COMPUMED, INC. ANNOUNCES SECOND QUARTER FISCAL 2005 FINANCIAL RESULTS
REVENUES INCREASE 16% WITH STRONG ECG SALES; MANAGEMENT CONTINUES TO ADVANCE OSTEOGRAM® BUSINESS DEVELOPMENT

Los Angeles, CA – May 17, 2005 – CompuMed, Inc. (OTC BB: CMPD.OB)- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced results for the second quarter of fiscal 2005, which ended March 31, 2005.

Total revenues for the second quarter increased 16% to $534,000, compared to $461,000 for the second quarter of fiscal 2004. Net loss for the quarter decreased 58% to $33,000, or $0.00 per share, compared to a loss of $79,000, or $0.00 per share for the same quarter of fiscal 2004. The Company's cash and marketable securities balance was $265,000 on March 31, 2005.

Total revenues for the six months ended March 31, 2005 increased 31% to $1,211,000, compared to $921,000 for the same period in fiscal 2004. Net loss for the six month period decreased 10% to $126,000, or $0.01 per share, compared to a loss of $140,000 or $0.01 per share for the same period in the prior fiscal year.

"During the second quarter, we continued to experience strong growth in our core electrocardiogram business due to shipments of new equipment, as well as increased ECG transmissions and overread services," said Chief Executive Officer Jerry McLaughlin. "Our preliminary results in sending transmissions over the Internet bode well for expanding CompuMed's ECG services to international markets."

CompuMed's OsteoGram osteoporosis diagnostics business is also well positioned for growth. During the second quarter, the company invested significant time providing its latest licensing partners with sales training and technical support. Its new partners include SourceOne Healthcare Technologies and Swissray International. SourceOne is the largest imaging distributor in the United States, and Swissray is the market leader in direct digital x-ray platforms. The OsteoGram was exhibited by Swissray at the recent Annual Meeting of the American Academy of Orthopaedic Surgeons in Washington, DC.

The OsteoGram is CompuMed's proprietary software system for osteoporosis screening, diagnosis and monitoring. Osteoporosis a global disease that affects more than 200 million people worldwide. CompuMed's strategy is 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. The OsteoGram software is also available in a workstation format via a growing network of distributors.

During the second quarter, CompuMed received its first domestic order for a DICOM-based OsteoGram workstation. It also began a clinical trial at a major teaching hospital to validate use of the OsteoGram software integrated with digital mammography equipment.

"The OsteoGram business holds great promise and newfound potential for CompuMed," added McLaughlin. "We expect our new licensing agreements and integration with mammography equipment to vastly expand the market for the OsteoGram system."

One of the primary public health issues in the field of osteoporosis is the lack of convenient testing venues. By integrating the OsteoGram with mammography equipment, women at risk can be tested for osteoporosis conveniently, at the same time and on the same equipment as their routine mammogram. The current mammography integration study is an important step in CompuMed's effort to improve access to osteoporosis screening.

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