Diomed Holdings, Inc., a leading developer and marketer of minimally invasive medical technologies, including its patented EndoVenous Laser Treatment (EVLT) for varicose veins, announced that, in its trial to prosecute its US EVLT Patent No. 6,398,777, the jury found AngioDynamics and Vascular Solutions both liable for infringement. The case, which began on March 12th, concluded on March 28th, with the jury verdict finding each defendant liable for both inducing infringement and contributory infringement of Diomed's patent, and awarding a total of $12,460,000.

"We are obviously extremely pleased with the outcome of this critical case. We are thrilled that the jury has recognized the value of Diomed's pioneering patent," stated James A. Wylie, Jr., President and Chief Executive officer of Diomed Holdings, Inc. "We plan to immediately file for a permanent injunction against AngioDynamics and Vascular Solutions which, if granted, will require both companies to cease marketing their infringing products. We are hopeful for an early ruling from the court which will allow us to focus our efforts on growing this exciting market."

In January 2004, Diomed commenced legal action in the United States Federal District Court for the District of Massachusetts against AngioDynamics, seeking injunctive relief and damages for infringement of Diomed's pioneering United States Patent Number 6,398,777 which covers the endovascular laser treatment of varicose veins. Diomed acquired exclusive rights to the patent from the five inventors of the procedure in September 2003. Diomed initiated similar actions against Vascular Solutions, CoolTouch (New Star Lasers) and Total Vein Solutions later in 2004. The later two actions are still pending under the jurisdiction of the same Court and are expected to move to trial later this year.

"This decision radically alters the competitive landscape in the treatment of venous disease and is expected to have a significant impact on our financial performance going forward," added David B. Swank, Chief Financial Officer of Diomed. "At existing growth rates, AngioDynamics and Vascular Solutions sales represent approximately $20 to $25 million in annual customer demand and we have already initiated plans to maximize our share of that business. We also expect that the ability to recover royalty payments and the elimination of the legal burden associated with the '777 litigation to assist in improving our financial performance."

"The process of protecting our intellectual property rights has been lengthy and expensive," Mr. Wylie concluded. "We will now be able to focus our resources on accelerating the development of the laser market for treatment of varicose veins, particularly in reaching out and educating patients about the advantages of endovenous laser treatment over alternative procedures."