SANTA CLARA, Calif., Oct. 25 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) announced today that it will be participating in a planned
clinical study at The Hammersmith Hospital in London to determine the clinical
significance of bone marrow micrometastases among breast cancer patients.
Other objectives of this study include determining the response of large
numbers of patients to novel combinations of drug therapies for breast cancer.
    The laboratory of Professor Charles Coombes, Imperial College of Science
and Medicine, will also be evaluating the company's MDS(TM) system in
comparison with other methods for the accurate identification of these
extremely rare cancer cells.  The ability to detect and characterize
micrometastatic cancer cells provides oncologists with important additional
information that could lead to more aggressive treatment and follow-up than
would otherwise be indicated.  According to Professor Coombes, these
micrometastases may serve as the earliest indicators of the spread of cancer
in up to 50% of patients diagnosed with primary tumors.
    Professor Coombes adds, "The Applied Imaging system offers us the ability
to not only find these rare cells, but also to conduct genetic studies using
DNA probes to assess their origin and biological aggressiveness."  Applied
Imaging has recently received clearance from the US Food and Drug
Administration to market the MDS(TM) system as an aid to pathologists in the
detection of certain rare cancer cells in bone marrow specimens.
    "We are delighted to be providing our systems to the Hammersmith team for
conducting this clinical research program, which has potentially far-reaching
benefits for the hundreds of thousands of new patients diagnosed with breast
cancer each year," said Jack Goldstein, PhD, Chairman and CEO of Applied
Imaging.  He added, "Our participation will help optimize the MDS(TM) system
for use in laboratories performing large scale screenings of cancer patients."
    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.
    The Hammersmith Hospitals Trust and its university research partner,
Imperial College of Science and Medicine, are internationally renowned for
their contributions to a wide range of biomedical innovations.  The
Hammersmith Hospital has been a national medical resource for the past 50
years and is the only hospital in Britain staffed and led by academic
physicians, encouraging a seamless partnership among the Hospital, the
University and the country's Medical Research Council.  In this innovative
environment, many of the important medical advances of the past thirty years
have been developed, among them the first heart-lung machine and the earliest
clinical magnetic resonance imaging (MRI) instrumentation.

    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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