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Efforts Reduce Debt by Over $6 Million

Positron Corporation , a molecular imaging and solutions company specializing in Nuclear Cardiology and a leader in Cardiac PET, announced that the Company has significantly improved its balance sheet, financial strength and flexibility as a result of resolving several outstanding debts, including a settlement with certain investors relating to a prior financing transaction.

As a result of management efforts, Positron has effectively reduced its debt by over $6 million, from approximately $7 million at the end of the first quarter, and expects to be nearly debt-free within the upcoming weeks.

"Since the end of the first quarter the Company has worked diligently to take the necessary steps to make Positron financially stronger for the future. As a result, Positron has emerged from this process a stronger, more focused company with improved liquidity and manageable debt levels," said Patrick G. Rooney, Chairman and Chief Executive Officer of Positron. "With a stronger balance sheet we are eager to continue forward as a far more competitive enterprise -- one that is well-positioned for strategic acquisitions and organic growth in the year ahead."

The Company noted that among the outstanding debts it was able to resolve, was a settlement with certain investors who had originally loaned Positron $1.3 million in May 2006, in the form of callable secured convertible notes. In settlement of the notes, plus interest, penalties and late fees, Positron paid the investors $1.0 million in cash and 8.5 million shares of common stock.

The Company also noted it will be filing a Form 8-K in association with today's announcement.

Source: Positron Corporation