Colorado MEDtech, Inc. Consolidation Enhances Core Business Focus.

Business Editors, Health & Medical Writers

BOULDER, Colo.--(BW HealthWire)--Feb. 21, 2001

Colorado MEDtech, Inc. (Nasdaq:CMED), a Boulder, Colorado-based provider of advanced medical technology outsourcing and medical imaging products, today announced that it has consolidated the CMED Automation Division into the RELA Division as a continuation of its restructuring plan.

RELA provides advanced custom medical technology and software product development outsource services.

All future automation projects will focus exclusively on programs which can benefit from RELA's innovation and expertise in custom engineering solutions. "There will be no disruption in completing our current projects," stated Dr. Ken Taylor, Vice President and General Manager for the company's RELA Division. "We will provide value-added engineering solutions and participate in a niche segment of the medical automation market where our capabilities can make a difference to our customers."

"This restructure and consolidation process is a part of our strategic business plan as we concentrate on our two core markets, advanced medical technology outsourcing and medical imaging," said Stephen K. Onody, Chairman and CEO.

Colorado MEDtech, Inc., through its wholly owned subsidiaries and operating divisions, is a leading full-service OneSource OutSource(TM) provider of advanced medical technology outsourcing, which includes development, software, medical device communications and manufacturing services, and medical imaging, which includes critical system components and ultrasound accessories.

Forward-Looking Statements 

The statements in this news release and in the conference call that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Forward-looking statements can be identified by the use of words such as "believes," "intends," "estimates," "may," "will," "should," "anticipated," "expected" or comparable terminology or by discussions of strategy. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot assure that these expectations will prove to be correct. Such statements involve risks and uncertainties including, but not limited to, the risk that the Company's existing level of orders may not be indicative of the level or trend of future orders, the risk that the Company may not successfully complete the work encompassed by current or future orders, the risk that unforeseen technical or production difficulties may adversely impact project timing and financial performance, the risk that the management changes will not produce the desired results, the risk of potential litigation, the risks associated with regulation by the Federal Food and Drug Administration including compliance with the Quality System Regulation, the risk that acquired companies cannot be successfully integrated with the Company's existing operations and the risk that a downturn in general economic conditions or customer budgets may adversely affect research and development and capital expenditure budgets of potential customers upon which the Company is dependent. Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. These factors are more fully described in the Company's documents filed from time to time with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update publicly or revise such statements whether as a result of new information, future events or otherwise.