SANTA CLARA, Calif., Jan. 11 /PRNewswire/ --  Applied Imaging Corp.
(Nasdaq: AICX), announced today that it has been awarded a "Smart Exceptional
Project" grant from the Department of Trade and Industry of the United Kingdom
for 423,000 pounds sterling, or about $680,000.  The grant is for the
Automated Detection of Micrometastatic Cells in Bone Marrow and Peripheral
Blood.  One specific objective of the program is to develop novel methods for
more rapid scanning microscopy in the detection and monitoring of cancer.
    "This grant will enable us to develop high throughput automated systems
for finding and characterizing cancer cells in the bone marrow and peripheral
blood of cancer patients using the MDS(TM) (Micrometastasis Detection
System)," said Jack Goldstein, Chairman and CEO of Applied Imaging.  He added
"This will optimize the next generation MDS for use in laboratories performing
large scale screening of specimens from cancer patients."

    This press release may contain forward looking statements as defined in
the Private Securities Litigation Reform Act of 1995, regarding, among other
matters, the Company's future financial performance.  Forward looking
statements address matters that are subject to a number of risks and
uncertainties.  Actual results could differ materially from those projected in
the forward-looking statement as a result of a number of factors including the
failure of the Company to successfully develop and commercialize its
micrometastasis or cytogenetic instrument business, and other such factors as
set forth in the Company's form 10k for the year ended December 31, 1998 as
filed with the Securities and Exchange Commission.

    Applied Imaging Corporation, based in Santa Clara, California, develops,
manufactures and markets automated clinical analysis systems used by
laboratories for prenatal, cancer and other genetic diseases.  The Company
markets its products worldwide and has more than 800 customer sites in over 35
countries.  Applied Imaging is a publicly traded company listed on the Nasdaq
Stock Market under the Symbol AICX.

    For additional information on Applied Imaging via fax, please dial
1-800-PRO-INFO, (732-544-2850 outside of the U.S.), code AICX.

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