Exhibit 99.2

BOULDER, CO December 30, 1998 - Image Guided Technologies, Inc. (BSE:  IGK)
announced that it has signed an asset purchase agreement for the sale of the
orthopedic and general instrument business units of IGT's subsidiary, Brimfield
Precision Inc., to MedSource Technologies, Inc.  The Purchase price is $6
million in cash plus the assumption of certain liabilities, subject to
adjustment.  The closing is contingent upon satisfaction of certain conditions
and is expected to occur by mid-February.

Paul Ray, President and CEO said "The execution of the asset purchase agreement
with MedSource represents an important milestone for IGT.  The proceeds from
this transaction, when closed, will be used to reduce debt and associated
interest expense.  In addition to having a positive financial impact on the
Company, the divestiture of these business units will allow IGT and its
remaining minimally invasive surgical instrument business unit, located in
Springfield, MA, to more effectively focus on its core business of image guided
surgery products."

Image Guided Technologies designs, develops, manufactures and markets products
for real-time, precise, free-hand, localization of points in 3D space. In
medical applications, FlashPoint determines the position of specially designed
surgical instruments relative to a patient's anatomy and CT or MR images during
Image guided surgical procedures. In industrial applications such as parts
inspection and motion tracking, the Company's Pixsys localizer measures the
position or shape of objects in 3D space, Brimfield Precision, Inc. is an
ISO9001 certified manufacturer of general and minimally invasive surgical
instruments and orthopedic implants.  

Statements in this release that are not strictly historical may be
"forward-looking" statements, which involve risks and uncertainties. These
include, but are not limited to, potential fluctuations in operating results,
bank debt, dependence on few customers, technological changes protection of
intellectual property rights, competition, regulation by the FDA, risk of
product liability claims, possible changes in healthcare regulation, shortages
of labor and dependence on key management and technical personnel. See the
Company's most recent reports on Form 10-QSB and Form 10-KSB.