Released February 13, 2008

Medicsight PLC

(“Medicsight” or “the Company”)

Medicsight and Toshiba PACS division sign commercial agreement

Medicsight PLC (AIM:MDST) is pleased to announce that it has signed a preliminary agreement with the System Integration division of Toshiba Medical Systems Corporation (“Toshiba”) for the resale of its MedicRead Colon and ColonCAD software solutions throughout Japan.

Toshiba Medical Systems Corp. is a global leading provider of diagnostic medical imaging systems and comprehensive medical solutions, such as CT, X-ray, Ultrasound, Nuclear Medicine, MRI and information systems. Toshiba will work with Medicsight to obtain MHLW approval in Japan. In addition, both companies have also identified the need for radiologists and gastroenterologists to be trained in the use of the software to help them to interpret CT colonography (CTC) images and rapidly identify suspicious regions for detailed evaluation. In late October Medicsight and Toshiba hosted CTC training workshops at the Japanese Digestive Disease Week (JDDW) conference in Kobe. The JDDW conference is the largest Gastroenterological congress of the year in Japan. Medicsight and Toshiba will continue to work together on similar market development initiatives in 2008 and beyond.

David Sumner, Chief Executive of Medicsight, commented: "We are delighted to be working with Toshiba, one of the worlds largest medical imaging solution providers. This agreement is timely as the recently announced positive outcomes of two major clinical trials are widely expected to accelerate the adoption of CTC (also known as virtual colonoscopy) as routine primary screening for colorectal cancer. Toshiba will help to promote the use of our MedicRead Colon and ColonCAD^™ software to ease the workload of radiologists and to help them accurately identify colorectal polyps and tumours at an early stage when there is a good chance of successful treatment. We see this as bringing important benefits to both Japanese patients and the Japanese healthcare system alike.”

Takashi Masuzawa, Chief Specialist of Toshiba System Integration development department, added: ”We believe that the Medicsight advanced software solutions will augment the strong portfolio of Toshiba products and provide an opportunity to market the integrated PACS products to current and future customers. Both Medicsight and Toshiba view this agreement as the start of a long term relationship for CT colonography solution in Japan. It is the intent of this agreement to continue further development and licensing of joint Medicsight and Toshiba products through the Toshiba PACS channel.”

Gen Iinuma, Head of Staffs, Diagnostic Radiology Division, National Cancer Center Hospital Tokyo, commented: “We have been working on the development of the Medicsight ColonCAD in collaboration with Professor Steve Halligan, University College Hospital, for some time now. This collaboration consists of a 3 year clinical programme, which when delivered upon will deliver 8 clinical studies to support both the regulatory and sales & marketing efforts of Medicsight and Toshiba. We have been delighted with the performance of the product and are very pleased that the Radiology community at large will soon have this additional software solution available to them to help combat this debilitating and potentially fatal disease.”

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Notes to editors

Medicsight PLC is a UK-based, research driven, leading developer of computer-aided detection (CAD) and image analysis software for the medical imaging market. The CAD software automatically highlights suspicious areas on computerised tomography (CT) scans of the colon and lung, helping radiologists to identify, measure and analyse potential disease and early indicators of disease. Medicsight’s computer-aided detection (CAD) software has been validated using one of the world’s largest and most population diverse databases of verified patient CT scan data. Medicsight’s ColonCAD^™ and LungCAD^™ software products are seamlessly integrated with the advanced 3D visualisation workstations of several industry-leading imaging equipment partners.

About Computer-Aided Detection

With increasingly sophisticated radiological imaging hardware such as Multi-Detector CT scanners, radiologists are facing a growing challenge in the amount of detailed patient image data that they must review for each patient examination. Some CT scan examinations generate as many as 1000 images per patient. Review of this data by the radiologist is not only time-consuming but also prone to error due to reader fatigue. CAD software can help the reviewing radiologist by analysing the image data and automatically highlighting suspicious regions of interest for closer inspection. Without CAD software some potential abnormalities or areas of disease may be overlooked. This is critical for diagnosis and the management of patient outcomes as early detection of disease greatly increases the probability of successful treatment and a positive therapeutic outcome.

About Medicsight’s CAD software

Medicsight’s ColonCAD^™ and LungCAD^™ software use an advanced CAD algorithm to analyse CT scans of the colon and lung and automatically highlight suspicious areas that may be indicators of disease. CAD may highlight areas easily overlooked by the reviewing radiologist, such as small lesions or regions that are hidden from view behind folds in the colon or normal structures and surrounding tissue in the lung.

Both CAD products seamlessly integrate with the advanced 3D visualisation platforms of industry-leading imaging equipment partners. The integrated systems provide sophisticated image viewing capabilities, including 3D reconstructed image data, with the added advantage of demonstrating automatic CAD findings to assist clinical end users in the detection and analysis of disease. This allows clinical end users to perform either a ‘second read’, where CAD findings are displayed to the user after completion of an initial review of the CT scan data, or a ‘concurrent read’ where CAD findings are displayed during the user’s initial review of the original CT scan images.

Since inception, Medicsight has developed close and lasting relationships with some of the world’s foremost clinicians in product related areas. This provides the Company with a wealth of clinical expertise and dedicated clinical research to support ongoing product development. Medicsight also collaborates with a number of leading academic institutions and clinical research programmes worldwide to develop the Company’s comprehensive database of population diverse verified patient CT scan data, thus allowing Medicsight’s products to be validated to the highest possible standards.

About ACRIN 6664

The preliminary results of the National US Computerised Tomography (CT) Colonography Trial (ACRIN study 6664), released on 28 September, demonstrated convincingly that CT colonography is at least as sensitive and specific as conventional optical colonoscopy in detecting adenomas of 1 cm diameter or larger. A few days later another major study[1] was published in the prestigious New England Journal of Medicine with a similar outcome. These compelling results from two large well-controlled studies are expected to lead to widespread adoption of CT colonography (also known as virtual colonoscopy) as routine primary screening for colorectal cancer.