COMPUMED, INC. ANNOUNCES LATEST STATEWIDE CONTRACT TO PROVIDE REMOTE ECG SCREENING
Company Joins Forces With Prison Health Services, Inc. to Screen Wyoming Department of Corrections Inmates

LOS ANGELES, Sept. 20 2005 -- CompuMed, Inc. (CMPD.OB) -- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced it has signed a one-year agreement with Prison Health Services, Inc. (PHS) to provide the Wyoming Department of Corrections with electrocardiogram (ECG) remote interpretation systems and services at its four sites.

Under the terms of the contract, CompuMed will serve as a new PHS value-added partner, providing remote cardiac screening for detainees at Wyoming correctional facilities. Screenings will be performed using CompuMed's CardioGram system. Based in Brentwood, Tennessee, Prison Health Services is a leading provider of comprehensive healthcare services for correctional systems, serving more than 380 jail and prison sites nationwide.

"We are delighted to join Prison Health Services' efforts to provide cost-efficient, quality healthcare for the Wyoming Department of Corrections," said Jerry McLaughlin, CompuMed's CEO. "We believe this agreement is a significant step forward in building a long term relationship with PHS."

CompuMed's traditional core business is providing remote ECG interpretation terminals and related services to medical facilities that may not have access to physicians trained and qualified to interpret ECG results. Customers for the Company's CardioGram system are typically correctional facilities, ambulatory surgery centers, occupational health clinics and physicians' offices. The system reduces healthcare costs significantly by providing remote cardiac screening at the point-of-care. Another advantage is an optional feature that automatically sends ECG results to a trained cardiologist for an overread when the results are abnormal.

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. CompuMed is headquartered 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 CompuMed's plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact. 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. 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 by law.

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