Exhibit 99.1

For Immediate ReleaseFor more information:

Contact: Michael Doherty

Phone:949-673-1907

Email:mdoherty@trestlecorp.com

TRESTLE HOLDINGS INC. ANNOUNCES SECOND QUARTER RESULTS

Revenues and Net Loss Decrease from Prior Year

IRVINE, Calif., August 9, 2005 - Trestle Holdings, Inc. (OTCBB:TLHO - News), a supplier of digital imaging systems for pathology and telemedicine applications today reported financial results for the quarter ended June 30, 2006.

Revenues for the second quarter of 2006 were $541,000, a decrease from $866,000 in the same quarter of 2005. The decline in sales resulted from a decrease in MedMicro™ and MedReach™ sales partially offset by an increase in software support revenues. Gross profit for the second quarter of 2006 increased to $242,000 compared to gross profit of $222,000 for the comparable quarter of 2005.

Operating expenses for the second quarter of 2006 were $827,000 compared to second quarter of 2005 operating expenses of $2.018 million. Second quarter of 2006 operating expenses consisted of $239,000 of research and development expense and $588,000 of selling, general and administrative expense. Second quarter of 2005 operating expenses consisted of $535,000 of research and development expense and $1.483 million of selling, general and administrative expense.

Interest income and other, net was $89,000 for the second quarter of 2005 while there was no interest income and other in the same quarter of 2006.

Net loss was $585,000, or $.07 per share, for the second quarter of 2006, compared to net loss of $1.707 million, or $.21 per share for the same quarter of 2005.

Trestle Holdings Inc. is a supplier of digital imaging systems and services for pathology, drug safety and discovery. The company's products link dispersed users with each other, information databases, and analytical tools. This improved integration drives cost savings and process efficiencies, enables improved pre-clinical and clinical phases of research and development for new drugs, and enhances patient care.

Trestle's digital imaging products have the potential to transform the pathologist work environment by capturing digital images of tissue samples and enabling the sharing, archiving, and analysis of these images. The company's live microscopy products allow multiple physicians and scientists to remotely view, navigate, and share high-fidelity microscope images at sub-micron resolution over standard internet connections, in real time. The company's slide-scanning and imaging products perform high-speed, whole-glass slide digitization for virtual microscopy applications. Trestle's slide-scanning products facilitate image analysis, data management, digital workflow, and data association applications for clinical and research customers.

Telemedicine enables the remote delivery of patient care using integrated health information systems and telecommunications technologies. Trestle's integrated telemedicine products allow scientists, physicians and other medical professionals around the world to service more patients. Trestle's telemedicine products use proprietary software and standard computer and medical hardware to facilitate remote examination, diagnosis, and treatment.

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This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. For these statements, we claim the safe harbor for "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, our ability to expand our product offerings and any transition to new products, product quality and availability, any change in business conditions, changes in our sales strategy and product development plans, competitive pricing pressures, continued market acceptance of our products, name recognition of our products, delays in the development of new technology, intellectual property and proprietary rights may not be valid or infringe the rights of others, changes in customer buying pattern issues, one-time events and other important factors disclosed previously and from time to time in our filings with the Securities and Exchange Commission. These cautionary statements by us should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by us. We cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. In addition, readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "anticipates," "intends," "targets," "projections," or the like to be uncertain and forward-looking. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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