Exhibit 99.1

FOR IMMEDIATE RELEASE:                                                      NEWS
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December 22, 1999                                                    NASDAQ-CMED


                      COLORADO MEDTECH, INC. COMMENTS ON
                        EXPECTED SECOND QUARTER RESULTS

BOULDER, Colorado -- Colorado MEDtech, Inc. (NASDAQ -- CMED), a Boulder,
Colorado-based medical products and outsourcing services company, today
announced that it estimates that earnings per share for its second quarter ended
December 31, 1999 could be in the range of approximately $.06 to $.08 per fully
diluted share, which is lower than analyst estimates.  The estimate includes the
effect of one-time charges and non-recurring expenses of approximately $.02 to
$.03 per share associated with the acquisition of CIVCO Medical Instruments Co.
and the operational reorganization of product manufacturing operations.
Revenues for the quarter are expected to be in the range of $17.0 million to
$19.0 million.

Certain development programs are experiencing technical delays and schedule
extensions.  As a result, in order to move them to successful completion or
transition them to manufacturing, the company has scaled back activity on these
projects and has provided discounts on portions of the work.  The company is
working very closely with its customers to resolve these issues in the near
future.

Outsourcing sales and marketing efforts in the past have not provided the
necessary sales to fill the gap caused by the factors described above.  In
response, the company has taken several positive steps to improve its sales and
marketing organization, including hiring a vice president of business
development, centralizing its sales and marketing management, and increasing
sales coverage.

One of the company's strategic acquisitions this year was the Creos x-ray
generator manufacturing operations.  Subsequent to the acquisition, the company
has been integrating three of its manufacturing operations (including x-ray
generator operations) into one common facility.  This has resulted in product
shipment delays that have temporarily impacted revenues and profits.  The
company believes it has made substantial progress in solving the integration
issues.

The company expects these factors will improve during the third quarter ended
March 31, 2000 and further improvements will be achieved by the end of the
fiscal year.

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"While I am disappointed with these developments, I believe they are temporary
and we have taken steps to address them," said John V. Atanasoff, President and
CEO.  "During this calendar year we made three strategic acquisitions.  We
believe the long term impact will be positive, however the integration process
has been slower than anticipated.  Our programs to improve and streamline our
organization, decrease our costs and integrate our acquisitions have temporarily
impacted our revenues and profits, but will benefit our growth in the long run."

Colorado MEDtech plans to announce second quarter results on February 8, 2000.

Statements in this news release which are not historical facts are forward-
looking statements subject to risks and uncertainties which could cause actual
results to differ materially from those set forth in or implied by forward-
looking statements, including, but not limited to, the fact that the estimates
provided in this release are preliminary estimates only and could change as more
current and complete operating results become available.  In addition, forward
looking statements are subjecct to the risk that the Company's existing level of
orders may not be indicative of the level or trend of future orders, the risk
that the Company may not successfully complete the work encompassed by such
orders, the risk that acquired companies cannot be successfully integrated with
the Company's existing operations and the risk that a downturn in general
economic conditions or customer budgets may adversely affect research and
development and capital expenditure budgets of potential customers upon which
the Company is dependent.  These factors are more fully described in the
Company's documents filed with the Securities and Exchange Commission, including
its Form 10-K for the year ended June 30, 1999, copies of which the Company will
provide on request.

Colorado MEDtech, Inc., through its wholly-owned affiliates and operating
divisions, is a leading full-service provider of advanced medical products and
comprehensive outsourcing services for medical device and pharmaceutical
companies.

                                   CONTACTS:

Colorado MEDtech, Inc.
John V. Atanasoff, President and CEO              Telephone:       303.530.2660
Stephen P. Hall, CFO                              Fax:             303.581.1010
Website: www.cmed.com                             Email:      cmedinfo@cmed.com
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