Steven C. Mendell and Lloyd H. Malchow Join Digirad Board of Directors

POWAY, Calif., May 20 /PRNewswire-FirstCall/ -- Digirad Corporation (Nasdaq: DRAD) today announced that it has named veteran healthcare executives Steven C. Mendell and Lloyd H. Malchow to its Board of Directors, effective immediately. The addition of Messrs. Mendell and Malchow expands the board to a total of seven members.

'Steve and Lloyd both have the experience and business acumen that will make them immediate contributors to our board and to the strategic advancement of Digirad,' said R. King Nelson, Digirad's Chairman of the Board of Directors. 'Our stated goal is to rapidly return Digirad to a platform of consistent profitability and positive cash flow that will allow us to move to the next stage of growth and strategic development. Steve and Lloyd have the kinds of broad-based expertise in healthcare, operations and business development that will help guide us in this process. We welcome them to our board and look forward to working closely with them.'

Mr. Mendell, 67, has more than 30 years of experience in the management of healthcare-related businesses. From 1999 to 2007 he worked for San Diego-based LMA North America, Inc., and was most recently its President and Chief Executive Officer. LMA, a publicly traded company in Singapore, is a global leader in the manufacture and distribution of medical devices related to air flow and anesthesia needed during surgery and life-saving interventions. Prior to LMA, Mr. Mendell was President and Chief Executive Officer of San Diego-based Prizm Pharmaceuticals.

Mr. Mendell was a member of the Board of Directors of San Diego-based Gensia Inc., a biotechnology company that later merged with Sicor Inc. to become Gensia Sicor (and was later acquired by Teva Pharmaceuticals). He has also been a member of the Board of Directors of the Biotechnology Industry Organization and represented the biotechnology industry on the NASDAQ Corporate Advisory Board. Mr. Mendell is also a former Inc. magazine Entrepreneur of the Year. He has a bachelor's degree from UC Santa Barbara and a graduate degree in international management from The Thunderbird School of International Management.

Since 1999, Mr.