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CMPD News CompuMed, Inc. Announces Fiscal 2005 Year-End Financial Results

LOS ANGELES--(BUSINESS WIRE)--CompuMed, Inc. (CMPD.OB) a medical informatics company leading the development of advanced imaging technology for cost effective analysis and monitoring, today announced year-end financial results for fiscal 2006, which ended September 30.

Total revenues for fiscal 2006 were $2,114,000, compared to $2,284,000 in fiscal 2005. The 7% decrease was due mainly to a one-time sale of ECG terminals to the New York State Department of Corrections in fiscal 2005, which was partially offset by increased OsteoGram sales in 2006. Net loss was $424,000, or $0.02 per share, compared to a loss of $336,000, or $0.02 per share, for the prior fiscal year. This loss was due mainly to investments in hiring new staff to support the OEM channels, product development and future growth initiatives. The Company's cash and marketable securities balance was $578,000 on September 30, 2006, compared to $571,000 on September 30, 2005.

Revenues from CompuMed's OsteoGram^® osteoporosis diagnostics increased 125% to $265,000, compared to $118,000, as a result of higher sales to OEM licensing partners. Revenues from CompuMed's core electrocardiogram (ECG) products, supplies and services decreased 3% to $1,669,000, from $1,726,000. ECG equipment and supply sales decreased 59% during fiscal 2006 to $180,000, compared to $440,000 during the prior fiscal year. This decrease was mainly due to the one-time sale of nearly 100 ECG terminals to the New York State Department of Corrections in fiscal 2005. Such a sale did not occur in 2006, as the Company’s implemented a strategy that de-emphasizes equipment sales in favor of higher margin service sales.

"We are pleased that our OsteoGram business more than doubled in FY 06," said CEO Jerry McLaughlin. "We expect this high growth trend to continue, and possibly accelerate in 2007. We spent 2006 building an OEM channel that now includes key radiology market leaders. This bodes well for the future of our OsteoGram business, and the impact of this channel on our financial performance should be significant in the next few months”.

McLaughlin continued, "We will continue to invest in CompuMed’s future by directing resources towards sales and product development issues. Our strategy is to become the leading provider of remote image analysis in cardiology and radiology."

About CompuMed:

Founded in 1973, CompuMed, Inc. (CMPD.OB) is leading the development of advanced imaging and medical informatics solutions that provide cost effective analysis and monitoring. CompuMed focuses on cardiovascular and musculoskeletal diseases, as well as other diseases associated with aging populations. Its unique expertise in telemonitoring, imaging and analysis facilitates the development of new solutions and services designed to improve healthcare provider workflow and patient care, while reducing costs. CompuMed's core products, the OsteoGram(R) and CardioGram(TM) systems, are cleared by the FDA and reimbursable by Medicare. The OsteoGram is an accurate and precise technology for osteoporosis testing. The underlying OsteoGram technology has significant cost advantages over other technologies and will be applied to a suite of value-added applications, such as following the progression of arthritic disease and diagnosing vertebral fractures and scoliosis. The CardioGram system is one of the first telecommunication networks designed to remotely interpret electrocardiograms, and is used by private practice, as well as government and corporate healthcare providers nationwide. The CardioGram delivers online electrocardiogram interpretations within two minutes of receipt, and has the additional capability to automatically provide an over-read (i.e., follow- up review) by a cardiologist. CompuMed is headquartered in Los Angeles. Visit CompuMed at www.compumed.net.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning CompuMed's plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, ability to raise capital, the availability of appropriate acquisition candidates and/or business partnerships, economic conditions, the impact of competition and pricing, capacity and supply constraints or difficulties, government regulation and other risks identified in the Company's filings with the Securities and Exchange Commission. All such forward-looking statements are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.