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LED Medical Diagnostics Announces Final Closing of Private Placement and Grant of Options and DSUs

BURNABY, BRITISH COLUMBIA -- (Marketwire) -- 01/10/13 -- LED Medical Diagnostics Inc. (TSX VENTURE:LMD) ("LED" or the "Company") announces that it has completed the previously announced second tranche of an expedited non-brokered private placement of 1,300,000 Common Shares at an issue price of $0.25 per share for gross proceeds of $325,000. In combination with the first tranche, LED raised a total of $1,162,500 and issued 4,650,000 common shares at $0.25 per share.

All of the securities issued in connection with the private placement are subject to a restricted period that expires four months after the issuance date.

The proceeds will be used by LED to support product development, to purchase inventory and for working capital purposes.

LED also announces that is has granted a total of 2,600,000 incentive stock options to management, employees, directors and consultants of the Company. Each stock option is exercisable to acquire one Common Share of the Company at $0.30 per share and can be exercised for an 8 year term. LED has also granted awards under its deferred share unit plan to management, directors and consultants of the Company entitling them to receive up to 950,000 Common Shares of LED. The deferred share units were issued at a value of $0.25 per unit.

About LED Medical Diagnostics Inc.

LED Medical Diagnostics Inc. was founded in 2003 and is headquartered in Burnaby, British Columbia, Canada. Its wholly-owned subsidiary, LED Dental Inc., is the manufacturer of the Velscope Vx Enhanced Oral Assessment System. Velscope Vx devices, the first to apply tissue fluorescence visualization technology to the oral cavity, are used to conduct more screenings for oral cancer and other oral diseases than any other adjunctive device in the world. To date, the VELscope has sold over 12,000 units, and been used to perform an estimated 20 million exams. For more information, call +1 (604) 434-4614, or visit www.velscope.com.

About the VELscope Vx

The Velscope Vx is a powerful FDA-approved tool used to screen for oral cancer. It saves lives and decreases mortality by helping clinicians detect early stage oral cancer, pre-cancer, and other abnormalities in the mouth such as viral, fungal and bacterial infections. For more information please call +1 (604) 434-4614, or visit www.velscope.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
LED Medical Diagnostics Inc.
Mark Komonoski, Investor Relations
(403) 255-8483 or Toll-Free: (877) 255-8483
Cell: (403) 470-8384
mark@komonoski.com
Skype: mkomonoski

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