EXHIBIT 99.1

FOR IMMEDIATE RELEASE:                                                     NEWS
March 5, 2002                                                       NASDAQ-CMED

                     COLORADO MEDTECH, INC. SETTLES DISPUTE
                           WITH GEN-PROBE INCORPORATED


BOULDER, Colorado -- Colorado MEDtech, Inc. (NASDAQ -- CMED), a provider of
advanced medical technology outsourcing services and medical imaging products,
announced today that it and Gen-Probe have settled all outstanding issues,
including the withdrawal of litigation between the parties. Colorado MEDtech's
expenses associated with the dispute in the quarter ending March 31, 2002,
including its contribution to the settlement and its legal fees and costs, are
expected to be approximately $1.1 million.

"We entered into this agreement to put an end to the disruptions and expenses
caused by the dispute," said Stephen K. Onody, CEO and Chairman. "This agreement
is not a reflection of the merits of the case. I am excited that with this
distraction cleared we can continue to focus on the execution of our ongoing
profitability and growth strategies."

Colorado MEDtech, Inc. is the full-service OneSource OutSource(TM) provider of
advanced medical technology outsourcing services, including device and
disposables development, software, medical device connectivity, manufacturing,
system components for medical imaging and ultrasound accessories.

Forward-Looking Statements

The statements in this news release that are not historical facts 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 "expect," "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
settlement of the Gen-Probe dispute will not result in profitability and growth
for the Company, 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, the risk that acquired companies cannot be successfully
integrated with the Company's existing operations 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 Company is dependent. 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