Exhibit 99.1

  AFP Imaging Executes Agreement to Acquire QR, srl, A Leading Edge,
                    3D Imaging Technology Company

    ELMSFORD, N.Y.--(BUSINESS WIRE)--Feb. 27, 2007--AFP Imaging
Corporation (OTCBB: AFPC.OB) today announced that it has entered into
a definitive Agreement to acquire Quantitative Radiology, srl. ("QR")
of Verona, Italy. QR is the original global supplier for
state-of-the-art, in-office 3D dental computed tomography (CT). QR
uses an imaging technology that features a cone shaped beam (a CBCT
scanner) of x-rays. Currently, AFP through its Dent-X division is
their exclusive scanner distributor in North and South America,
excluding Brazil. Upon closing, AFP will integrate the R&D and
manufacturing activities as well as manage the world-wide distribution
of all QR products and software. QR has internally developed and owns
its proprietary, image reconstruction algorithms and software. The
closing is scheduled to take place in approximately the next thirty to
forty-five days.

    The scanner is known as the NewTom 3G, a third generation
evolution, capable of capturing and displaying low dose,
three-dimensional (3D) digital images. QR was founded in 1989. Over
the past ten years there have been approximately 500 various QR cone
beam units installed, or roughly half of the total world-wide sites in
use today. This includes 91 units in North America. NewTom images are
enhanced CT scans of the cranial anatomy, including the jaw and teeth.
They are a dynamic improvement over historical two dimensional,
general-purpose x-ray films and panoramic film images. The NewTom 3G
can replace outsourced, higher radiation, hospital CT scans that
dentists had to rely on for many years. The NewTom 3G system is a step
forward for Ear, Nose and Throat (ENT) and dental specialists
including Implantologists, Orthodontists, and Oral surgeons, among
others. They provide the clinician with more clarity and information
when analyzing and diagnosing a patient's dental condition and jaw
structures. Clearly, AFP believes the dental and ENT profession has
embraced QR's technology. The dentist's incentive to purchase a NewTom
3G CT system is that it will allow for more control over a quicker
in-office completion of the prescribed procedure and treatment. The
financial return to the professional who leases or purchases a NewTom
3G should be realized in approximately one to two years, depending on
the number of scans performed per month. For the patient, a cranial CT
scan in the hospital involves unnecessary higher dose radiation
exposures, less patient convenience and often with higher costs.

    David Vozick, Chairman said, "AFP views this acquisition as an
opportunistic breakthrough to bring the Company to the ultimate level
of today's medical technology. In the last ten years, the dental
profession has begun to transition from x-ray film to digital sensors
that replace film. AFP participates in this trend with the prior
development and sales of Dent-X's EVA digital sensor. Approximately
twenty five percent of domestic general dental practices employ
digital x-ray sensors and computer imaging. With the acquisition of
QR, AFP has become one of only five major manufacturers, in the world,
of specific dental or ENT office CBCT x-ray systems. Now that this
advanced medical technology is affordable to the clinician and patient
alike, we believe that the rate of adoption will quickly accelerate.
We are at that starting point, right now, with respect to 3D x-ray
imaging. With QR's technology, AFP wants to be properly positioned to
realize significant and rapid growth in revenues and earnings in the
coming years. QR is also an excellent resource for the Company to
continue proprietary software development for a variety of digital
products."

    QR manufactures the NewTom 3G in Verona, Italy and has
distributors throughout the world. The NewTom 3G scanners are already
market leaders in Europe and Japan. They also have FDA approval. Cone
Beam Imaging equipment retails to the imaging professional between
$180,000 and $225,000. AFP expects to continue to invest in the
expansion of QR's design efforts including software development for
additional applications. It is important to note that while finalizing
the acquisition, AFP and QR have also collaborated to develop and
publicly introduced this week, another new model CBCT scanner, at the
nationally attended Chicago Mid Winter dental trade show. This new
vertical generation model, the "VG", with a nine inch field of view,
features patient positioning while standing, seated or in a
wheelchair. The primary benefit from vertical patient positioning is a
smaller footprint for the equipment where office space is a
consideration. Therefore, AFP will be the only supplier in the world
with two CBCT models featuring horizontal or vertical patient
positioning to meet the exacting diagnostic needs suitable for the
patient. Elderly, infirm or non-ambulatory trauma patients or small
children can best be examined and imaged while lying down on the
supporting scanner table. Patient positioning in this modality
maximizes image sharpness for those patients unable to comfortably
stand still.

    Donald Rabinovitch, President said, "Approximately 10,000
conventional, two dimensional panoramic x-ray units are sold each
year, worldwide. Four thousand new units are sold in North America and
the balance in the rest of the world. Approximately 75,000 are
installed in the USA and all are candidates for upgrading to 3D
imagers. We expect AFP to significantly participate in the inevitable
shift from analog pans towards cone beam, 3D x-ray examinations for
dental implants and other procedures. It is estimated that the market
for CBCT equipment, worldwide, over the next four to five years to be
between 7,000 to 10,000 units or $ 1.5 billion using current average
retail prices. Adding cone beam technology under our corporate
umbrella opens the door wider to other related medical applications
besides the dental specialist or oral surgeon. Since the QR scanner
can cover up to a single, twelve-inch field of view, another important
application for its use is in Ear, Nose and Throat (ENT) examinations.
There are about 9,000 doctors in the US who are ENT Board certified.
These professionals can utilize in-office CT scans that can cover the
anatomy from the bridge of the nose down to the larynx area below the
jaw. AFP has already begun to deliver units for in office ENT
applications and will aggressively pursue this opportunity as well as
investigating other potential medical uses besides ENT and dentistry.
We will entrepreneurially analyze a variety of potential clinical
applications, including image guided surgery suitable for this
technology."

    Dr. Roberto Molteni, AFP's Executive Vice President of Technology
said, "We are very excited by this opportunity to expand our Dent-X
line of digital imaging products with sophisticated Cone Beam Computed
Tomography. It is a major step forward for AFP and is quickly becoming
the diagnostic tool par excellence in dentistry plus in other
specialties. The combination of QR's early market leadership position,
innovative technology know-how and AFP's global marketing skills will
make AFP an important factor in the worldwide CBCT marketplace. The
addition of the QR engineering staff is of significant value to the
future growth of AFP's overall technology base, software development
and other new product introductions. We would expect AFP will now
become an international source of sophisticated digital imaging
systems. Development of the necessary three dimensional reconstruction
software is truly a barrier to entry for other possible competitors."

    AFP Imaging is a diagnostic imaging supplier whose products are
distributed worldwide with clinical applications for dental, medical
and veterinary professionals. The company's quality assurance program
is ISO 9001 certified, an international standard. The company's
digital imaging technologies and product lines are providing the
gateway for future internal and external growth. Through its global
distribution network, the Company has produced branded products
installed in approximately 100,000 dental and medical facilities. Each
site serves as a reference point for future user upgrades of
equipment. The company's products are distributed under various
trademarked brand names that include AFP, 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, Chairman or Donald Rabinovitch, President
             914-592-6100
             www.afpimaging.com or www.dent-x.com