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Health Discovery Corporationís Newest U.S. Patent Covers SVM-Based Analysis of Medical Images

Tuesday, August 12, 2008

Savannah, GA -- Health Discovery Corporation ("HDC") today announced that the United States Patent and Trademark Office has granted Patent No. 7,383,237 on HDC's claims covering the use of Support Vector Machines (SVM's) in computer-aided image analysis for analysis of digitized microscopic images of medical specimens. This new patent is a continuation of HDC's Patent No. 6,996,549, which covers a broad range of uses of SVM's for image analysis.

The claims of HDC's newest patent focus on a method and computer system for analyzing medical images generated during microscopic evaluation of cytology specimens and tissue samples. Examples of commercial diagnostic and prognostic applications of the patented technology include circulating cell screening and cytopathology slide analysis, among others. Circulating tumor cells (CTCs) and/or circulating epithelial cells (CECs) in the blood of cancer patients have proven to be a strong, independent predictor of Overall Survival (OS) and Progression Free Survival (PFS). These cells can also be used for serial monitoring of patients for improved clinical management of metastatic cancer. Circulating cell analysis involves the generation of large numbers of microscopic "snapshots" of a sample chamber containing the patient's blood. Currently, a small number of these snapshots are then selected for visual examination by a technologist or pathologist. However, SVM-aided image analysis using the patented method could permit automated and rapid analysis of all of the sample images, greatly increasing the sensitivity and accuracy of such tests.

Cancer screening using cervical cytology slides ("Pap Smear" testing) and pathological evaluation of biopsied tissue are important applications of the patented technology which are the subject of the recently-announced license, development and commercialization agreement between HDC and DCL Medical Laboratories, LLC, which includes a license under HDC's newest patent. The patented SVM-based imaging method is expected to improve the sensitivity of detection for endometrial and cervical cancers and significantly improve the specificity of ovarian cancer diagnosis. The new CAD-based digital pathology SVM-based algorithms could offer a faster, highly objective, and more accurate interpretation of cells to assist pathologists in making correct diagnoses for physicians and their patients.

"This new patent goes to the heart of HDC's vision of redefining the relationships between diagnostics and treatments for personalized medicine using our state-of-the-art SVM technology," said Stephen D. Barnhill, MD, Chairman and CEO of HDC. "The U.S. cytology market was estimated to be approximately $2 billion in 2006 and continues to grow at a rapid pace. Our SVM-based image analysis provides a valuable tool for every facet of this market, assisting pathologists in clinical laboratories, hospitals, academic centers and medical/pharmaceutical industries by providing an accurate, objective diagnostic interpretation to physicians for their patients. We expect the technology to have enormous value as a 'second opinion,' so much so that insurers might even make the analysis a mandatory part of every cytopathology test."

With the issuance of this new patent, Health Discovery Corporation now holds the exclusive rights to 31 issued U.S. and foreign patents covering uses of SVM and FGM (fractal genomics modeling) technology for discovery of knowledge from large data sets. Other patents issued to HDC cover methods and systems for pre-processing of data to enhance knowledge discovery using SVM's, analysis of data using multiple support vector machines and for multiple data sets, and providing SVM analysis services over the Internet. HDC's pending U.S. and foreign patent applications cover numerous improvements to, and applications of, SVM's including computer-aided image analysis using SVM's, methods of feature selection for enhanced SVM efficiency and biomarkers for colon cancer, prostate cancer, BPH and renal cancer discovered with these methods, and the use of SVM's for analysis of spectral data, such as mass spectrometry data used for protein analysis.

About Health Discovery Corporation

Savannah-based Health Discovery Corporation is uniquely positioned in the field of pattern recognition technology. Through the application of its patent protected technology, HDC is a leader in SVM-based molecular diagnostic and prognostic test development in genomics and proteomics, as well as, digital image analysis in pathology and radiology. The Company's SVM and FGM pattern recognition tools have significant application potential in other sizable commercial markets such as oil exploration, financial markets, Internet search and spam, homeland security, and other areas where analysis of large volumes of complex data is required.

This news release contains "forward-looking statements" within the meaning of Section 27a of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the respective management teams of HDC and DCL believe that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove correct. DCL and HDC do not assume any obligation to update any forward-looking statements or other information contained in this document.

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