FOR IMMEDIATE RELEASE

Dr. A.I. Mlavsky, Chairman of Gemini Israel Venture Funds, named Chairman of Applied Spectral Imaging's Board of Directors

Dr. Mlavsky is Chairman of Gemini Israel Venture Funds and the previous Executive Director of the BIRD (Israel - U.S. Binational Industrial Research and Development) Foundation. He is also a co-founder of Tyco International, Inc. He became a member of ASI's Board of Directors following Gemini's investment in ASI in 1998.

"As a member of ASI's Board of Directors, Dr. Mlavsky's extensive international experience in industry and venture capital have already contributed significantly to our company. ASI is honored to have an individual of Dr. Mlavsky's standing as its Chairman," said Dr. H. Laurence Shaw, M.D., CEO of Applied Spectral Imaging.

"ASI offers a unique imaging platform with a technology that can distinguish between materials that appear identical. It may find application in areas such as genomics, cell biology, quality control and telecommunications. I am looking forward to taking a more active role in the company at this exciting time in its development," said Dr. Mlavsky.

Dr. Mlavsky is Chairman and Founding Partner of the Gemini Israel Venture Funds. With over $350 million under management in three funds, Gemini focuses on seed and early stage companies in the fields of Telecommunications, Data Communications, Fabless Semiconductors, Internet Infrastructure and Enterprise Software.

>From 1979 until 1993, Dr. Mlavsky was Executive Director of the BIRD Foundation where he was responsible for investments of approximately $100 million in more than 300 joint projects between U.S. and Israeli high tech companies. From 1974 to 1979, Dr. Mlavsky was Executive Vice-President of Mobil Tyco Solar Energy Corporation, a venture created to develop and commercialize a novel Photovoltaic technology initiated under Dr. Mlavsky's direction. Tyco, co-founded by Dr. Mlavsky in 1960, has annual revenues of over $28 billion. Until 1974, Dr. Mlavsky was a member of Tyco's Board of Directors and its Chief Technical Officer; in 1973, he became President and Chief Operating Officer.

Dr. Mlavsky has a First Class Honors B.Sc. degree in Chemistry (1950) and a Ph.D. in Physical Chemistry (1953) from Queen Mary College, University of London.

Applied Spectral Imaging, Ltd. (ASI) is a privately held imaging company based in Israel, with a wholly owned subsidiary in Carlsbad, California. It employs 45 people. ASI has developed and commercialized products in cytogenetics. In addition, it has brought to market SpectraView™, a general analytical imaging system which may be used in a wide range of applications and industries.

This press release contains forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the industry, changes in demand for products, the timing and amount or cancellation of orders and other risks.

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