COMPUMED, INC. ANNOUNCES THIRD QUARTER FISCAL 2006 FINANCIAL RESULTS
COMPANY INTEGRATES OSTEOGRAM® INTO LATEST PARTNER PLATFORMS

Los Angeles– Aug 14, 2006 -- CompuMed, Inc. (CMPD.OB) -- a medical informatics company serving the healthcare community with diagnostic software solutions, today announced financial results for the third quarter of fiscal 2006, which ended June 30.

Total revenues for the third quarter decreased 14% to $478,000, compared to $554,000 last year. Revenues from OsteoGram sales and services for the third quarter of fiscal 2006 decreased 62% to $20,000, from $52,000 for the same period last year. The decrease in OsteoGram sales was due primarily to a slower than expected launch and ramp-up in OsteoGram OEM partner sales. Revenues from core ECG services and products decreased 9% to $458,000, from $502,000, primarily due to a continued reduction in ECG rental income.

Total revenues for the nine months ended June 30 decreased 5% to $1,674,000, compared to $1,765,000 for the same period in fiscal 2005. The Company had a one-time sale of ECG equipment to the New York Department of Corrections in 2005 that increased 2005 revenues in the amount of $246,000. While the Company has added several new customers during 2006, these customers have not to date generated revenue as significant as the single order from the New York Department of Corrections. As the Company aggressively seeks large orders, it is also working to diversify and expand its customer base to increase revenues on a more consistent basis.

Net loss for the third quarter increased to $130,000, or $0.01 per share, compared to a loss of $51,000 for the same period last year. The net loss is a result of the aforementioned sales shortfalls and higher expenses from an investment in new staff members.

Net loss for the nine month period increased 54% to $272,000, or $0.01 per share, compared to a loss of $177,000 for the same period during the prior fiscal year.

The Company's cash and marketable securities balance was $580,000 on June 30, 2006, a 2% increase from $571,000 on September 30, 2005. Stockholders' equity increased 20% to $970,000, compared to $807,000 on September 30, 2005.

"ECG transmissions, the core segment of our ECG business, increased 6% year to date, as we renewed our relationships with several keys states, including Iowa, Nevada, Nebraska and Wyoming, and signed a new state, Mississippi, to our roster," said CEO Jerry McLaughlin. "In addition, year-to-date OsteoGram shipments have increased significantly over last year, despite launch delays by some of our licensing partners. Last quarter, we worked closely with Kodak Electronics Products Shanghai Co., LTD and OREX Computed Radiography to integrate our software with their latest digital radiographic platforms. These recent integrations demonstrate our commitment to our partners and the confidence that CompuMed has in its ability to deliver OsteoGram sales in calendar 2006."

McLaughlin continued, "To support our efforts in growing the OsteoGram side of our business, we are making a change in our sales management. We expect this near term change to enhance current relationships, secure additional partners and position the company for strategic market growth and opportunities."

About CompuMed:

Founded in 1973, CompuMed, Inc. (CMPD.OB) 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.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company'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: Susan Tellem, +1-310-479-6111, ext. 16, stellem@tellem.com