- Assists in Conversion to Digital Mammography by Enhancing Comparative Review of Previous Film and Current Digital Mammograms - NASHUA, N.H., Oct. 7 /PRNewswire-FirstCall/ -- iCAD(R), Inc. (NASDAQ: ICAD), an industry-leading provider of Computer-Aided Detection (CAD) solutions, today announced the availability of its TotalLook(TM) next- generation imaging solution, a comprehensive film-to-digital offering that converts previous film mammograms into digital form for comparison with more recent images from digital mammography systems. By digitizing and delivering film-based breast examination images from prior years to the same digital viewing station used to examine current digital mammograms, iCAD's new imaging solution assists radiologists in the important examination step of comparing breast images year to year to detect potentially subtle changes which may be indicative of breast cancer. "We believe the DMIST [Digital Mammography Imaging Screening Test] multi- year clinical study, released in September 2005, will accelerate the adoption of digital mammography," said W. Scott Parr, President and CEO of iCAD, Inc. "As the leading provider of digital CAD systems we are confident that our new TotalLook solution will enhance our revenue opportunity in this fast growing market. Today, there are approximately 1,000 existing digital mammography centers worldwide, and 750 additional clinics are projected by Frost & Sullivan* to transition from film to digital or partially digital workflows over the next year. iCAD's TotalLook provides an immediate solution to a problem experienced by almost every digital mammography user - how to view prior cases captured on film." TotalLook converts prior film images into a digital format and automatically adjusts the digitized images for correct display on the same workstation and in the same context as the current year digital mammogram. By providing radiologists with a "total look" at a mammography patient's multi- year breast examinations, the solution reduces light box glare and eliminates the need to shift back and forth from light box to workstation to speed workflow, improve productivity and reduce discomfort. Streamlined for high- productivity, iCAD's TotalLook solution has the capability to: * Automatically retrieve and receive patient information from HL-7 or DICOM worklists * Digitize standard mammography films in 23 seconds * Capture the full fidelity of original film mammograms in each digitized image * Track and label records in industry-standard DICOM format * Send complete records to multiple DICOM destinations simultaneously * Display high-resolution digitized images on many DICOM workstations in any hanging protocol The TotalLook solution includes an iCAD digitizer-based workstation and software that makes it easier to compare prior film images with digitally acquired current images. With a suggested list price of $49,995, TotalLook systems are available now. Working in conjunction with iCAD's SecondLook(R) CAD systems, TotalLook presents a comprehensive film-to-digital solution that makes it easier for women's health centers to transition to digital mammography. Parr commented, "We have strategically positioned our Company to be the leading CAD provider in digital mammography and film-based mammography for lower case volume clinics. In both areas, we are executing a plan to expand and enhance our product offerings, including in some cases new solutions that complement our SecondLook early cancer detection systems. TotalLook, the first example of such an offering, significantly expands the current opportunity in our existing digital mammography market." "Yesterday," continued Parr, "iCAD reported that its third quarter sales, in particular sales to film-based mammography practices, substantially trailed earlier expectations. We believe this was partly due to the DMIST digital mammography study referenced above. While the DMIST study enhances sales opportunities for both our SecondLook digital CAD products and our new TotalLook film-to digital solution, the publication of the study appears to have extended the sales cycle for some film-based buyers that are taking additional time to examine and consider the study's conclusions. We do not expect our targeted smaller volume clinics to fundamentally change their demand for iCAD's film-based CAD solutions. This market should continue to be a strong area of business growth for iCAD in coming quarters, and we believe additional product offerings will support and enhance that growth. With a strong balance sheet, an estimated $6.5 million in cash at the end of the third quarter, and what we consider an advantageous competitive position in core markets, we look forward to demonstrating the strength of our business plan in the fourth quarter of 2005 and beyond." About iCAD, Inc. iCAD, Inc. is an industry-leading provider of Computer-Aided Detection (CAD) solutions that enable healthcare professionals to identify cancer and other life-threatening conditions earlier by making medical services more effective, more accessible and more affordable for patients worldwide. Recipient of Frost & Sullivan's Growth Strategy Leadership award, iCAD offers a comprehensive range of high-performance, upgradeable CAD systems for the high, mid and low volume mammography markets. As the most frequently selected CAD solution for film-based and digital breast screening, iCAD is entrusted with the task of early cancer detection by over one thousand women's healthcare centers worldwide. For more information, call +1 877 iCAD now or visit http://www.icadmed.com/. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this News Release constitute "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence, increased competition, customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "believe", "demonstrate", "intend", "expect", "estimate", "anticipate", "likely", and similar expressions identify forward- looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release. iCAD and SecondLook are registered trademarks and TotalLook is a trademark of iCAD, Inc. *Frost Sullivan, 2005 European Mammography Systems Market Report, 2004 Mammography Market Report For iCAD investor relations, contact Kevin McGrath of Cameron Associates at +1 212 245 4577 or via email at . For all other inquires, contact Monica Pandolfi of SHIFT Communications at +1 617 681 1235 or via email at . DATASOURCE: iCAD, Inc. CONTACT: Kevin McGrath of Cameron Associates for iCAD, +1-212-245-4577, ; or Monica Pandolfi of SHIFT Communications for iCAD, +1-617-681-1235, Web site: http://www.icadmed.com/

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