Previous experimental results have demonstrated that a PET detector module based on a 20$,times,$10$,times,$10 mm LSO block read out by a Hamamatsu S8550 APD array is able to determine the impinging position of perpendicularly incident 511–keV photons with a resolution better than 2-mm FWHM. A prototype PET demonstrator using two of these detector heads was build and evaluated. The axial and transaxial resolution measured in two-dimensional (2-D) OSEM and 2-D FBP reconstructed images is better than 1.5- and 2-mm FWHM, respectively, for radial distances less than 15 mm. A Monte Carlo simulation showed that a four-ring PET scanner based on these monolithic scintillator blocks has a sensitivity which is about 2.5 times higher than the sensitivity of a similar system equipped with detector heads using a 4$,times,$8 matrix of 2$,times,$2$,times,$10 mm LSO pixels.