COMPUMED FILES WITH FDA TO MARKET OSTEOPOROSIS TEST TECHNOLOGY.

CompuMed, Inc. (NASDAQ:CMPD), Manhattan Beach, Calif., has filed an application with the U.S. Food and Drug Administration for marketing clearance for the company's breakthrough skeletal health diagnostic testing technology. In a landmark 3-year clinical study, sponsored by Merck & Co., Inc. (NYSE:MRK) and the U.S. Public Health Service, the CompuMed OsteoGram achieved the highest osteoporosis prediction score of any bone density test ever. The first new implementation of the CompuMed technology will be in the company's Automated OsteoGram(r) 2000, which will allow any physician with access to a standard x-ray machine to perform high quality bone density tests simply by obtaining CompuMed's easy-to-use software, a PC and a desktop scanner. CompuMed will be exhibiting a full working model of this new system at the American Society for Bone and Mineral Research and International Bone and Mineral Society Meeting this week at the Moscone Convention Center in San Francisco. "What we are creating now are diagnostic tests that outperform competing products, at a lower price. We have achieved this because of our use of proprietary and extremely powerful image processing techniques," stated James Linesch, President and CEO of CompuMed. "We can apply these techniques to the analysis of conventional x-ray films, thereby opening their application to millions of people conveniently and affordably. At the same time, we can apply our technologies to the analysis of digital x-ray images, allowing us to incorporate these tests into digital x-ray devices." This analysis software can also be incorporated into desktop devices that would utilize high-resolution digital detectors for bone imaging. CompuMed has performed design engineering and conducted successful feasibility testing of such a device, the Digital OsteoView 2000. The OsteoView would combine the OsteoGram 2000 software along with an ultra-stable low dose x-ray source and a filmless digital x-ray detector developed by Varian Associates (NYSE:VAR) and Xerox Corporation (NYSE:XRX). CompuMed has the worldwide exclusive rights to the Varian technology in the fields of appendicular bone mass measurement and automated arthritis detection. CompuMed is actively seeking a joint venture partner to participate in the production engineering, manufacturing and distribution of the OsteoView. CompuMed, based in Manhattan Beach, California, develops solutions to important medical problems through the use of computer technology. In addition to the OsteoGram and OsteoView, CompuMed has developed computer-aided telemedicine services for cardiology and currently provides on-line computer interpretation of electrocardiograms (ECGs) to physicians, government and corporate healthcare providers. For more information, call [phone], ext. 115.