Digital Group of Telehealth Companies - May 12, 1999 Press Conference

DIGITAL GROUP INC. AND AMERICAN MEDICAL DEVELOPMENT INC. FORM STRATEGIC ALLIANCE
Dartmouth, Nova Scotia - May 12, 1999

Digital Image FX Inc. (DIFX) and American Medical Development, Inc. (AMD), today announced that the companies have formed a strategic alliance. Under the terms of the alliance, DIFX will offer a variety of AMD medical devices and diagnostic tools. The companies will also work together to identify emerging technologies and evaluate their applicability to telemedicine and telehealth applications. Wayne Bell, Chief Executive Officer of the Digital Group, said "To accomplish an effective telemedicine solution, the telemedicine team must possess the ability to merge a wealth of expertise from various disciplines and work together. AMD is a best of breed organization with a sterling reputation. We look forward to enhancing each others abilities and resources.

The fruits of our labor will benefit our clients and more importantly the patient." The Digital Group consists of four "sister companies." Digital Image FX (Virtual Reality, robotics, software & Internet applications), Digital Architects (ergonomics and structural design for medicine and telemedicine), Digital Telehealth (telemedicine consulting on medical/legal issues, telemedicine training) and the Artificial Reality Testing Integration and Communication (ARTIC) Lab (Telemedicine Research and Development). Mark VanderWerf, president of AMD said he looks forward to working more directly with Digital FX and its sister companies. The two companies have had an informal relationship for over two years and AMD continues to be impressed by the technical experience and innovation shown by Digital FX. This alliance is also a natural extension of AMD's expanding commitment to it's Canadian partners and customers. AMD, based in Lowell, Mass., is the world's leading supplier of telemedicine peripherals and devices with product installations in more than 700 sites spanning 22 countries worldwide.

AMD's telemedicine products and services include scopes, cameras, and monitors for every telemedicine application as well as consultation, installation, training and technical support. AMD has branch offices in Austin, Texas, Minneapolis, Minn. and Sydney, Australia. More information on AMD is available on the AMD Web site at www.americanmeddev.com http://www.americanmeddev.com . The Digital Group is based in Halifax, Nova Scotia. In May 1997, the Prime Minister of Canada opened their Augmented Reality Testing Integration and Communication (ARTIC) Lab as Canada's first Center for the commercial development of emerging and enabling technologies.

Together with their partners, they provide a complete range of telemedicine solutions. Formal relationships have been developed with numerous Universities and Research Centres, the USAF (testing of satellite telecommunication) and NASA. The Digital Group and its agents are located in Halifax, Ottawa, Calgary and Taiwan. Additional information can be found on the World Wide Web at; www.telehealth.ca or www.digital-fx.ca For information, contact:

Wayne Bell, The Digital Group (902) 461-4883 e-mail: wbell@telehealth.ca

Josh Abrams, AMD (978) 937-9021 e-mail: jabrams@americanmeddev.com