COMPUMED, INC. AND OREX RELEASE FIRST COMPUTED RADIOGRAPHY SYSTEM WITH INTEGRATED OSTEOPOROSIS DIAGNOSTICS
DICOM OsteoGramŽ Now Available With Industry-Leading CR Platform

LOS ANGELES, July 6, 2004 -- CompuMed, Inc. (CMPD.OB), a medical informatics company serving the healthcare community with diagnostic software solutions, today announced that the DICOM version of its OsteoGram system is available as a value-added component of computed radiography (CR) platforms sold by Orex Computed Radiography. Orex is a global leader in the development of filmless medical imaging equipment.

CompuMed's OsteoGram is a patented software application for the cost-effective diagnosis of osteoporosis, a "silent" degenerative disease that affects more than 44 million Americans. In 2003, CompuMed and Orex announced a licensing agreement to integrate the OsteoGram software into Orex workstations. Orex is an industry leader in the healthcare industry's shift from film-based to digital radiography platforms. Such platforms represent a high growth market in the global imaging field, as hospitals, clinics and physicians' offices replace older, analog systems in an effort to eliminate film costs, messy chemicals and darkrooms.

"I am pleased that the OsteoGram is now available for sale as part of the Orex CR system," said CompuMed CEO Jerry McLaughlin. "Clinicians can now take advantage of the workstation consolidation provided by the combination of the two technologies, that together eliminate the need for redundant diagnostic equipment, computers and specially trained staff."

CompuMed and Orex have been working since the fall of last year on product integration to offer a system that reduces labor costs. When the operator of an Orex CR system inserts the specially designed OsteoGram cassette into the CR reader, the program is automatically launched. Seconds later, a Bone Mineral Density (BMD) report is presented. Low BMD is the marker for osteoporosis.

"CompuMed looks forward to working with Orex in global markets," McLaughlin added. "We jointly displayed the new enhanced CR workstation product at the recent ChinaMed Expo in Beijing. In addition, Orex's distribution agreement with the Medical Solutions Group of Siemens, LTD., China will assist our penetration into the Chinese market for digitally-based osteoporosis testing, which serves more than 125 million post menopausal women at risk."

About CompuMed:

Founded in 1973, CompuMed, Inc. (OTC Bulletin Board: CMPD) is a leading provider of computer-aided telemedicine and diagnostics technology. The company's core products are the OsteoGramŽ 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 also has the capability to automatically provide an over-read (i.e., follow-up review) by a cardiologist. CompuMed is in Los Angeles. Visit CompuMed at www.compumed.net or call (310) 258-5000.

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