BOTHELL, WA, April 4, 2005 - Diagnostic Ultrasound Corporation ("DU"), a rapidly growing provider of innovative medical devices, today announced the completion of the first phase of a $34 million investment from DW Healthcare Partners, L.P., and Rho Private Equity, L.P. The capital will be used to fund both internal and acquisition-focused growth initiatives.

"This partnership presents a great opportunity and we are excited about working with DW Healthcare Partners and Rho Private Equity," said Gerald McMorrow, CEO, Founder & Chairman of the Board of Diagnostic Ultrasound. "Having the expertise and resources of our new investors will enable us to pursue a growth strategy that will serve to benefit our customers, shareholders, and employees."

Diagnostic Ultrasound specializes in application-specific medical ultrasound devices and related software and imaging services. The company currently offers diagnostic technologies for the Urology, Acute Care, Primary Care and Extended Care markets. DU is best known for its BladderScan® product line, which is accepted by healthcare providers as the standard of care for bladder volume measurement. BladderScan® instruments are noninvasive, accurate and easy to use, and are clinically proven to help prevent unnecessary catheterization, reduce rates of urinary tract infection and minimize patient trauma.

"We are pleased to have been chosen by Diagnostic Ultrasound as an equity partner," said Andrew C. Carragher, Co-founder and Managing Director of DW Healthcare Partners. "The management team has a very impressive track record. We are excited to help the company build upon its prior successes and execute on its growth strategies."

About Diagnostic Ultrasound

Diagnostic Ultrasound fills a unique niche in the ultrasound industry, specializing in the development of portable, application-specific ultrasound devices. The company's mission is to advance patient care by making noninvasive ultrasound more accessible to healthcare providers. Founded in 1984, Diagnostic Ultrasound has grown from a small start-up venture to a thriving and profitable international corporation with a growth rate approaching 30% per annum. For more information, please visit http://www.dxu.com.

About DW Healthcare Partners

DW Healthcare Partners ("DWHP") is an $88 million private equity firm focused exclusively on the healthcare industry. The firm is led by four seasoned healthcare executives with more than 80 years of combined industry experience. DWHP invests in profitable healthcare companies with proven management teams. For more information, please visit http://www.dwhp.com.

Contact: Justin Pettit, DW Healthcare Partners, (801) 365-4007.

About Rho Private Equity

Rho Private Equity ("RPE") provides private equity capital to a broad spectrum of transactions, including buyouts, recapitalizations, financial and/or operational turnarounds, and growth situations. RPE is a division of Rho Capital Partners, Inc., which has approximately $2 billion under management. For more information, please visit http://www.rho.com/.

Note: BladderScan® is a registered trademark of Diagnostic Ultrasound Corporation. All rights reserved.