Exhibit 99.1

TEMPE, ARIZ., FRIDAY JULY 13, 2001 - ORTHOLOGIC,  INC. (NASDAQ: OLGC), ANNOUNCED
TODAY THAT IT HAS  COMPLETED  THE SALE OF ITS  CONTINUOUS  PASSIVE  MOTION (CPM)
BUSINESS TO ORTHOREHAB, INC.

OrthoLogic received $12.0 million in cash at the closing, and OrthoRehab, Inc.
assumed approximately $2.0 million in liabilities. In addition, OrthoLogic may
earn up to an additional $2.5 million in cash, payable in August 2002, depending
upon OrthoRehab's success in accomplishing certain objectives. As part of the
sale, OrthoLogic retained approximately $10 million in billed accounts
receivable related to the CPM business. The company will record a one-time loss
on the sale of the CPM business of approximately $7 million during the second
quarter ended June 30, 2001, as well as a one-time charge of approximately $7
million related to costs associated with the final divestiture of the business.

"We are pleased to have completed this transaction," said Thomas R. Trotter,
president and CEO of OrthoLogic. "We are very excited about moving forward with
our rapidly growing bone stimulation business and our Chrysalin program."

Trotter added, "The second quarter results for our bone stimulation business
were very encouraging, and we remain on target to achieve $30 million in total
stimulation sales this year, which would represent a 50% growth over prior year.
Because the overall stimulation market is growing in the 12% to 15 % range
annually, we are clearly gaining share with our market-leading technology.

"In addition, we achieved record cash collections during the second quarter
ended June 30, 2001. We believe that our improving cash position, coupled with
the expected net proceeds from the divesture of the CPM business, will allow us
to consider a number of new alternatives for the company, including a potential
stock repurchase program."

Trotter added, "For the second quarter ended June 30, 2001, we remain
comfortable with analysts' estimates of earnings of approximately $0.01 per
share, exclusive of the one-time charges previously announced for the quarter."

OrthoLogic develops, manufactures and markets proprietary, technologically
advanced orthopedic devices designed to promote the healing of musculoskeletal
tissue. Founded in 1987, the company is located in Tempe, Ariz.

For more information, please visit the company's Web site: www.orthologic.com.

Statements in this release that are not historical may be deemed forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Although the company believes the expectations reflected in any
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be attained. These forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially. These risks include reliance on continued growth of the bone
stimulation business, our ability to meet the demands of our growth and our
ability to continue cash collections at current levels. For a more complete
description of the risks and uncertainties that face the company, see the
company's annual report on Form 10-K for the fiscal year ended Dec. 31, 2000,
and other documents filed by the company with the Securities and Exchange
Commission.