DRAD Digirad Corporation

Digirad Corporation (Nasdaq: DRAD; DRADP) (“Digirad” or the “Company”), a diversified holding company with three divisions: Healthcare, Building & Construction, and Real Estate & Investments, announced today that KBS Builders, Inc. (“KBS”) has partially re-opened its Oxford, Maine plant to manufacture wall panels for the New England market, creating a new business line for KBS. Also, KBS is studying ways to increase its modular manufacturing output capability in 2021. Our new website was launched yesterday at www.kbsbuildersinc.com with updated content on the rationale for modular construction, a gallery of recent projects, as well as improved functionality for requesting a plant tour and contacting our sales team.

The Oxford plant, an approximately 90,000 sq. ft. facility, was idle when it was purchased by Digirad Corporation in April 2019. One of the ancillary buildings at this plant was recently retrofitted and upgraded in order to be able to produce structural wall panels. Panelized wall assemblies standardize the construction process and give contractors cost predictability and a higher level of project control versus on-site construction. Production of structural wall panels for multiple clients commenced at this plant in September and deliveries are scheduled to be completed before year-end. EdgeBuilder, KBS's sister company and a leading manufacturer of wall panels for the upper Midwest, provided design support and operational oversight for these projects.

Waypoint General Contracting, a full scope property services company, is one of the clients that contracted with KBS for structural wall panels. Kieran McAllen, Principal at Waypoint General Contracting, said, "We are excited to partner with KBS and leverage their manufacturing expertise and exterior wall panel assembly for our upcoming development projects. KBS's wall panel manufacturing process and production system reduces the overall build cycle, creates schedule predictability, and significantly lowers the need for on-site, skilled labor.”

Regarding its traditional business of manufacturing building modules, KBS continues to have a sales pipeline exceeding $50 million. Production capacity at its South Paris, Maine plant is sold out for the rest of this year and bookings are starting to be made for 2021. KBS is exploring ways to increase its modular manufacturing output in 2021, including expanding its South Paris plant and fully re-opening its Oxford plant. The main building at the Oxford plant is capable of manufacturing a similar number of building modules per week as KBS’s South Paris factory. KBS’s goal is to expand its production capacity to 15-20 modules per week at some point in 2021, equating to an annualized rate of 750-1000 modules per year compared to KBS’s actual production for 2019 of approximately 230 building modules.

Jeff Eberwein, Digirad’s Chairman, noted, “With the re-opening of the Oxford plant, KBS entered the structural wall panel manufacturing business in New England, adding a new line of business for KBS. We believe KBS’s entrance into the structural wall panel business will lead to new business opportunities in commercial construction for our modular manufacturing operations. In addition, given KBS’s growing backlog and sizeable sales pipeline for full building modules at our South Paris plant, we are excited to serve our growing list of customers by expanding our production capability in 2021.”

Additionally, the Company’s Building & Construction businesses recently launched new websites to improve the user experience and drive further sales activity. Links to the websites can be found below.

KBS Builders, Inc. www.kbsbuildersinc.com

EdgeBuilder, Inc. www.edgebuilderwallpanels.com

Glenbrook Building Supply, Inc. www.glenbrooklumber.com

About Digirad CorporationDigirad Corporation is a diversified holding company with three divisions: Healthcare, Building & Construction, and Real Estate & Investments.

Healthcare Division (Digirad Health)Digirad Health designs, manufactures, and distributes diagnostic medical imaging products and services. Digirad Health operates in three businesses: Diagnostic Imaging, Diagnostic Services, and Mobile Healthcare. The Diagnostic Imaging business designs, manufactures, and sells proprietary solid-state gamma cameras. It also services the installed base of these proprietary cameras. The Diagnostic Services business offers imaging and monitoring services to healthcare providers as an alternative to purchasing equipment or outsourcing procedures. The Mobile Healthcare business provides contract diagnostic imaging, including computerized tomography (“CT”), magnetic resonance imaging (“MRI”), positron emission tomography (“PET”), PET/CT, and nuclear medicine and healthcare expertise through a convenient, mobile service.

