COMPUMED, INC. ANNOUNCES THIRD QUARTER FISCAL 2005 FINANCIAL RESULTS
REVENUES INCREASE 20% WITH STRONG ECG SALES; OSTEOGRAM SHIPMENTS RISE ON NEW LICENSING AGREEMENTS

Los Angeles, CA – Aug. 15, 2005 – CompuMed, Inc. (OTC BB: CMPD.OB)- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced financial results for the third quarter of fiscal 2005, which ended June 30, 2005.

Total revenues for the third quarter increased 20% to $554,000, compared to $463,000 for the third quarter of fiscal 2004. Net loss for the quarter increased 28% to $51,000, or $0.00 per share, compared to a loss of $40,000, or $0.00 per share for the same quarter of fiscal 2004. The increased loss is a result of the Company's efforts to launch new sales and marketing initiatives, as well as accelerate product development. The Company's cash and marketable securities balance was $289,000 on June 30, 2005.

The Company also reported total revenues for the first three quarters of the fiscal year. Total revenues for the nine months ended June 30, 2005 increased 28% to $1,765,000, compared to $1,384,000 for the same period in fiscal 2004. Net loss for the nine month period decreased 2% to $177,000, or $0.01 per share, compared to a loss of $180,000 or $0.01 per share for the same period in the prior fiscal year.

"Revenues from our core electrocardiogram business grew 19% for the quarter and 35% year-to-date, as transmissions and requests for over-read services increased," said Chief Executive Officer Jerry McLaughlin. "We expect this trend to continue as new clients come on-line, and our efforts to secure additional partnerships with statewide correctional departments are realized."

CompuMed's OsteoGram® osteoporosis diagnostics business also achieved growth, as initial domestic orders from distributor Swissray International were shipped. In addition, deliveries to China increased in conjunction with CompuMed's recent presentation of clinical data at the 5th International Osteoporosis Symposium in Xi'an.

The OsteoGram is CompuMed's proprietary software-based solution for screening, diagnosing and monitoring osteoporosis -- a disease that affects more than 200 million people worldwide. The company has made significant progress in its strategy to license and integrate the OsteoGram software with digital (i.e., filmless) x-ray and mammography equipment from market-leading manufacturers seeking to add value to their offerings. In addition, the OsteoGram software is available in a workstation format via a growing network of distributors.

"During the third quarter, we also strengthened CompuMed's management team by recruiting industry veterans Scott Evers and Henky Wibowo to spearhead our sales and engineering departments," concluded McLaughlin. "Their expertise should help accelerate growth in our OsteoGram business by enabling CompuMed to work even more effectively with its licensing partners."

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 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 identified in the Company's filings with the Securities and Exchange Commission. All such forward-looking statements 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, except as required as law.

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