' s Merge

Horizon Medical Services Ltd. and DigiRay Inc. (both of Mississauga, Ontario, Canada), today are pleased to announce the merger of the two companies. Both companies are independent service organizations (ISO) and, while being competitors, also complement one another. Horizon Medical has been involved in CT, bone densitometry and diagnostic imaging equipment service nationwide in Canada. DigiRay is also involved in imaging equipment service in addition to sales of new and refurbished imaging equipment.

While financial details have not been disclosed, the merger will have an accelerated time frame. According to a spokesperson representing both companies, management of both companies will be completely integrated, with no immediate impact to the infrastructure, making it the largest ISO in Canada.

This transaction accelerates the growth process more than either could have accomplished individually. The synergy between both companies lends itself to the creation of a larger, stronger and more profitable organization. It will also create a stronger service organization, making the customers the real winners in this deal.. according to the spokesperson.

Please do not hesitate to contact: Larry Riley at (905) 673-1442 or Ivan Cerny at (416) 674-9955, should you have any questions or comments.

Regards from all of us at Horizon Medical Services Ltd. and DigiRay Inc.