EXHIBIT 99.1 - PRESS RELEASE




 DIOMED ACQUIRES DISTRIBUTION RIGHTS TO BREAKTHROUGH VEINVIEWER FROM LUMINETX


ANDOVER, MA, August 10, 2005, --- Diomed Holdings, Inc. (AMEX: DIO), a leading
developer and marketer of minimally invasive medical technologies, including its
patented EVLT(R) laser treatment for varicose veins, today announced that it has
acquired exclusive distribution rights to the VeinViewer(TM) Imaging System for
the sclerotherapy, phlebectomy and varicose vein treatment markets in the United
States and United Kingdom. The agreement with Luminetx includes both a $1
million phased investment in Luminetx and a grant of warrants to purchase
600,000 shares of Diomed common stock based upon the achievement of certain
milestones.

The VeinViewer(TM), cleared by the FDA in 2004, is a breakthrough patented
biomedical imaging system developed by Luminetx, Inc. of Memphis, TN. Hailed by
Time Magazine as one of the year's "Coolest Inventions," the mobile imaging
system utilizes infrared light which illuminates on a real-time basis
subcutaneous veins to an average depth of 8mm and projects their location on the
surface of the skin with an accuracy of 0.06 mm. VeinViewer(TM) is a unique
guidance tool allowing physicians to visualize the exact location and
orientation of the patient's veins, thereby providing more precise sclerotherapy
and phlebectomy procedures through increased accuracy in vein mapping and
imaging.

"We believe that Luminetx's VeinViewer(TM) will be an important adjunct to our
core EVLT(R) business and will enhance our competitive advantage in the
treatment of venous disease," stated Mr. James A. Wylie, President and CEO of
Diomed Holdings, Inc. "Additionally, as vein treatment continues its move from
the hospital to outpatient facilities and physicians' offices, we expect to
leverage our existing sales and marketing organization by offering physicians an
array of medical tools for the treatment of superficial venous disorders, from
reflux of the greater saphenous vein to unsightly spider veins."

"We are particularly pleased to be partnering with Jim Phillips and the entire
Luminetx team," added Mr. Wylie. "Jim has been described by Red Herring magazine
as a `serial entrepreneur', co-founder and past CEO of both the wireless
messaging company, Skytel and Internet imaging company, iPIX. Jim's extensive
experience coupled with Luminetx's innovative technical team, provide a proven
business partner for Diomed."

Diomed's target market for the VeinViewer(TM) encompasses physician specialties
practicing radio frequency and endovenous laser ablation of the greater
saphenous vein and its tributaries, including interventional radiologists,
vascular surgeons, general surgeons, dermatologists and dermatologic surgeons
among others. Diomed estimates that its initial VeinViewer(TM) target market of
nearly 2,000 installed laser and RF systems represents less than 15% of the
addressable market. The Company also estimates that there are between 2 and 3
million sclerotherapy and ambulatory phlebectomy procedures performed annually
in the United States.

"Diomed's leadership position in the treatment of varicose veins and Luminetx's
unique imaging technology creates a powerful team to address the treatment of
superficial venous disease," stated Mr. Jim Phillips, Chairman & CEO of
Luminetx. "We looked at several companies working in the area of peripheral
venous disease, and chose Diomed as our distribution partner because we believe
they have the winning technology." Diomed plans to display the VeinViewer(TM) at
three upcoming medical meetings this fall, including the American College of
Surgeons Annual Clinical Congress in San Francisco (October 16-20), the 19th
Annual Congress of the American College of Phlebology meeting in San Francisco
(November 10-13), and the VEITH Symposium in New York City (November 17-20). The
VeinViewer(TM) is expected to be available for general distribution in the first
quarter of 2006.

Additional information about the VeinViewer(TM) product can be found at
www.DiomedInc.com and www.Luminetx.com.


About Diomed

Diomed develops and commercializes minimally invasive medical procedures that
use its proprietary laser technologies and disposable products. Diomed focuses
on EVLT(R) laser treatment for varicose veins, photodynamic therapy (PDT) for
use in cancer treatments, and dental and general surgical applications. The
EVLT(R) procedure and the Company's related products were cleared by the United
States FDA in January of 2002. Along with lasers and single-use procedure kits
for EVLT(R), the Company provides its customers with state of the art physician
training and practice development support. Additional information is available
on the Company's website, www.evlt.com. EVLT(R) is a registered trademark of
Diomed, Inc., Andover, MA.

Safe Harbor statements under the Private Securities Litigation Reform Act of
1995: Statements in this news release looking forward in time involve risks and
uncertainties, including the risks associated with trends in the products
markets, reliance on third party distributors in various countries outside the
United States, reoccurring orders under OEM contracts, market acceptance risks,
technical development risks and other risk factors. These statements relate to
our future plans, objectives, expectations and intentions. These statements may
be identified by the use of words such as "may," "will," "should," "potential,"
"expects," "anticipates," "intends," "plans," "believes" and similar
expressions. These statements are based on our current beliefs, expectations and
assumptions and are subject to a number of risks and uncertainties. Our actual
results could differ materially from those discussed in these statements. Our
Annual Report on Form SEC 10-KSB (the "Annual Report") contains a discussion of
certain of the risks and uncertainties that affect our business. We refer you to
the "Risk Factors" on pages 22 through 37 of the Annual Report for a discussion
of certain risks, including those relating to our business as a medical device
company without a significant operating record and with operating losses, our
risks relating to our commercialization of our current and future products and
applications and risks relating to our common stock and its market value. Diomed
disclaims any obligation or duty to update or correct any of its forward-looking
statements.




For more information contact:

Diomed Holdings, Inc.                  or     Investor Relations:
Christopher J. Geberth                        Cameron Associates
Vice President Finance                        Al Palombo
877-434-6633 or 978-824-1816                  212-554-5488
investor-relations@diomedinc.com              al@cameronassoc.com