Change of contract terms

Immunodiagnostic Systems Holdings PLC

("IDS" or "the Company")

Change of contract terms

IDS, a leading producer of diagnostic testing kits, announces that it has agreed with Escalon Medical Corporation ('EMC'), the NASDAQ quoted healthcare company, to change the repayment schedule of the deferred consideration owed to it by EMC in relation to the sale of the Haemotology Division that was announced in January 2009.

Under the original agreement, EMC was due to pay IDS €4.2m over a period of 4 years. IDS has agreed with EMC to change the repayment profile so that the outstanding balance of €3.4m will now be paid over a further 5 year period on the basis of $50,000 per month combined capital and interest payment with one final balloon payment. Interest continues to accrue at 7% per annum on the capital balance outstanding. The agreement also provides for the proceeds of any divestment by EMC of any its business units to be applied to the immediate repayment of the capital balance outstanding.

Commenting Ian Cookson, the CEO of IDS, said "Given our previous strategic decision to divest the Haematology Division the restructuring of the amounts owed by EMC is in the best interests of IDS as it allows EMC to restructure their balance sheet and attract fresh monies".

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