iCAD Reports Inducement Grant in Compliance with NASDAQ Rules

NASHUA, N.H.--([ BUSINESS WIRE ])--iCAD, Inc. (Nasdaq: ICAD), an industry-leading provider of advanced image analysis, workflow solutions and radiation therapies for the early identification and treatment of cancer, today announced the grant of certain stock options, disclosed in the Companya�s Form 8-K filing dated April 27, 2011, to Kevin C. Burns, Executive Vice President of Finance and Chief Financial Officer, pursuant to NASDAQ Marketplace Rule 5635(c)(4). The inducement grant was approved by the Company's Board of Directors and was made as an inducement that was a material component of Mr. Burnsa� compensation and subsequent acceptance of employment with the Company.

Mr. Burns was granted Non-Qualified Stock Options, outside of a shareholder approved plan, to purchase 500,000 shares of the Companya�s common stock, par value $0.01 per share on April26, 2011, with an exercise price equal to $1.12, the closing sale price of the common stock on that date. The options become exercisable as to one third of the shares covered thereby on the first, second and third year anniversary of the date of grant. The options expire on April26, 2021, subject to earlier expiration under certain conditions. The unvested portion of these options will automatically vest if Mr.Burnsa� employment is terminated by the Company or by Mr.Burns for agood reasona without acausea within six (6)months of a achange in controla as such terms are defined in his employment agreement.

About iCAD, Inc.

iCAD, Inc. is an industry-leading provider of advanced image analysis and workflow solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing the most prevalent cancers earlier. iCAD offers a comprehensive range of high-performance, upgradeable Computer-Aided Detection (CAD) systems and workflow solutions for mammography, Magnetic Resonance Imaging (MRI) and Computed Tomography (CT). iCAD recently acquired Xoft, Inc., developer of the Axxent^� eBxa" electronic brachytherapy system (eBx). Axxent uses non-radioactive miniaturized X-ray tube technology and is FDA-cleared for treatment of early stage breast cancer, skin cancer and endometrial cancer. The Axxent System is also cleared for use in the treatment of other cancers or conditions where radiation therapy is indicated including Intraoperative Radiation Therapy (IORT). For more information, call (877) iCADnow or visit [ www.icadmed.com ].

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

Certain statements contained in this News Release constitute aforward-looking statementsa 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 Companya�s ability to defend itself in litigation matters, the Companya�s ability to identify a replacement for the Axxent FlexiShield Mini, the risks relating to the Companya�s acquisition of Xoft including, the expected benefits of the acquisition may not be achieved in a timely manner, or at all; the Xoft business operations may not be successfully integrated with iCADa�s and iCAD may be unable to achieve the expected synergies, business and strategic objectives following the transaction, 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 Companya�s filings with the Securities and Exchange Commission. The words abelievea, ademonstratea, aintenda, aexpecta, aestimatea, aanticipatea, alikelya, 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 additional disclosure regarding these and other risks faced by iCAD, please see the disclosure contained in our public filings with the Securities and Exchange Commission, available on the Investors section of our website at [ http://www.icadmed.com ] and on the SECa�s website at [ http://www.sec.gov ].

N@N

iCAD Reports Inducement Grant in Compliance with NASDAQ Rules