Builds on Successful Relationship with The University of Texas M.D. Anderson
                           Cancer Center in Houston

    SANTA CLARA, Calif., May 21 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) announced that The University of Texas M.D. Anderson Cancer
Center has acquired a comprehensive network of the company's CytoVision(TM)
automated chromosome analysis systems.  The sale includes Applied Imaging's
most recently developed system, the CV ChromoScan(TM), a fully integrated
scanning microscopy system that automatically scans prepared microscope slides
for cells whose genetic or structural characteristics are of interest.
    Intended for use in The University of Texas M.D. Anderson Cancer Center
Cytogenetics Laboratory, the CytoVision systems assist in the genetic
characterization of tumor cells utilizing DNA probes and advanced chromosome
analysis techniques.  These automated workstations digitally process
microscopic images of the genetic material found in cancer specimens,
providing data for the more precise characterization of underlying disease
processes.
    Commenting on this recent purchase, Jack Goldstein, Ph.D., President and
Chief Executive Officer of Applied Imaging said, "We are very pleased to have
received this significant commitment from one of the leading international
cancer research and treatment centers to utilize several of our CytoVision
products.  We have supplied genetic image analysis systems to M.D. Anderson
for the past 3 years and we look forward to continuing our established
relationship."
    Applied Imaging Corporation, based in Santa Clara, California, develops,
manufactures, and markets automated clinical and research imaging systems used
by laboratories for cancer, prenatal and other genetic testing.  The Company
markets its products worldwide and has more than 650 customers in over 35
countries.  Applied Imaging is a publicly traded company listed on the Nasdaq
Stock Market under the symbol AICX.
    The foregoing statement may constitute a forward-looking statement within
the meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act.  Actual results could differ materially from those
projected in the forward-looking statement as a result of a number of as set
forth in the Company's form 10K for the year ended December 31, 1998 as filed
with the Securities and Exchange Commission.

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