iCAD Provides Reimbursement Support Services To Customers

NASHUA, N.H., Nov. 17 /PRNewswire-FirstCall/ -- iCAD, Inc. , 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 an agreement with HealthCare IQ, Inc., a leading healthcare reimbursement service provider. Under the agreement, HealthCare IQ will provide reimbursement support for customers with iCAD products and assist in the marketing and sales process by providing pre-sale services to iCAD’s prospective customers. iCAD expects the partnership to increase market awareness of the affordability of all of the company’s CAD products.

“With the broad range of CAD products offered by iCAD, especially the Second Look 200 system for small film-based practices, we need to help our customers through the task of establishing appropriate billing and reimbursement procedures,” said W. Scott Parr, Chief Executive Officer of iCAD, Inc. “The HealthCare IQ program will include the ability to provide CAD awareness to private payers, customize reimbursement models, suggest appropriate billing procedures and provide assistance with payment denials. This support will enable even small clinics to establish sound reimbursement programs, get their payback models working quickly, and cost-justify their investment in CAD.”

These services should be especially attractive to film based practices performing 20 or fewer cases per day. Generally both smaller in size and new to the world of CAD, these practices often begin providing CAD with the Second Look 200 system. Second Look 200 is a high-performance, low-cost solution that can be acquired under a “Click-CAD,” fee per procedure program. Customers acquiring systems in this manner often have limited experience in obtaining reimbursement for new services. These centers should receive the most benefit from the services provided under the agreement.

“HealthCare IQ is excited to be partnering with iCAD in their effort to make CAD technology more accessible and affordable to women’s clinics throughout the United States,” said Art Gelber, CEO of HealthCare IQ. “Offering our reimbursement services will allow iCAD, a market leader with the broadest product portfolio, to reach clinics of all sizes and positively affect the lives of more women.”

Recently, iCAD received the highest rating based on product functionality, customer satisfaction and price in the most recent MD Buyline Report. As well, iCAD has been recognized as the recipient of the 2004 Frost & Sullivan “Growth Strategy Leadership Award.”

About iCAD, Inc.

iCAD engineers, develops, manufactures and markets computer aided detection (CAD) products for the early detection of breast cancer and other health-care related applications. Early detection of breast cancer can save lives and often permits less costly, less invasive and less disfiguring cancer treatment options than when the cancer is detected at a later stage.

iCAD is the only independent, integrated digitizer hardware and CAD software company offering compute aided detection solutions. As such, iCAD is able to reduce costs at each step in the CAD product design, production and assembly process. The company believes its vertical integration of CAD and hardware development results in better integration of software and film digitizer components, lower production costs and reduced administrative overhead. These achievements have allowed iCAD to progressively enhance its CAD product line, while reducing the costs of CAD to many customers and allowing more women to realize the benefits inherent in the early detection of breast cancer.

On December 31, 2003, iCAD completed its merger with and acquisition of CADx Systems, Inc. and its parent company Qualia Computing, Inc., bringing together two of the three companies approved by the US Food and Drug Administration to market CAD solutions for breast cancer applications in the United States. The company is headquartered in Nashua, New Hampshire and its common stock is listed on the Nasdaq Stock Market under the symbol “ICAD”. The full text of the Frost & Sullivan Leadership Award and more information on iCAD’s products can be found at 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 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 further information, please contact: Kevin McGrath of Cameron Associates, +1-212-245-4577, Kevin@cameronassoc.com, for iCAD, Inc.

iCAD, Inc.

CONTACT: Kevin McGrath of Cameron Associates, +1-212-245-4577,Kevin@cameronassoc.com, for iCAD, Inc.