Alan Penn & Associates, Inc. is developing a computer-aided-diagnosis (CAD) system to assist radiologists in distinguishing benign from malignant breast lesions in gadolinium-enhanced magnetic resonance (MR) images. The CAD system uses reader interpretations and computer analysis to generate numeric and visualization aids to help the radiologist make more informed decisions. This paper presents results of analyses that evaluate the statistical and diagnostic effectiveness of the breast-MR CAD system: 1)Evaluation of a first-generation CAD system by five radiologists at the University of Pennsylvania Medical Center (UPMC). 2)Validation of the computer-generated fractal measure using a second set of images. This paper also presents a description of a second-generation system that includes kinetic interpretations.