ANDOVER, Mass.--(BUSINESS WIRE)--March 25, 2003

Diomed Holdings, Inc (AMEX: DIO) announced today that it has received regulatory approval from Health Canada for its EndoVenous Laser Treatment (EVLT(TM)) laser system to treat varicose veins, enabling Diomed to expand its promotion of EVLT(TM) into Canada. Diomed also announced that it has engaged Sigmacon Health Products Corporation of Toronto, Ontario as its exclusive Canadian distributor for the sale of Diomed's EVLT(TM) lasers and EVLT(TM) optical fiber kits to physicians who treat varicose veins.

Diomed is the first endovenous laser to receive approval by the U.S. Food and Drug Administration for expanded indications for treatment of varicose veins and varicosities associated with the superficial vein reflux of the greater saphenous vein. EVLT(TM) is a non-surgical treatment that can be performed under local anesthetic in a doctor's office to treat the medical cause of varicose veins at its source.

"Thousands of U.S. patients have benefited from EVLT(TM) by being able to walk out of their physician's office and resume normal activity quickly without any lasting side effects," said James A. Wylie, Jr., President & CEO of Diomed. "Canadian approval of EVLT(TM) is both a milestone for Diomed and an important validation of EVLT(TM) in the treatment of varicose veins. Now, Canadians who suffer from varicose veins don't have to live with the chronic and debilitating conditions of the disease. And, they have a better alternative that cures the disease, not just slows its progression."

According to Jay Herman, Sr. Vice President at Sigmacon, "The Health Canada Approval means we can now offer the minimally invasive EVLT(TM) technique to both the public and physicians. As a distributor with a 20 year history we do the same due diligence on companies and procedures as any medical practitioner would - selecting on the best of breed. Diomed is the innovator of this technique and has devoted its resources to continually perfecting it, and we believe that Diomed will be the leader in providing products for endovenous laser treatment of varicose veins."

About Varicose Veins

The most common medical origin of varicose veins is known as "reflux of the greater saphenous vein," the major vessel in the superficial venous system, running from the groin to the ankle. Within all veins there are a series of one-way valves that assure blood flow in the direction of the heart. "Reflux" relates to a failure of these valves that causes blood to flow backwards, pool and stretch the walls of veins in the lower leg causing the unsightly blue, bulging and painful veins known as varicose veins. Heredity is the most important factor, followed by gender and age. Women have a higher incidence of varicose vein disease, due in part to the female hormones affecting the vein walls, especially during pregnancy when there is also a temporary increase in blood pressure and volume in the veins. Age is a factor because vein walls loose elasticity, causing the valve system in veins to work less effectively. Up to 25 of all women and 18 of all men will suffer from vein reflux disease to some degree.

About Diomed

Diomed specializes in developing and commercializing minimal and micro-invasive medical procedures that use its laser technologies and disposable products. In developing and marketing its innovative clinical solutions, it uses proprietary technology and aims to secure strong commercial advantages over its competitors by gaining governmental approvals in advance of others and through exclusive commercial arrangements. To participate in the rapidly growing, minimal and micro-invasive medical procedure industry, Diomed integrates disposables into its product lines. Diomed holds proprietary technology in certain methods of synchronizing diode light sources and in certain optical fibers. Diomed focuses on photodynamic therapy (PDT) for use in cancer treatments, EndoVenous Laser Treatment (EVLT(TM)) for use in varicose vein treatments, and dental and general surgical applications.

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 detailed in the company's Securities and Exchange Commission filings.

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