Imaging Dynamics receives receipt for final short term prospectus

Aug 13 2010

Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL), a global supplier in the high growth digital radiography equipment market, announces that it has received a receipt dated August 11, 2010 for a final short form prospectus (the "Prospectus") filed with the securities commission in each of the provinces of Alberta, British Columbia, Manitoba and Ontario, relating to its previously announced rights offering (the "Offering"). The Company is seeking to raise $2,617,443 in gross proceeds from the Offering.

Under the terms of the Offering, shareholders of record on August 25, 2010 will be entitled to receive one right ("Right") for each common share held. Each Right will entitle eligible holder thereof to purchase one common share of the Company at a price of $0.03 per share. The exercise of Rights and the payment for common shares must be completed by 4:30 p.m. (Calgary time) on September 20, 2010 (the "Expiry Date"). Shareholders who fully exercise their Rights are entitled to subscribe, on a pro rata basis, for additional common shares, if available, that are not otherwise subscribed for on or before the Expiry Date.

Registered shareholders in eligible jurisdictions will receive a copy of the Prospectus and their Rights certificate by mail shortly after August 25, 2010. Shareholders who hold their shares in a brokerage account or with a nominee should contact such broker or nominee in order to exercise their Rights. More detailed information is contained in the Prospectus available on SEDAR at www.sedar.com. Shareholders should consult the Prospectus and their own legal and financial advisors to determine their rights and entitlements under the Offering.

The Company intends to use the net proceeds from the Offering to provide working capital, new product introductions and for general corporate purposes.