SANTA CLARA, Calif., Sept. 21 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) announced that it has appointed Olympus France, S.A. to be its
distributor for Applied Imaging's genetic imaging systems in France.
Separately, Applied Imaging has also expanded its existing distribution
agreement in Italy with Olympus Italia, srl to include its MDS(TM) line of
cancer testing instruments.
    The Applied Imaging range of genetic testing systems includes the
proprietary CytoVision(R), Quips(R) and PowerGene(TM) systems for the imaging
and analysis of gene expression and chromosomal abnormalities.  The MDS(TM)
system, recently cleared for marketing by the U.S. Food and Drug
Administration, is an advanced cellular imaging system, with an initial
application for the detection of micrometastatic cells associated with the
spread of cancer.  The MDS is currently marketed directly by Applied Imaging
in the U.S. and in other European markets.
    "We are pleased to have substantially enhanced our distributorship network
in these two key markets," stated Carl Hull, President and Chief Operating
Officer of Applied Imaging.  "The Olympus organizations in France and Italy
have excellent reputations in the pathology and genetics markets through their
extensive range of optical microscopy systems and their well-established
medical instrumentation sales teams.  Our companies will work together to
expand the sales and customer support for Applied Imaging's products in these
countries," added Hull.
    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.  Olympus Europe is a
subsidiary of Olympus Optical Japan and a leader in the fields of microscopy,
endoscopy, in vitro diagnostics and consumer products. With an employee base
of over 3000 people in the major European markets, Olympus Europe's sales in
1999 were over euro 980 million.
    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 10-K 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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