AccuImage Diagnostics Corporation

June 29th 2000Robert Taylor, Ph.D. Chief Executive Officer

AccuImage in 1999The product and market during fiscal year 1999:

AccuImage was largely development-phase. Product offering was the AccuView Medical Imaging Workstation. Sales were dominated by OEM agreement with Imatron: ~70% Remainder of sales were direct, mostly to Imatron customers: ~20% A small portion of sales not related to Imatron ~10%

AccuImage in 1999The corporation during fiscal year 1999:

New management team established Technology excellence recruited and deployed FDA Clearance to market new software sought and obtained Financed by ~$0.5M private placement Process of becoming a reporting company initiated Limited capacity for marketing product and company

AccuImage in 1999The technology during fiscal year 1999:

Advanced 3D post-processing Networking capability Workflow and productivity Distinguishes us from PACS companies BUT a limited marketplace

AccuImage in 2000The products and marketplace in 2000:

Product now to market approximately 300% growth this year to date More emphasis on Web radiology and PACS eStation3D Broader technology base opens markets beyond OEMs Direct Sales not related to OEMs showing more promise our future? Imatron and Imatron-related sales strong to date competing successfully Exploding PACS marketplace brings opportunity and competition

AccuImage in 2000The corporation in 2000:

Expansion and recruitment. Natural growth to 15-20 staff by year end. SEC-versed CPA retained and Reporting Company status being pursued. First two quarters of fiscal year 2000 profitable Revenue in first two quarters alone exceeds entire prior fiscal year Funds for expansion provided by ~$0.75M private placement Need for rapid business development clearly defined

AccuImage in 2000The technology during fiscal year 2000:

Advanced 3D post-processing now mature Web-based distribution and review added This popular product rapidly deployed Broader technology opens direct markets Technology capable of SCALE

AccuImage StaffingAccuImage is growing CEO Robert Taylor, Ph.D. Vice President, Sales Shelley Powers Financial Controller Michael Berghofer Head of Operations Chris WiedmannRecent and imminent staff additions:New salespeople - Florida, Southern California Expert software developersFinancial expertise Experienced clinical applications specialists Additional technical support staff Additional administrative staff

Financial Summary

Chart1

365.2961997

443.3441998

1059.1381999

1677.8021677.802

Final/YTD

Projected based on YTD

Year

Revenue ($000's)

Sheet1

1997365.30

1998443.34

19991,059.14

20001,677.801,677.80

Sheet1

Final/YTD

Projected based on YTD

Year

Revenue ($000's)

Sheet2

Sheet3

Financial Summary

Chart1

205.847-60.098

256.866-67.197

303.774-24.634

275.6-478.55

875.46144.3

802.341298.051

Revenues

Net income

Quarter

$000's

Quarterly Analysis

Sheet1

1997365.30

1998443.34

19991,059.14

20001,677.801,677.80

Sheet1

00

00

00

00

Final/YTD

Projected based on YTD

Year

Revenue ($000's)

Sheet2

RevenuesNet income

Q1-99206-60.098

Q2-99256.866-67.197

Q3-99303.774-24.634

Q4-99275.6-478.55

Q1-00875.46144.3

Q2-00802.341298.051

Sheet2

Revenues

Net income

Quarter

$000's

Quarterly Analysis

Sheet3

AIDP Stock volume and price historyShares Outstanding on May 10, 2000: 10,981,534

AccuImage TomorrowAccuImage has three avenues to pursue:

WanPACS Enterprise-wide solutions for medical imaging. Our existing technology deployed via Wide Area Networks

Direct Sales Direct sales of workstations to replace film and for advanced applications such as 3D Volume Rendering

OEMBuilding on our past success providing strong, responsive support for OEMs requiring advanced workstation tools.

AccuImage TomorrowThe WanPACS model:AccuImage contracts with hospitals and imaging centers to provide off-site archiving and enterprise-wide solutions for their medical imaging needs, as a Fee-Based Service.

The service includes: WAN-based archiving of image data On-site review and post-processing Off-site distribution and teleradiology Secondary services

AccuImage TomorrowThe Services WAN-based archiving of image data:UCLA, with around 600 beds, is generating 6TB per year already. There are ~300 hospitals this size or larger in the US alone, and over 6000 smaller facilities.* In addition, there are numerous imaging centers without any beds. It is probably a conservative assumption that when medical imaging is fully digital, 1TB will be required per 100 beds. With approximately 1.25 million beds in the US*, that translates to at least 12.5 petabytes per year and rising as imaging modalities generate more and more output. This is for the US alone

*Source: National Hospital Blue Book 2000

AccuImage TomorrowThe Services On-site review and post-processing:Workstations will provide the softcopy reading for radiologists, as well asreview stations for other departments such as the ER, CCU, ICU, OR, and advanced post-processing for 3D labs. Off-site distribution and teleradiology:From the centralized archive, images can be distributed over virtual private networks and the internet to referring physicians, and remote reading physicians. All these physicians are also potential customers for our post-processing technology. Secondary services:Via a web browser, hospitals will be able to order films, CDs or hardcopy reports to be generated at the service providers facilities and distributed to a designated recipient.

AccuImage TomorrowThe WanPACS market:The key phrase from an earlier slide was:at least 12.5 petabytes per year and rising

If providers charged 10 cents per megabyte for storage, and providedall the other aspects as part of the service, with that would still be a $1.25bn per year market.

In reality, it is likely the storage aspect with be only the primary market, with a large secondary market in review and reading equipment.

We need to move fastHow can a small company like AccuImage compete in this marketplace? The competition is formidable:GE, Siemens, Agfa, Kodak and numerous startups are all seeking a share in this marketplace. Is our technology any different?Our sophisticated post-processing and responsiveness could help distinguish us once we have established a market share. How can we establish a market share?Provide a show site with an enterprise-wide solution.Use that referral to secure two more sites.Use those referrals to secure ten more sites and so on.

Healthcare is currently lost in a maze of vapor products countless radiology administrators needing to go digital but unable to find a well-recommended or established product that covers all their needs. Providing a system that WORKS to one customer, as high a profile customer as possible, is the key. Our competitors are doing this right now. We need to move fast.

What next? Implement WanPACS beta site Seek next round financing for WanPACS business model Continue natural growth of current operations Develop stronger presence in the investment community Aggressively seek strategic alliances and partnerships

WanPACS beta site what will it take?Our first WanPACS installation:

Target a 300 bed hospital, ~3TB per year, 3 reading rooms, 3D lab, filming services, teleradiology, referring physicians, ER, OR, ICU, CCU.~2 Full-time software developers for product development and refinement1-2 Full time technical specialists for service, installation and support1 Part-time Clinical Applications SpecialistAdministrative supportManaged server provision from third party (running our software)

First year cost: ~$1MSecond year cost: ~$150KEstimated downstream retail value: $2M capital outlay, $500K annual service fee, Other services extra