For Immediate Release
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                   iCAD ANNOUNCES $8,425,000 PRIVATE PLACEMENT

  FINANCING WILL REDUCE DEBT, ELIMINATE CERTAIN CONVERSION RIGHTS, AND PROVIDE
         WORKING CAPITAL RESERVES TO SUPPORT AGGRESSIVE GROWTH STRATEGY


NASHUA, New Hampshire, December 15, 2004 -- iCAD, Inc. (Nasdaq: ICAD), which
designs, develops and markets Computer Aided Detection (CAD) imaging technology
and systems for the early detection of breast cancer and other medical
applications, today announced that an aggregate of 1,166,666 shares of the
Company's common stock (the "Shares"), along with five-year warrants (the
"Warrants") to purchase 583,333 shares of common stock, have been sold to three
institutional and accredited investors for a total price of $5,250,000. Each
Warrant allows the warrant holder to purchase one share of the Company's common
stock at an exercise price of $5.50 per share. The Company has agreed to
register the Shares and the shares of common stock underlying the Warrants with
the Securities and Exchange Commission. iCAD has also received commitments from
an additional limited number of institutional and accredited investors for up to
$3,175,000 of additional equity financing on the same terms, and expects to
close upon such commitments upon receipt of the funds.


iCAD expects to use approximately $3.3 million of the proceeds from this private
placement to reduce borrowings under a line of credit with the Company's
Chairman (the "Line of Credit") and an additional $625,000 to reduce accrued
interest and related obligations. This transaction will reduce the Company's
annual interest expense by approximately $240,000 and lower the amount of common
stock issuable under conversion rights associated with the Line of Credit by
approximately 1.3 million shares.


"This financing will allow us to reduce our credit line borrowings, reduce
interest expenses, and enhance the liquidity of iCAD's balance sheet," stated W.
Scott Parr, President and CEO of iCAD, Inc. "Any dilution associated with the
financing will be largely offset by the reduction in potential dilution
associated with the paydown of our convertible line of credit."


"We believe this transaction will play a key role in positioning iCAD for
significant growth in coming years," concluded Mr. Parr.


ABOUT iCAD, INC.


Early detection of breast cancer saves lives. Computer-aided detection from
iCAD, Inc. can detect 23% of breast cancers an average of 14 months earlier than
screening mammography alone. iCAD offers the fastest CAD system available, the
only system to look for breast asymmetries as potential indicators of breast
cancer, and the most effective system available to detect breast masses.




iCAD offers the only CAD system designed on a relational database platform,
which can improve productivity and reduce operating and capital costs at women's
health centers by offering computer aided detection as an integrated or
integration-ready part of current or anticipated informatics systems, digital
imaging resources, and workflows. In January 2002, the Company received approval
from the U.S. Food and Drug Administration (FDA) to market its computer aided
detection systems in the United States.


iCAD, the only vertically integrated company in its market, also manufactures
medical film digitizers for a variety of medical imaging and other applications.
The Company is headquartered in Nashua, New Hampshire and its common stock is
listed on The Nasdaq Stock Market under the symbol "ICAD". More information on
iCAD's products can be found at 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.

  For more information on iCAD, Inc., contact, Kevin McGrath at (212) 245-4577
                     or via email at kevin@cameronassoc.com






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