Ophthalmic Imaging Systems Secures Private Equity Financing

Ophthalmic Imaging Systems (OIS), a digital imaging company, announced it has signed a purchase agreement with U.M. AccelMed (AccelMed), Limited Partnership for a $6.0 million private placement of the Company's common stock and warrants to be completed in two installments.

Under the terms of the purchase agreement, OIS may issue up to an aggregate of 13,214,317 shares of its common stock and warrants to purchase up to an aggregate of 4,404,772 shares of its common stock. The Company intends to use the net proceeds for working capital and general corporate purposes.

In a release, the company noted that the first installment of $4.0 million was completed on June 24. In the first installment OIS sold 9,633,228 shares of common stock at a purchase price of $0.415 per share and issued three-year warrants to purchase up to 3,211,076 shares of common stock at $1.00 per share. The second installment of $2.0 million, consisting of 3,581,089 shares of common stock at a purchase price of $0.558 per share and warrants to purchase 1,193,696 shares of common stock at $1.00 per share, is expected to be completed by April 15, 2010, subject to certain conditions. The warrants to be issued in the second installment will expire three years from the date of completion of the first installment.

In connection with the private placement, the Board of Directors of OIS appointed Dr. Uri Geiger and Moshe (Mori) Arkin from AccelMed to the Board, effective June 24.

"The private equity financing announced will provide OIS with additional resources to successfully market and sell the electronic medical records (EMR) and practice management (PM) solutions OIS and its subsidiary, Abraxas Medical Solutions, introduced over the last eight months. It will also allow OIS to broaden its marketing activities, selling OIS Symphony Image Management systems as well as promoting other innovative products in the development pipeline," said Gil Allon, Chief Executive Officer of OIS.

"I am excited to join the Board of Directors for OIS, as I believe in the vision of the Company to be the leading provider of cutting edge technologies for the eye care market. The Company has expanded its own offerings with the launch of EMR and PM solutions for ophthalmologists and expanded into new medical fields with a wide range of EMR and PM solutions through its subsidiary, Abraxas Medical Solutions. I have great confidence in the OIS management team and I believe that together with AccelMed's resources and connections, OIS has a tremendous future," said Dr. Geiger, AccelMed's Chairman of the board.

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