Building & Construction Division (ATRM)ATRM Holdings, Inc. (“ATRM”) manufactures modular housing units for commercial and residential real estate projects. ATRM operates in two businesses: (i) modular building manufacturing and (ii) structural wall panel and wood foundation manufacturing, including building supply retail operations. The modular building manufacturing business is operated by KBS Builders, Inc. (“KBS”), the structural wall panel and wood foundation manufacturing segment is operated by EdgeBuilder, Inc. (“EdgeBuilder”), and the retail building supplies are sold through Glenbrook Building Supply, Inc. (“Glenbrook”). KBS, EdgeBuilder, and Glenbrook are all wholly-owned subsidiaries of ATRM, which is a wholly-owned subsidiary of Digirad.

Real Estate & Investments DivisionThis business division manages the Company’s real estate assets and investments.

Forward-Looking Statements Disclaimer Statement“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this release that are not statements of historical fact are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking Statements include, without limitation, statements regarding (i) the plans and objectives of management for future operations, including plans or objectives relating to acquisitions and related integration, development of commercially viable products, novel technologies, and modern applicable services, (ii) projections of income (including income/loss), EBITDA, earnings (including earnings/loss) per share, free cash flow (FCF), capital expenditures, cost reductions, capital structure or other financial items, (iii) the future financial performance of Digirad Corporation or acquisition targets and (iv) the assumptions underlying or relating to any statement described above. Moreover, forward-looking statements necessarily involve assumptions on the Company’s part. These forward-looking statements generally are identified by the words “believe”, “expect”, “anticipate”, “estimate”, “project”, “intend”, “plan”, “should”, “may”, “will”, “would”, “will be”, “will continue” or similar expressions. Such forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described above as a result of these risks and uncertainties. Factors that may influence or contribute to the inaccuracy of forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation, the substantial amount of debt of the Company and the Company’s ability to repay or refinance it or incur additional debt in the future; the Company’s need for a significant amount of cash to service and repay the debt and to pay dividends on the Company’s preferred stock; the restrictions contained in the debt agreements that limit the discretion of management in operating the business; legal, regulatory, political and economic risks in markets and public health crises that reduce economic activity and cause restrictions on operations (including the recent coronavirus COVID-19 outbreak); the length of time associated with servicing customers; losses of significant contracts or failure to get potential contracts being discussed; disruptions in the relationship with third party vendors; accounts receivable turnover; insufficient cash flows and resulting lack of liquidity; the Company's inability to expand the Company's business; unfavorable changes in the extensive governmental legislation and regulations governing healthcare providers and the provision of healthcare services and the competitive impact of such changes (including unfavorable changes to reimbursement policies); high costs of regulatory compliance; the liability and compliance costs regarding environmental regulations; the underlying condition of the technology support industry; the lack of product diversification; development and introduction of new technologies and intense competition in the healthcare industry; existing or increased competition; risks to the price and volatility of the Company’s common stock and preferred stock; stock volatility and in liquidity; risks to preferred stockholders of not receiving dividends and risks to the Company’s ability to pursue growth opportunities if the Company continues to pay dividends according to the terms of the Company’s preferred stock; the Company’s ability to execute on its business strategy (including any cost reduction plans); the Company’s failure to realize expected benefits of restructuring and cost-cutting actions; the Company’s ability to preserve and monetize its net operating losses; risks associated with the Company’s possible pursuit of acquisitions; the Company’s ability to consummate successful acquisitions and execute related integration, including to successfully integrate ATRM’s operations and realize the synergies from the acquisition of ATRM, as well as factors related to the Company’s business (including ATRM) including economic and financial market conditions generally and economic conditions in the Company’s markets; failure to keep pace with evolving technologies and difficulties integrating technologies; system failures; losses of key management personnel and the inability to attract and retain highly qualified management and personnel in the future; and the continued demand for and market acceptance of the Company’s services. For a detailed discussion of cautionary statements and risks that may affect the Company’s future results of operations and financial results, please refer to the Company’s filings with the Securities and Exchange Commission, including, but not limited to, the risk factors in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. This release reflects management’s views as of the date presented.

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

For more information contact:
Digirad Corporation		The Equity Group
Jeffrey E. Eberwein		Lena Cati
Chairman of the Board		The Equity Group
203-489-9501		212-836-9611
ir@digirad.com		lcati@equityny.com