SANTA CLARA, Calif., July 27 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) announced today that it is collaborating with Professor Klaus
Pantel M.D., Ph.D. of the University Hospital--Eppendorf in Hamburg, Germany
to develop new methods for the genetic characterization of cancer cells.
    Using the Applied Imaging MDS(TM) System, Professor Pantel and Applied
Imaging will collaborate in developing methods for the specific genetic
characterization of cancer cells using DNA and RNA probes.  In particular,
fluorescent in situ hybridization techniques (FISH) will be used for the
genetic characterization of primary tumor tissue and micrometastases (cancer
cells that have spread from the primary tumor).  The improved characterization
of micrometastases will provide the oncologist with important information for
the selection of the most appropriate treatment for the patient.
    Dr. Jack Goldstein, Applied Imaging's Chief Executive Officer, stated, "In
the field of cancer research Professor Pantel is an internationally recognized
leader whose recent work involves the study of micrometastatic cancer cells in
bone marrow and other tissues.  The increased understanding of the genetic
make-up of individual cancer cells is expected to offer clinicians significant
new information about the origin, aggressiveness and likely response to
therapy of cancers that may be in the earliest stages of development or
recurrence.  The identification and characterization of micrometastic cancer
cells is a key component of the Applied Imaging strategy to become the leading
provider of instrumentation and reagents for the clinical and research cancer
markets."
    The MDS System is an advanced scanning microscopy system capable of
detecting rare cellular events in concentrations as low as one cell of
interest among one million other cells.  Once detected, the MDS utilizes its
proprietary fluorescence analysis software to study multiple genetic markers
within individual cells or in tissue sections taken from primary tumors.  The
ability to detect and analyze multiple genetic markers simultaneously allows
researchers to develop panels of genetic tests that may be used to select
treatments and monitor individual patient responses to therapy.
    Applied Imaging Corp., based in Santa Clara, California, is the leading
supplier of automated imaging systems utilized in genetics and pathology
laboratories for the analysis of chromosomes in cancer and prenatal disorders.
The Company is expanding its efforts in scanning and imaging applications in
the cancer pathology field.  Applied Imaging has installed over 2000 systems
in 1000 laboratories in more than 35 countries.
    This press release contains forward looking statements as defined in the
Private Securities Litigation Reform Act of 1995, regarding, among other
matters, the Company's future financial performance as well as its research
and development and product development efforts.  Forward looking statements
address matters that are subject to a number of risks and uncertainties,
including the uncertainty of clinical studies and regulatory approvals.
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
genetic instrument business, and other such factors as set forth in the
Company's form 10k for the year ended December 31, 1999 as filed with the
Securities and Exchange Commission.
    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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