Lumisys to Acquire CompuRAD


     Transaction to create a leading supplier of Medical Image
                        Management components

Sunnyvale, California (September 29, 1997) - Lumisys, Inc. 
(NASDAQ:LUMI) and CompuRAD, Inc. (NASDAQ:COMD) today announced 
that they have entered into a definitive agreement for Lumisys to 
acquire CompuRAD, a leading provider of Teleradiology and PACS 
software in a stock for stock merger.  The combined company will 
focus on offering both hardware and software components to Medical 
Image Management system suppliers, OEMs and VARs.

This acquisition is expected to qualify as a tax free 
reorganization, and is expected to be accounted for as a pooling 
of interests.  The consummation of the acquisition is subject to 
certain conditions, including stockholder approval for both 
companies.  The transaction is anticipated to close during the 
first quarter of 1998.  Under the terms of the agreement, CompuRAD 
stockholders will receive .928 shares of Lumisys common stock for 
each share of common stock of CompuRAD.  Dr. Phillip Berman, 
Chairman of the Board, President and Chief Executive Officer of 
CompuRAD, and David Lapan, MD, CompuRAD Board of Directors member, 
will join the Lumisys Board of Directors.  Dr. Phillip Berman will 
serve as President and Stephen Weiss, Chief Executive Officer of 
Lumisys, will serve as the Chief Executive Officer of the combined 
company.

"In bringing together these two companies, we will be able to 
offer more products to our customers and increase long-term 
opportunities for employees,"  said Stephen Weiss.  Weiss added, 
"By increasing the software capabilities of our core products, we 
also will be able to offer our customers a new generation of 
'intelligent'  medical imaging appliances."

"We believe the combined companies will be able to deliver 
customers a unique combination of hardware, software, services 
and, ultimately, appliances" said Dr. Berman.  Dr. Berman added 
"this combination will also allow us to leverage the growing 
opportunities in the closely-related nuclear medicine, cardiology 
and clinical information market segments."

Lumisys designs, manufactures and markets a family of precision 
digitizers that convert medical images on film or video into 
digital format.  The Company's digitizers process images from all 
commercially available medical imaging modalities, including x-
ray, CT, MRI, ultrasound and nuclear medicine.  Lumisys' video 
digitization and compression products also have applications in 
scientific and industrial inspection, broadcast video and 
multimedia imaging.  Additional information on Lumisys is 
available at www.lumisys.com.

CompuRAD is a leading provider of Teleradiology and PACS software 
products designed to capture, distribute, manage, store and view 
radiology images to enable faster patient diagnosis and treatment. 
 CompuRAD also offers an innovative Clinical Data Repository and 
Access product called ClinicalWare which combines 
Internet/Intranet and Object technologies.  Additional information 
on CompuRAD is available at www.compurad.com.

This press release contains forward looking statements that 
involve risks and uncertainties, including those relating to the 
possible inability to complete the acquisition as scheduled, or at 
all.  Assuming completion of the acquisition, such risks and 
uncertainties include risks that integration of operations, 
technologies and products of the combining companies might not 
occur as anticipated; that management's attention might be 
diverted from day to day business activities; and that greater 
than normal employee turnover might occur.  In addition, there are 
normal risks and uncertainties associated with Lumisys' and 
CompuRAD's business, including the timely development, acceptance 
and pricing of new products and the impact of competitive 
conditions as well as the other risks detailed from time to time 
in the SEC reports of Lumisys and CompuRAD, including the report 
on Form 10-Q for the quarter ended June 30, 1997 for Lumisys and 
the report on Form 10-Q for the quarter ended June 30, 1997 for 
CompuRAD. 
 
 

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