EXHIBIT 99.1

FOR IMMEDIATE RELEASE:                                                     NEWS
March 13, 2003                                                      NASDAQ-CMED

                        COLORADO MEDTECH, INC. ANNOUNCES
                  SALE OF COMPANY TO KRG CAPITAL PARTNERS, LLC

BOULDER, Colorado -- Colorado MEDtech, Inc. (NASDAQ -- CMED) today announced
that it has entered into a definitive agreement to sell the Company to CIVCO
Holding, Inc., an entity controlled by KRG Capital Partners, LLC and its
affiliated funds. Under the terms of the agreement, a subsidiary of CIVCO
Holding will be merged with and into Colorado MEDtech, with Colorado MEDtech
continuing as a private corporation.

Under the terms of the agreement, shareholders of Colorado MEDtech will receive
cash for each share of Colorado MEDtech common stock that they own, equal to
$62.5 million in the aggregate plus Colorado MEDtech cash (net of any remaining
liabilities) at the time of closing, divided by the number of shares outstanding
(currently approximately 13,300,000). Based upon such formula, the Company
estimates that the closing proceeds to be paid to Colorado MEDtech shareholders
will be in the range of $4.50 -- $5.00 per share. The transaction, which is
subject to shareholder approval and customary closing conditions, is expected to
close by June 30, 2003.

"We are extremely pleased to have signed this agreement with KRG Capital," said
Stephen K. Onody, Colorado MEDtech's Chairman and CEO. "Over the past several
months we engaged in a careful and extensive process of seeking buyers for the
Company. KRG's significant experience in the medical device industry and clear
understanding of the business model of our CIVCO subsidiary prompted them to
offer significant value to our shareholders."

Bruce Rogers, Co-founder and Managing Director of KRG Capital Partners, LLC
stated, "We are extremely pleased to have executed the agreement to acquire the
outstanding shares of Colorado MEDtech. This transaction will result in KRG
Capital and its affiliated funds gaining control of Colorado MEDtech's
profitable CIVCO Medical Instruments subsidiary. We are excited to become the
new financial partner for the CIVCO management team and we look forward to
continuing to build upon CIVCO's strong track record as a leader in the
ultrasound accessories and minimally invasive surgical markets."

Tri-Artisan, LLC is advising Colorado MEDtech on the transaction.

Colorado MEDtech, Inc., through its CIVCO Medical Instruments Co., Inc.
subsidiary, is a full service developer and manufacturer of medical devices and
equipment for the ultrasound and minimally invasive OEM and end-user markets.

KRG Capital Partners, LLC, headquartered in Denver, Colorado, is a private
equity investment firm specializing in acquiring controlling interests in middle
market companies. KRG Capital, through its affiliated funds, manages over $750
million of committed capital to support its companies and their add-on
acquisition opportunities.





Forward-Looking Statements

The statements in this news release that are not historical facts, including
those regarding strategic alternatives, are forward-looking statements that
represent management's beliefs and assumptions based on currently available
information. Forward-looking statements can be identified by the use of words
such as "believes," "intends," "estimates," "may," "will," "should,"
"anticipated," "expected" or comparable terminology or by discussions of
strategy. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot assure that these
expectations will prove to be correct. Such statements involve risks and
uncertainties including, but not limited to, the risk that the Company's
shareholders may not approve the merger transaction, the risk that a material
adverse change in the Company's business may prevent the merger from closing
(i.e., 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 current or future orders, the
risk that unforeseen technical or production difficulties may adversely impact
project timing and financial performance, the risk of an adverse result in
pending or potential litigation, the risks associated with regulation by the
Federal Food and Drug Administration including compliance with the Quality
System Regulation, 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 business of the
Company is dependent) or the risk that the Company may otherwise be unable to
successfully complete the merger transaction. Should one or more of these risks
materialize (or the consequences of such a development worsen), or should the
underlying assumptions prove incorrect, actual results could differ materially
from those forecasted or expected. These factors are more fully described in the
Company's documents filed from time to time with the Securities and Exchange
Commission. The Company disclaims any intention or obligation to update publicly
or revise such statements whether as a result of new information, future events
or otherwise.


                                    CONTACTS:

Colorado MEDtech, Inc.
Stephen K. Onody, President and CEO              Telephone:        303.530.2660
Gregory A. Gould, CFO                            Fax:              303.581.1010
Website: www.cmed.com                            Email:       cmedinfo@cmed.com