COMPUMED, INC. ANNOUNCES FIRST QUARTER FISCAL 2004 FINANCIAL RESULTS
OsteoGram(R) Revenue Bolstered by Sales in Emerging Asian Markets

Los Angeles, CA – Feb. 17 , 2004 – -- CompuMed, Inc. (OTC BB:CMPD.OB) -- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced fiscal 2004 results for the first quarter, which ended December 31, 2003.

Total revenues for the first quarter were $460,000, compared to $452,000 for the first quarter of fiscal 2003. Net loss for the quarter was $61,000, or $0.00 per share, compared to a loss of $147,000, or $0.01 per share for the same quarter of fiscal 2003. The Company's cash, cash equivalents and marketable securities balance was $221,000 on December 31, 2003.

"I am pleased to report the continuing trend towards profitability as we reduced our loss by 60 percent compared to the same quarter last year," said CompuMed's CEO, Jerry McLaughlin. "The slight reduction in our electrocardiogram (ECG) business was more than offset by a 314 percent rise in OsteoGram(R) sales, mainly from Asia, where the Company focused much of its distribution-related efforts for the past year."

During the quarter ending December 31, 2003, management made significant progress implementing new strategic partnerships with Orex Computed Radiography and Medstrat, Inc. These partnerships were formed to enhance distribution and product development of CompuMed's recently introduced DICOM (Digital Communications and Imaging in Medicine) standards-based version of the OsteoGram, which provides a low-cost, software-based solution for the screening, diagnosis and monitoring of osteoporosis. DICOM is the established information standard that allows the new generation of digital imaging equipment to interconnect. Management recognizes the need to optimize CompuMed's position with respect to this high growth segment of the medical imaging market, and is working with leading vendors worldwide to incorporate the DICOM OsteoGram into their digital x-ray equipment as a licensed, value-added component.

Orex, an emerging leader in the field of computed radiography (CR), introduced the DICOM version of the OsteoGram last December at the Annual Meeting of the Radiological Society of North America (RSNA). The DICOM OsteoGram is embedded in the workstation of the Orex CR, offering clinicians fully automated osteoporosis testing utilizing Orex's specially designed x-ray cassette. Orex is currently in the process of training its global distribution network on the features and benefits of the DICOM OsteoGram system.

Medstrat is Fuji Medical's largest distributor of CR products in the U.S. The company has coupled the Fuji SmartCR(TM) platform with a unique server system to offer a complete digital imaging solution for the orthopedic office market. CompuMed is currently integrating its OsteoGram software on the Medstrat system as a licensed, value-added component. The combined product will be launched at the March Annual Meeting of the American Association of Orthopaedic Surgeons in San Francisco.

"The alliances we have developed with our initial partners have progressed at a rapid rate, and I am highly encouraged with preliminary customer feedback from recent trade shows in the U.S. and Europe," McLaughlin further stated. "Integrating our DICOM OsteoGram with the Orex CR will bring 'workstation consolidation' to imaging departments to help achieve labor saving efficiencies and improved utilization of existing imaging platforms. In addition, we are working diligently to develop future applications that will complement our efforts in the field of bone disease."

About CompuMed:

Founded in 1973, CompuMed, Inc. (BB:CMPD) is a leading provider of computer-aided telemedicine and diagnostics technology. The company's core products are the OsteoGram(R) and CardioGram systems. The OsteoGram, which is cleared by the FDA for commercial use, is an accurate and precise technology for low-cost osteoporosis testing. The CardioGram system remotely interprets electrocardiograms and is used by private practice, government and corporate healthcare providers nationwide. The CardioGram has the additional capability to automatically provide an over-read 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 plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical facts. 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 defined in this document. All such forward-looking statements whether written or oral, and whether made by or on behalf of the Company are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

CONTACT: Erik Deutsch - Tellem Worldwide, +1 (310) 479-6111 x.15, edeutsch@tellem.com