Exhibit 99.1

             Mark Casner Named President of Digirad's DIS Subsidiary


    POWAY, Calif.--(BUSINESS WIRE)--Sept. 15, 2005--Digirad
Corporation (NASDAQ:DRAD), a leading provider of solid-state medical
imaging products and services to physician offices, hospitals and
imaging centers, announced today that Mark L. Casner has been named
President of the company's Digirad Imaging Solutions (DIS) leasing
services subsidiary.
    "Mark Casner has assembled an impressive record of accomplishment
over his 27-year career in the healthcare services industry. Of
particular significance, during the past ten years Mark has served
with distinction in a progression of senior management positions at
companies providing medical imaging services. This directly relevant
industry experience makes him particularly well-equipped to assume his
new responsibilities as President of Digirad's DIS subsidiary," said
Gary Burbach, Chief Executive Officer of Digirad.
    "DIS' strong position in nuclear cardiology imaging gives us a
solid base on which to build. Digirad's Board is confident that Mark
has the leadership skills, industry knowledge and relationships to
successfully execute our plan to continue to expand this business,"
Burbach said.
    Since 2003, Casner was President and Chief Operating Officer of
DMS Imaging, Maple Grove, Minnesota, which offers mobile diagnostic
services to more than 450 healthcare facilities nationwide. During his
tenure, Casner increased profitability, improved customer service and
employee retention, expanded into new geographic regions, and
negotiated new agreements with customers and vendors that enhanced
opportunities for growth and profitability.
    From 1998 to 2003, Casner served in positions of increasing
responsibility with Radiologix, Inc., Dallas, most recently as Senior
Vice President, Operations. In this position he oversaw a $185 million
imaging business serving 45 outpatient facilities and 11 hospitals
with a staff of more than 125 radiologists. Prior to its acquisition
by Radiologix, he was Chief Operating Officer of Community Radiology
Associates, Rockville, Maryland, and earlier served as President of
Anderson Management, Arlington, Virginia, a medical practice
management and strategic consulting firm.
    Casner, 49 years old, began his career in the healthcare services
industry in 1978. He earned a B.A. in Psychology from Miami University
of Ohio in 1977, an M.A. in Human Development from the University of
Maryland in 1979, and an M.B.A. from Marymount University in 1983.
    In accordance with NASDAQ Marketplace Rule 4350, Casner was
granted an inducement stock option covering 200,000 shares of common
stock as a material inducement to his becoming an employee of Digirad.
The grant is contingent upon and shall be effective as of the date
Casner becomes an employee of Digirad. These options were granted
under the Digirad Corporation 2005 Inducement Stock Incentive Plan and
without stockholder approval pursuant to NASDAQ Marketplace Rule
4350(i)(1)(A)(iv) with the following terms: each option has been
classified as a non-qualified stock option, has an exercise price
equal to the fair market value on his start date, has a ten-year term,
and vests as to 25% of the award on the anniversary of his start date
and as to 1/48th of the award each month thereafter, subject to
continued employment through each relevant date.

    About Digirad

    Digirad Corporation develops, manufactures and markets
solid-state, digital gamma cameras to hospitals, imaging centers and
physician offices. Digirad offers a comprehensive line of solid-state
nuclear gamma cameras that produce a high-quality image for use in the
detection of many medical conditions, including cardiovascular
disease. Digirad's cameras are unique as their lightweight and compact
design allows them to fit easily into small office spaces. Digirad's
wholly owned subsidiaries Digirad Imaging Solutions and Digirad
Imaging Systems offer a comprehensive and mobile imaging leasing and
services program for physicians who wish to perform in-office nuclear
cardiology procedures but do not have the patient volume, capital or
resources to justify purchasing a gamma camera. For more information,
please visit www.digirad.com. Digirad(R) and Digirad Imaging
Solutions(R) are registered trademarks of Digirad Corporation.

    Forward-Looking Statements

    Digirad cautions that statements included in this press release
that are not a description of historical facts are forward-looking
statements. You can identify these statements by the fact that they do
not relate strictly to historical or current facts and use words such
as "anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe" and other words and terms of similar meaning in connection
with a discussion of future operating or financial performance or
events. Examples of such statements include the statements regarding
Digirad Imaging Solution's position within the mobile nuclear
cardiology imaging business and our plans to expand that business and
whether Mr. Casner's background and experience will be conducive to
achieving such expansion. The inclusion of these and other
forward-looking statements should not be regarded as a representation
by Digirad that any of its plans will be achieved. Actual results may
differ materially from those set forth in this press release due to
the risks and uncertainties inherent in Digirad's business including,
without limitation: the ability of Digirad to effectively market, sell
and distribute its imaging systems, and services given its limited
capabilities in these areas; Digirad's ability to attract and retain
key executives, qualified managers, engineers and imaging
technologists; and other risks detailed in Digirad's Securities and
Exchange Commission filings, including its Annual Report on Form 10-K
and other reports filed with the Securities and Exchange Commission.
Given these uncertainties, readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
the date hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement and Digirad undertakes no
obligation to revise or update this press release including the
forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to update the reasons actual
results could differ materially from those anticipated in these
forward-looking statements, even if new information becomes available
in the future.



    CONTACT: Digirad Corporation
             Todd Clyde, CFO, 858-726-1600
             ir@digirad.com
              or
             Investor Contact:
             Neil Berkman Associates, 310-277-5162
             info@BerkmanAssociates.com