Exhibit 99.1

 Digirad Updates 2006 Guidance and Provides Initial Guidance for 2007


    POWAY, Calif.--(BUSINESS WIRE)--Jan. 11, 2007--Management of
Digirad Corporation (NASDAQ:DRAD), a leading provider of
cardiovascular imaging services and solid-state nuclear medicine
imaging products to physician offices, hospitals and imaging centers,
updated previous financial guidance for 2006 and provided initial
guidance for 2007 in a presentation today at the 25th Annual JPMorgan
Healthcare Conference in San Francisco.

    For 2006, Chief Executive Officer Mark Casner said that the
Company currently anticipates consolidated revenues at the high end of
the previously announced range of $70.7 million to $71.5 million,
consisting of DIS revenue between $49.1 million and $49.5 million and
product revenue between $21.6 million and $22.0 million; and a
consolidated loss at the low end ($7.3 million) of the previously
announced range of $7.3 million to $7.8 million, including estimated
stock-based compensation expense of $1.7 million. Casner stated that
revenue guidance for the full year of 2006 includes $2 million in
stress agent revenues Digirad received through June of 2006, when it
phased out stress agent deliveries, and noted that an evaluation of
Digirad's 2007 revenue guidance in comparison to Digirad's 2006
results should take the lack of stress agent revenue going forward
into account.

    For 2007, Casner said that the Company currently anticipates
consolidated revenues in the range of $73 million to $76 million,
consisting of DIS revenue between $50 million and $52 million and
product revenue between $23 million and $24 million; and a
consolidated loss between $1.3 million and $3.3 million, including
estimated stock-based compensation expense of $1.3 million.

    You can access the live presentation at
www.mapdigital.com/jpmorgan/healthcare07 beginning at 10:00 a.m. PST
today. After registering, select Digirad Corporation from the "Live
Webcast" link on the left side of the "Welcome" page. The webcast will
be available for replay on January 12, 2007 at the above internet
address or through the Company's website at
drad.client.shareholder.com/medialist.cfm for 90 days. Audio streams
require Windows Media or Real Player installations.

    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 high-quality images 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 subsidiary, Digirad Imaging Solutions, offers a
comprehensive, 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
our anticipated financial results for 2006 and 2007 fiscal years. 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 degree to which
personnel changes and related disruptions in our business activities
may affect Digirad's products, customers, work force, suppliers, and
our overall business prospects and operations; the degree to which
Digirad's camera systems and related services will be accepted by
physicians and hospitals or will experience reliability issues or
technical problems; the ability of Digirad to effectively market, sell
and distribute its medical devices and related services, given its
limited capabilities in these areas; Digirad's ability to manage risks
relating to product liability, warranty claims, recalls, property
damage and personal injury with respect to its imaging systems; 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
             www.digirad.com
             or
             Investor Contact:
             Neil Berkman Associates
             310-826-5051
             info@BerkmanAssociates.com