iCAD Expands Board of Directors; Appointments of Farley, Brem and Sklaroff Strengthen Board for Company's Future Growth.

Business Editors/Health/Medical Writers

NASHUA, N.H.--(BUSINESS WIRE)--May 13, 2004

iCAD, Inc. (Nasdaq:ICAD), which designs, develops and markets Computer Aided Detection (CAD) imaging technology and systems for the early detection of breast cancer and other medical applications, today announced the addition of George Farley, Rachel Brem, M.D. and Herschel J. Sklaroff, M.D., to its Board of Directors. All three appointments are effective immediately. Dr. Brem's term runs through 2005 and Mr. Farley's and Dr. Sklaroff's terms run through 2006.

"These additions bring unique and important perspectives to iCAD's Board and further position and strengthen the Company for expected future growth," President and Chief Executive Officer W. Scott Parr said. "Dr. Brem and Dr. Sklaroff bring with them a wealth of experience in the health care sector, while George Farley's financial and public company director experience will be invaluable to the Company. Their presence on the Board will continue to ensure the strong, independent governance of our organization."

Mr. George Farley is an experienced financial consultant with extensive experience both in senior finance management and as a corporate director. Mr. Farley, who currently is a senior financial consultant, served as Chief Financial Officer and Director for Talk America, Inc. and was an integral member of the team that created over $2 billion of shareholder value. He previously held the position as National Director, Managing Partner of BDO Seidman LLP where he specialized in Capital Formation and Mergers and Acquisitions and participated in over 200 transactions in that time. In addition to his service as director at Talk America, he has held directorships at Preserver Insurance Group, Acorn Holding Corporation, D&K Charitable Foundation and Olympia Leather, Inc.

Dr. Rachel Brem has extensively published in topics related to breast cancer, and specifically in her areas of interest which are new technologies for the earlier diagnosis of breast cancer. She is nationally and internationally recognized in her field. Dr. Rachel Brem is the Director of Breast Imaging and Intervention, Professor of Radiology and the Vice-Chairman in the Department of Radiology at The George Washington University Medical Center. Dr. Brem completed her undergraduate studies at Brandeis University followed by medical school at Columbia University where she graduated with honors. Dr. Brem completed her Diagnostic Radiology Residency as well as MRI and Breast Imaging Fellowships at the John Hopkins Medical Institutions. Dr.Brem's research and clinical interest includes Minimally Invasive Breast Biopsy as well as New Technologies for the Earlier Diagnosis of breast cancer including Computer Aided Detection, Nuclear Medicine Imaging of the Breast as well as Electrical Impedance Imaging of the Breast.

Dr. Herschel J. Sklaroff is a recognized clinician and teacher of clinical medicine and cardiology. After receiving his undergraduate and medical degrees from the University of Pennsylvania, he served his internship, medical residency as chief medical resident, and residency in cardiology as chief resident of cardiology at The Mount Sinai Hospital of New York City. Dr. Skarloff embarked on a career in private medical practice, and continued his passion to expand the benefits of The Mount Sinai by serving in many capacities. He was appointed as Ward Chief at Elmhurst City Hospital, an affiliate of The Mount Sinai Hospital, and served for in this role for eleven years. He then served as Chief of General Medicine and then Chief of Medical Consultation Services at The Mount Sinai Hospital for thirteen years. Dr. Sklaroff is currently involved in the establishment of the new Diagnostic and Preventive Medical Center at The Mount Sinai Hospital.

The appointments of Mr. Farley, Dr. Brem and Dr. Sklaroff increase the number of Company directors to nine, and the number of outside directors to five. They join current directors James Harlan, Executive Vice President and Chief Financial Officer of HNG Storage Company; Maha Sallam, Executive Vice President of iCAD, Inc.; Elliot Sussman M.D., President and CEO of Lehigh Valley Hospital and Health Network; Robert Howard, Chairman of Ionatron, Inc.; Steven Rogers, Chief Scientific Officer of iCAD, and W. Scott Parr, the company's President and CEO.

About iCAD, Inc.

iCAD develops, engineers, manufactures and markets computer aided detection (CAD) products for the early detection of breast cancer and other health-care related applications. Early detection of breast cancer can save lives and often permits less costly, less invasive and less disfiguring cancer treatment options than when the cancer is detected at a later stage. Computer-aided detection from iCAD can detect 25% of breast cancers, an average of 14 months earlier than screening mammography alone.

iCAD is the only independent, integrated digitizer hardware and CAD software company offering computer aided detection solutions. As such, iCAD is able to reduce costs at each step in the CAD product design, production and assembly process. The Company believes its vertical integration of CAD and hardware development results in better integration of software and film digitizer components, lower production costs and reduced administrative overhead. These achievements have allowed iCAD to progressively enhance its CAD product line, while reducing the costs of CAD to many customers and allowing more women to realize the benefits inherent in the early detection of breast cancer.

On December 31, 2003, iCAD merged with and acquired CADx Systems, Inc. and its parent company Qualia Computing, Inc., bringing together two of the three companies approved by the US Food and Drug Administration (FDA) to market computer aided (CAD) systems for the detection of breast cancer in the United States. The Company is headquartered in Nashua, New Hampshire and its common stock is listed on The Nasdaq Stock Market under the symbol "ICAD". More information on iCAD's products can be found at www.icadmed.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence, increased competition, customer concentration and other risks detailed in the Company's other filings with the Securities and Exchange Commission. The words "believe", "demonstrate", "intend", "expect", "estimate", "anticipate", "likely", and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release.