iCAD Reports Patent Matter

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 [phone] or via email at . 

DATASOURCE: iCAD, Inc.



CONTACT: Kevin McGrath of Cameron Associates, [phone],





Web site:  http://www.icadmed.com/ 

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