iCAD Reports Patent Matter NASHUA, N.H., April 27 /PRNewswire-FirstCall/ -- iCAD(R), Inc. (NASDAQ: ICAD) today announced that on April 18, 2005, it received a letter from R2 Technology, Inc., the Company's principal competitor, advising the Company of R2's position that iCAD's Second Look(R) product lines allegedly infringed on US Patents 6,266,435, 6,477,262 and 6,574,357, which are licensed to R2. These patents are continuations in part of the patents already licensed to iCAD by R2 under a September 2003 Settlement Agreement that resolved certain patent infringement litigation between iCAD and R2 (the "Settlement Agreement"). R2 has not given the Company sufficient information to evaluate R2's position. Under the prior Settlement Agreement, the rights of R2 to assert subsequent claims of infringement of this nature against iCAD are limited, and require reasonably detailed notice, the opportunity for negotiation and binding arbitration as a required alternative to litigation. W. Scott Parr, iCAD's President and CEO, responded, "We do not believe our competitor has stated any valid claim against iCAD. We further believe iCAD's own patent position is very strong, and has been enhanced dramatically by our acquisition of Qualia Computing and CADx Medical Systems in December of 2003. Should R2 formally assert a claim of patent infringement and demand arbitration, iCAD may in turn assert broad patent infringement claims against R2." Mr. Parr indicated he would respond to questions regarding the reported patent matter at the Company's scheduled earnings conference call on Thursday, April 28, 2005. 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 and repeatedly recognized as offering "The Winning Combination" of Price and Performance by MD Buyline, 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 almost one thousand women's healthcare centers worldwide. For more information, call +1 877 iCADnow 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 other 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 Second Look are registered trademarks of iCAD, Inc. For more information on iCAD, Inc., contact Kevin McGrath of Cameron Associates at +1 212 245 4577 or via email at . DATASOURCE: iCAD, Inc. CONTACT: Kevin McGrath of Cameron Associates, +1-212-245-4577, Web site: http://www.icadmed.com/

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