IMAGIN Responds to OSC Allegations

    TORONTO, Oct. 3 /CNW/ - IMAGIN Diagnostic Centres, Inc. (IMAGIN), its
CEO, Patrick Rooney, (see press release on IMAGIN website published by IMAGIN
in June, 2003) personally and its lawyers strongly disagree with the Ontario
Securities Commission (OSC) as it relates to their interpretation of the rules
regarding solicitation of investment from accredited investors in Ontario.
IMAGIN believes that it has operated using the accredited investor exemption
from registration in that its employees raised capital only from accredited
investors, largely physicians and business owners, most of whom are concerned
about the plights of Canadian cancer patients. Since November 30, 2005, all
but 1 accredited investor solicited, lived outside of Ontario.
    IMAGIN owns and operates the CARE Imaging PET (positron emission
tomography) Scan Centre ( in Mississauga, a pioneering
private medicine clinic introducing the gold standard of cancer diagnosis to
Ontario called a PET scan ( and is a major shareholder of
the Vancouver PET Scan Centre. In the USA and China, IMAGIN thru subsidiaries
and a joint venture with a major Chinese medical technology partner is
developing leading edge PET technology which is targeted at early diagnosis
using proprietary organ-specific PET scans for prostate and other cancers and
is developing unique PET solutions for the diagnosis of cardiac and
Alzheimer's diseases.
    The OSC has a unique interpretation of the rules of raising seed capital
from accredited investors as defined in the harmonized provincial securities
regulations. Young, state-of-the-art technology companies, in the opinion of
IMAGIN, are often forestalled from raising capital in Ontario by the OSC
interpretation of the accredited investor exemption. Ontario operates
differently than all other 9 provinces in that only Ontario has securities
regulations which do not recognize the offering memorandum exemption. The
offering memorandum exemption allows eligible investors in all provinces
except Ontario, the opportunity to invest in private placements for young
companies domiciled in their province or in any other province. Many of these
early stage companies develop and introduce breakthrough technologies and
concepts which improve the world that we live in. Because of the OSC's rule
interpretation, IMAGIN began in 2005 to terminate about 100 Ontarian
employees, some with handicaps and otherwise unemployable, and has now
completed a total move of its corporate offices out of Ontario to British
    Patrick Rooney, CEO of IMAGIN stated, "I personally look forward to a day
in front of the OSC to address their allegations. In 2006, IMAGIN was forced
out of Ontario by an OSC rule interruption that in our opinion doesn't work.
The new securities regulations were finalized on November 30, 2005. From that
date forward IMAGIN sold only 1 Ontario resident who was qualified by IMAGIN
personnel as an accredited investor after November 30, 2005. That investor
acquired $5,000 of IMAGIN equity. All remaining $3,495,000 in Ontario was
raised under the old rules. IMAGIN focussed only outside of Ontario after
November 30, 2005. IMAGIN has saved or extended the lives of over 100
Ontarians with or expected with cancer. Where a cancer patient had no means to
pay, IMAGIN subsidized them. We became OHIP. We never turned a patient away.
We are hopeful to continue to operate CARE Imaging PET Scan Centre in
Mississauga as Ontario's only private PET scan clinic and to be able to help
Ontario's cancer patients in their fight to live. PET scans are not
reimbursable by OHIP and exist only in limited clinical trials at selected
Ontarian hospitals. One cancer hospital, MD Anderson of Houston in the USA
does more PET scans in 10 days than Ontario does in one year. If IMAGIN
abandons Ontario only those cancer patients that can afford to leave the
province of Ontario and travel to the USA, BC, Alberta or Quebec, will have
the opportunity to have a timely PET scan which may help extend their lives.
Furthermore, IMAGIN is on the leading edge of developing state-of-the-art PET
technology for the diagnosis of cardiac, cancer and Alzheimer's diseases all
for the benefit of its shareholders. As they say, Ontario is a great place to
visit but I wouldn't want to build a company there. In future years, young
companies that need seed capital will only be started in provinces outside of
Ontario. As it concerns both private health care and securities regulation,
it's like Ontario has Prohibition at least we know one day it will be

    About IMAGIN

    IMAGIN Diagnostic Centres, Inc. is a developmental stage company
dedicated to being the leader in bringing PET (Positron Emission Tomography)
and PET/CT (Computed Tomography) technology to Canadians. IMAGIN has
significant strategic investments in Positron Corporation (POSC.OB; NASD
Bulletin Board), International PET Diagnostics, Inc., CareImaging Crop., etc,
as well as other PET centres or radiopharmaceutical companies at various
stages of development. IMAGIN's corporate offices are located in Vancouver,
British Columbia.

For further information:

For further information: Patrick Rooney, CEO, IMAGIN Diagnostic Centres,

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