Digirad Terminates Lease Agreement for Former Headquarters

Digirad Corporation DRAD, the leader in providing diagnostic imaging services and technology on an as needed, where needed, and when needed basis, announced today it favorably negotiated an exit from the lease of the former corporate headquarters in Poway, CA. In addition, the Company announced that management has identified much smaller alternative facilities in the San Diego area to house its ongoing camera and camera support services operations. Digirad President and CEO Matthew G. Molchan noted that the Company no longer needed the large facility and had found a solution to terminate the lease that benefited Digirad and the landlord. As part of its new, expanding imaging services-oriented business model, the Digirad headquarters moved to the Atlanta area in mid-2013. "Based on our strategic decision to focus on growing our Digirad Imaging Solutions business, outsourcing our manufacturing operations and moving our headquarters to Atlanta, we no longer needed the large manufacturing facility in Poway," Molchan said. "This is another important step in our ongoing effort to find savings in our new business model and right-size our business going forward. It will obviously benefit us in terms of cash flow and profits on a go-forward basis and it places our camera and camera support services operation in an appropriately-sized facility." About Digirad Corporation Digirad is one of the largest national providers of in-office nuclear cardiology imaging and ultrasound services to physician practices, hospitals and imaging centers, and also sells medical diagnostic imaging systems for nuclear cardiology and general nuclear medicine applications. For more information, please visit www.digirad.com. Digirad® and Cardius® are registered trademarks of Digirad Corporation.