July 24, 2008

New Computer Assisted Diagnostic Tests for Ovarian Cancer, Cervical Cancer and Endometrial Cancer to Be Jointly Developed By Health Discovery Corporation and DCL Medical Laboratories

Health Discovery Corporation (OTCBB: HDVY), a leader in support vector machine (SVM) based molecular diagnostics, and DCL Medical Laboratories, LLC, Indianapolis, IN, a full-service, clinical reference laboratory, today announced the signing of a Development and License Agreement for the collaborative development and commercialization of SVM-based computer assisted diagnostic (CAD) tests for the independent detection of ovarian, cervical and endometrial cancers. These new diagnostic tests will be performed on digital images to assist pathologists in providing more accurate diagnoses on biopsy and surgical specimens. HDC shall own the developed intellectual property and DCL shall have a sole use license relating to applications and new mathematical tools developed during the course of this Agreement. The companies will share future service revenues contemplated under the Agreement.

The target development areas of ovarian, endometrial and cervical cancer represent three of the most prevalent women's health related cancers, each with significant mortality and morbidity. Through the advancing technology of pattern recognition, the new SVM-based diagnostic imaging systems are expected to improve the sensitivity of detection for endometrial and cervical cancers and significantly improve the specificity of ovarian cancer diagnosis. In addition, images and interpretative data from the new SVM-based systems will be designed for use in web based applications, thus allowing remote review, second opinions and collaborative pathologist interpretation. These new CAD-based digital pathology SVM-based algorithms could offer a faster, highly objective, and more accurate interpretation of cells to assist pathologists in making correct diagnoses for physicians and their patients.

"We are thrilled that DCL has decided to expand their SVM-based, digital pathology diagnostic development efforts in cervical cancer to now include ovarian and endometrial cancer," said Stephen D. Barnhill, MD, Chairman and CEO of HDC. "Using our patent protected SVM technology, we believe these new digital pathology screening systems will further enhance current Pap systems in the detection of cellular abnormality, as well as improve the diagnostic interpretations related to ovarian and endometrial cancers. In addition, we believe that using currently available image capturing technology, our SVM-based image analysis could be made available to assist pathologists in clinical laboratories, hospitals, academic centers and medical/pharmaceutical industries provide an accurate objective diagnostic interpretation to physicians and their patients around the world via transmission and evaluation of these digital pathology images using telepathology techniques over the Internet."

"DCL is pleased to expand our partnership with Health Discovery Corporation in the development of novel computer based imaging systems," said Dr. Michael Hanbury, President and Chief Executive Officer of DCL. "This development opportunity extends DCL's commitment to offer leading diagnostic pathology services and further demonstrates DCL's commitment to providing remarkable contributions in women's health. In recent months, DCL has transformed the company into a rapidly growing regional laboratory while forming strategic development partnerships with diagnostic companies. DCL's collective experience in anatomic and clinical pathology testing services, clinical trial services, diagnostic product development and an extensive retrospective sample library focused in women's health related cases have been strategically aligned to facilitate the commercialization of clinical diagnostic services. This partnership with HDC creates an excellent opportunity for both companies to explore novel advancements in diagnostic imaging, computer assisted diagnostics and remote pathology. We believe this expanded relationship will further the development of computer assisted image analysis and deliver significant commercial opportunities for DCL and Health Discovery Corporation."

About Health Discovery Corporation

Savannah-based Health Discovery Corporation (OTCBB: HDVY) is uniquely positioned in the field of pattern recognition technology. Through the application of its patent protected technology, HDC is a leader in SVM-based molecular diagnostic and prognostic test development in genomics and proteomics, as well as, digital image analysis in pathology and radiology. The Company's SVM and FGM pattern recognition tools have significant application potential in other sizable commercial markets such as oil exploration, financial markets, Internet search and spam, homeland security, and other areas where analysis of large volumes of complex data is required.

About DCL Medical Laboratories LLC

DCL Medical Laboratories is a full-service, regional reference laboratory offering a broad menu of services including specialty testing capabilities in molecular diagnostics. DCL also provides anatomic and molecular pathology services in global clinical trials for both pharmaceutical and medical device companies in partnership with the world's largest central laboratories and clinical research organizations. Following its recapitalization in late 2007, DCL has significantly expanded its testing capabilities and provides a unique collaborative development opportunity to expedite the development process for emerging diagnostic technologies. Focused in women's health, DCL provides over 25 years of experience in providing laboratory services and exceptional educational, assay development and clinical trial experience. DCL is committed to being a preferred medical laboratory partner providing nationally recognized diagnostic services in women's health. From its founding, DCL has maintained a personal approach to delivering innovative and consultative pathology services that empower clients and improve lives. DCL is a private company with principal equity holdings by Thompson Street Capital Partners in St. Louis.

This news release contains "forward-looking statements" within the meaning of Section 27a of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the respective management teams of HDC and DCL believe that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove correct.

DCL and HDC do not assume any obligation to update any forward-looking statements or other information contained in this document.