Exhibit 99.1

              AFP Imaging Announces Sale of Common Stock

    ELMSFORD, N.Y.--(BUSINESS WIRE)--May 3, 2006--AFP Imaging
Corporation (OTCBB:AFPC) today announced that on May 2, 2006, it had
closed on the sale of 2,777,777 shares of its common stock in a
private placement to selected institutional and other accredited
investors. The offering was priced at $1.80 per share. In conjunction
with the private placement, the Company has granted the investors
certain registration rights with respect to the resale of the shares
acquired. Gabelli and Company, Inc., the institutional brokerage
affiliate of GAMCO Investors, Inc. (NYSE:GBL), acted as the sole
placement agent.
    Proceeds from the private placement are anticipated to be used for
general corporate purposes including working capital, new product
development and, possibly, for strategic acquisitions in the medical,
dental and/or veterinary imaging equipment markets.
    David Vozick, Chairman said, "We are very pleased with the
relationship we have developed with Gabelli and Company. The new
equity investment will be utilized to fund the growth in our digital
imaging product lines. AFP continues to invest in new technologies to
support the clinical transition from analog to digital imaging, and to
maintain its competitive advantage in the rapidly expanding human and
veterinary dental imaging markets."

    AFP Imaging, based in Elmsford, NY, is involved in the development
and manufacture of digital radiography and other imaging equipment.
Through its global distribution network, the Company has branded
products in over 100,000 dental, veterinary, and medical facilities.
AFP recently announced several new product initiatives including the
Digi-Vet Equine system and an OEM agreement with Henry Schein's Easy
Dental subsidiary for the sale of its intra-oral digital x-ray sensor.

    AFP Imaging is a diagnostic imaging supplier whose products are
distributed worldwide with clinical applications for dental,
veterinary and medical professionals. In addition, industrial (NDT)
professionals also use AFP's equipment. The Company's product line and
imaging technologies are providing the gateway for future internal
growth and includes intra oral x-ray units, digital x-ray sensors,
panoramic systems, film processors and chemistry. The Company's
products are distributed worldwide under various trademarked brand
names that include AFP, DIGI-VET, DENT-X, and EVA. For additional
corporate information please visit our web sites at www.afpimaging.com
and www.dent-x.com.

    The remarks contained in this press release and presented
elsewhere by management from time to time contain forward-looking
statements, which involve risks and uncertainties, including
statements regarding the Company's plans, objectives, expectations and
intentions. The Company's actual results may differ significantly from
the results discussed in this press release or in other
forward-looking statements presented by management. Among the factors
that could cause actual results to differ materially include failure
of revenue on new products to develop as estimated, regulatory delays,
loss of existing customers, the Company's inability to meet increasing
demand for its new products, general downward trends in the Company's
industry and other risk factors as described in the Company's filings
with the Securities and Exchange Commission. The Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in
the Company's expectation or any change in events, conditions or
circumstances on which such statement is based.

    CONTACT: AFP Imaging Corporation
             David Vozick, 914-592-6100
                 or
             Gabelli & Company, Inc.
             Daniel Miller, 914-921-5193