Diomed Announces Shipment of First VeinViewer Imaging Systems

Diomed Holdings, Inc. (AMEX: DIO), a leading developer
and marketer of minimally invasive medical technologies, including its
patented EndoVenous Laser Treatment(R) (EVLT) for varicose veins,
today announced the market introduction of the VeinViewer(TM) Imaging
System for use in sclerotherapy, phlebectomy and varicose vein
treatment.
   "Last week we commenced commercial shipment of the VeinViewer(TM)
and we are thrilled to now be in a position to fill the growing list
of orders in this much anticipated product introduction," stated James
A. Wylie, Chief Executive Officer of Diomed Holdings, Inc. "The
VeinViewer has generated a great deal of excitement and intense
interest over the past several months and we look forward to its
initial impact during the second quarter."
   The VeinViewer(TM), manufactured by Luminetx Corporation and
cleared by the FDA in 2004, is a breakthrough patented biomedical
imaging system which utilizes near-infrared light to illuminate, on a
real-time basis, subcutaneous veins to an average depth of 8mm and
projects their location on the surface of the skin with an accuracy of
0.06 mm. VeinViewer(TM) is a unique guidance tool allowing physicians
to visualize the exact location and orientation of the patient's
veins, thereby providing more precise sclerotherapy and phlebectomy
procedures through increased accuracy in vein targeting. Unlike other
methods of targeting veins, this hands free technology uses harmless
near-infrared light to increase physician effectiveness and decrease
the amount of time to locate a vein.
   Steven E. Zimmet, MD, Zimmet Vein and Dermatology, Austin, Texas
and President of the American College of Phlebology commented, "The
first time I saw the VeinViewer in action I was astounded. It's clear
to me that VeinViewer will become a very useful tool in my everyday
phlebology practice."
   Diomed's target market for the VeinViewer(TM) encompasses
physician specialties practicing radio frequency and endovenous laser
ablation of the greater saphenous vein and its tributaries. The
Company estimates that there are between two and three million
sclerotherapy and ambulatory phlebectomy procedures performed annually
in the United States. Diomed plans to display the VeinViewer(TM) at
the upcoming Society of Vascular Surgery Annual Meeting in
Philadelphia this June and other leading medical conferences later in
the year.
   "This is a remarkable milestone, and we expect to continue to
ramp-up our VeinViewer sales as Luminetx expands its manufacturing
output during the quarter," added Wylie. "Importantly, the VeinViewer
is proving to be exactly what we thought it would be --- a door opener
for Diomed's sales force to access competitive laser and
radiofrequency physicians, and the entire market for venous disease
management solutions."
   Additional information about the VeinViewer(TM) product can be
found at www.DiomedInc.com.

   About Diomed

   Diomed develops and commercializes minimal and micro-invasive
medical procedures that use its proprietary laser technologies and
disposable products. Diomed's EVLT(R) laser vein ablation procedure is
used in varicose vein treatments. Diomed also provides photodynamic
therapy (PDT) for use in cancer treatments, and dental and general
surgical applications. The EVLT(R) procedure and the Company's related
products were cleared by the United States FDA in January of 2002.
Along with lasers and single-use procedure kits for its EVLT(R) laser
vein treatment, the Company provides its customers with state of the
art physician training and practice development support. Additional
information is available on the Company's website: www.evlt.com.

   EVLT(R) is a registered trademark of Diomed Inc., Andover, MA.

   Safe Harbor

   Safe Harbor statements under the Private Securities Litigation
Reform Act of 1995: Statements in this news release looking forward in
time involve risks and uncertainties, including the risks associated
with trends in the products markets, reliance on third party
distributors in various countries outside the United States,
reoccurring orders under OEM contracts, market acceptance risks,
technical development risks and other risk factors. These statements
relate to our future plans, objectives, expectations and intentions.
These statements may be identified by the use of words such as "may,"
"will," "should," "potential," "expects," "anticipates," "intends,"
"plans," "believes" and similar expressions. These statements are
based on our current beliefs, expectations and assumptions and are
subject to a number of risks and uncertainties. Our actual results
could differ materially from those discussed in these statements. Our
Annual Report on Form SEC 10-KSB/A (the "Annual Report") contains a
discussion of certain of the risks and uncertainties that affect our
business. We refer you to the "Risk Factors" on pages 23 through 38 of
the Annual Report for a discussion of certain risks, including those
relating to our business as a medical device company without a
significant operating record and with operating losses, our risks
relating to our commercialization of our current and future products
and applications and risks relating to our common stock and its market
value. Diomed disclaims any obligation or duty to update or correct
any of its forward-looking statements.